* Renault to build Nissan Micra in Flins
* Plan helps Renault meet French production pledge
* Flins plant targets production of 82,000 Micras
(Adds CEO comment, background on labour deal)
By Gilles Guillaume and Laurence Frost
PARIS, April 26 Renault announced
plans to build alliance partner Nissan's Micra mini in
France as it bolsters domestic production in return for union
Renault's Flins plant, near Paris, will begin assembling the
Micra subcompact for Europe in 2016, with an annual production
target of 82,000 vehicles, the carmaker said on Friday.
"This announcement is good news for Flins, but also for all
Renault plants in France," Renault-Nissan chief Carlos Ghosn
said in a company statement. "Renault is in line to fulfil its
In return for labour concessions obtained last month,
including wage restraint and longer hours, Renault promised to
increase domestic production by about a third, or 180,000
vehicles, by 2016.
Ghosn, who heads both Renault and 43.4 percent-owned Nissan,
had previously threatened to move some Renault production out of
France if no deal was reached with unions.
As part of the agreement, he pledged to repatriate models
including the Trafic commercial van from Spain to Sandouville,
in northern France. Some versions of the Renault Clio subcompact
will also return to Flins from Turkey, the company has said.
Renault's announcement closely followed the disclosure by
Nissan that it had asked Renault to assemble the next Micra at
an unspecified European site.
Renault won agreement on the new labour deal from unions
representing almost two thirds of its workforce, although the
left-wing CGT refused to sign.
The labour deal will generate annual savings of about 500
million euros ($650 million), Ghosn has said.
($1 = 0.7689 euros)
(Additional reporting by Yoko Kubota in Tokyo; Editing by James