Renault to slash production costs for cars, expand in Turkey

Credit: REUTERS/GONZALO FUENTES

Adds further details, 400 mln euro investment planned

PARIS, Dec 7 (Reuters) - Renault RENA.PAsaid 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 intelligencetechnology.

Renault 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.

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.

(Reporting by Sudip Kar-Gupta and Gilles Guillaume; Editing by Benoit Van Overstraeten and Silvia Aloisi)

((sudip.kargupta@thomsonreuters.com;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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