Renault to increase output and create 1,300 jobs in Spain

Article by Anita Panait, on November 23, 2012

French carmaker Renault is planning to create 1,300 jobs in Spain under a scheme to increase output at its local plants, following an agreement with unions. Renault said in a statement that it will assign its Palencia plant in Northern Spain to build two new vehicle platforms, one a derivative of the other, and shared with Nissan.

The new platforms will underpin four vehicle bodies, allowing the French carmaker to boost total annual production by around 40,000 units to 280,000 units.

Through 2014 and 2015, output at Renault’s engine and gearbox plants will increase to almost 1.4 million units annually, the carmaker added. Renault’s body assembly plant in Valladolid will gain from the "competitive performance” agreed from recent negotiations with the carmaker carmakers, extending and improving the facility's options “with regard to future assignments."

Renault’s announcement over its plans in Spain comes as the carmaker commenced negotiations on a French new labor agreement it wanted to finalize by the end of January 2013.

Renault has asked French workers for pay the working time concessions, warning that the results of the negotiations outcome of talks may affect future production plans, unions disclosed earlier this month.

Pressured by the continued dwindling of the European car market, Renault is aiming to align French wage and production costs with its plant in Palencia, Spain, as well as with Nissan's Sunderland site in England, Renault Chief Operating Officer Carlos Tavares remarked in September.

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