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Renault to slash production costs for cars, expand in Turkey

Published 12/07/2023, 07:52 AM
Updated 12/07/2023, 07:56 AM
© Reuters. Luca de Meo, CEO of Renault Group, speaks during a press conference by Renault Group, Nissan Motor Co., Ltd and Mitsubishi Corporation to present the Alliance update in Boulogne-Billancourt, near Paris, France, December 6, 2023. REUTERS/Stephanie Lecocq
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PARIS (Reuters) -Renault said on Thursday it aims to cut the production costs of its cars by as much as 50% in the next four years including by increasing the use of digital and artificial intelligence technology.

Renault (EPA:RENA) said that, between now and 2027, it would aim to cut its production costs per vehicle by 30% for internal combustion vehicles, and by 50% for electric vehicles.

The carmaker also wants to reduce vehicle development times to two years from three years, it said in a statement.

Renault already uses more than 300 AI applications to trace car parts such as tyres and boost quality control, and aims to increase that number to 3,000 by 2025.

© Reuters. Luca de Meo, CEO of Renault Group, speaks during a press conference by Renault Group, Nissan Motor Co., Ltd and Mitsubishi Corporation to present the Alliance update in Boulogne-Billancourt, near Paris, France, December 6, 2023. REUTERS/Stephanie Lecocq

As part of the plan to make its manufacturing base more competitive, the company also said on Thursday it would invest 400 million euros make four new models at its Bursa site in Turkey, including a new low-cost SUV Duster.

The goal is to turn the plant into an export hub not only for Europe but for other countries in the world, it said.

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