Under pressure from Paris, Renault-Nissan plans to boost van production

France-based Renault recently said it will build new Nissan and Mitsubishi vans at its domestic plants, raising investment in the country as it explores closer integration of the three-way carmaking alliance with government backing.

Renault will build a new Nissan NV250 delivery van at the northern Maubeuge factory, on an architecture shared with its own Kangoo model that includes an electric version, the alliance said in a statement.

A larger Mitsubishi van will also be produced in Sandouville, western France, alongside Renault’s Trafic. The move raises Renault’s announced investment in France this year to 1.4 billion euros ($1.6 billion), the companies added.

Under pressure from the French government, the carmaker’s biggest shareholder, Renault boss Carlos Ghosn agreed this year to pursue a closer tie-up with Nissan in what is likely to be his last fouryear stint as chief executive.

Renault owns 43.4 percent of Nissan, which in turn holds a non-voting 15 percent stake in its French parent and 34 percent of Japanese conglomerate Mitsubishi Motors.

Ghosn has previously said a full merger is possible only if France gives up its 15 percent Renault holding, a step the government has been reluctant to consider without clearer safeguards on French jobs and other industrial interests.

The investment will eventually boost Renault’s sales to partners, which is one measure of its financial benefit from the alliance, which fell by 358 million euros in the most recent quarter, partly reflecting Europe’s diesel sales decline.

France was chosen for the van-related investment because “the Maubeuge and Sandouville factories offered the most attractive solution, thanks to their competitiveness,” Ghosn said.

The new Mitsubishi van will be exported from Sandouville to Australia and New Zealand. Page Editor: chenqingqing@globaltimes.com.cn