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BUSINESS > With Sarkozy gone, Renault returns to Turkish plant

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French car company Renault is set to launch the production of the Sports Tourer, the Station Wagon version of  its Renault Clio model, in its Bursa plant as Turkish-French relations normalize with the end of former French President Nicolas Sarkozy's rule, daily Hürriyet reported.

Reports claimed that  the former president had told Renault not to produce its latest line of cars in their Bursa plant, which had left the firm struggling to maintain a minimum cost of production by dividing the work load between fims in France and Turkey. The former French president, however, even then reportedly insisted the production take place entirely in France.

Improved relations between the two nations following the end of Sarkozy’s presidential term have, however, altered the firm's final decision. Renault has relocated its entire production for the new Sports Tourer to its Bursa plant.

Renault will spend nearly 1,300 euros less on the production of each vehicle by manufacturing them in Turkey, with the overall savings reaching nearly 208 million euros in a year.
Production is set to begin in September.

July/30/2012

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READER COMMENTS

Brit in Turkey

7/31/2012 6:04:13 AM

Eric Martin - you may be right about the 50%, but even so there are big benefits to Turkey in the employment they create and the savings due to smaller import volumes.

Eric Martin

7/30/2012 11:50:13 PM

Does anyone know how much money leaves the country from these foreign plants? Someone said more than 50%. How is that good for the country? Build our own car! Can not believe these stupid Turkish holding companies don't want to build a domestic car. This is what separates Korea and Turkey. Their holding companies didn't waste time.

sam stevens

7/30/2012 11:03:10 PM

I think there's some blame shifting here. Didn't the Sultan put sanctions in place against France due to the Armenian bill ? It's easy to cast a shadow over Sarko but I think you'll find this is not the full story.

JRC JRC

7/30/2012 5:53:37 PM

@Red Tail. Have you heard of Recep Tayip Erdogan, the PM of Turkey?

Brit in Turkey

7/30/2012 2:59:17 PM

Renault is owned 15% by the French government according to Wikipedia.

dogan kemal ileri

7/30/2012 11:37:03 AM

Industry is run stricly on economic grounds or should be.As can be seen Sarkozy's bullying of Renault has got him precisely nowhere which is exactly what he deserves.Sakozy is now history and yesterdays man,lets not hear any more from him.

Red Tail

7/30/2012 10:26:56 AM

That a president of a country can go in a tell a company where to produces its cars is nothing but a scandal!!! This shows how rotten the West is. Just imagine, Sarkozy, just calls the CEO of a PRIVATE company, and tells them not to produce in Turkey, and Renault has to obey. Incredible.
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