LONDON (ShareCast) - (Sharecast News) - French carmaker Renault announced on Tuesday it would produce three new hybrid SUV models in its "second home" Spain.
The carmaker will also develop new engines and other vehicle parts in Spain, where it also benefits from lower production costs, giving the Mediterranean country an edge.

Production is set to start in 2022-2024 and is hoped to strengthen the brand's position in the country following an agreement with unions.

Ten months ago, Renault's partner Nissan said that it would be closing three Spanish plants by December as part of its restructuring plans.

"This plan reinforces Spain's position as Renault's second home," Chief Executive Luca de Meo announced at an event held at a plant in Palencia, which will produce the new compact and larger-size models.

Renault currently manufactures three vehicles at its Palencia and Valladolid factories, in northwestern Spain, and could generate an estimated €12bn for the Spanish economy over the following three to four years.

Renault is also seeking to cut costs and improve profit margins after it reported €8bn of red ink in 2020.

De Meo said Renault would take part in government-promoted projects to seek EU funds for the automobile sector, but did not elaborate.

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE