Renault will make more cars for partners

Renault will announce in the coming months plans to produce more vehicles for Daimler or allied partner Nissan, after reaching a new agreement with unions.
The agreement signed yesterday, Renault undertakes to produce 80 thousand vehicles annually to partner brands, helping to safeguard jobs in France amid the fall in sales of new cars in Europe.
The Chief Executive of Renault, Carlos Ghosn, has admitted that the success of the agreement will depend partially of reconquest of consumers for the own brand of Renault, in a market that is close to its worst level in 20 years. "A part of that growth has to come from the growth of the market share of Renault in Europe," said Ghosn.
In exchange for wage restrictions and other trade union concessions including more work hours, Renault promised to increase annual domestic production in about one-third, or 710 thousand vehicles up to 2016.
Ghosn, who previously had threatened to lead the Assembly of vehicles out of France if no agreement were reached, said that any production can be repatriated as a result of the agreement.
"By the end of 2013 and probably before the summer we will be in a position to announce part of 80 thousand vehicles — the production and local brands," Ghosn told reporters at the Renault headquarters near Paris.
Renault won agreement on the deal last week, unions represented about 66% of its workforce and signed the contract yesterday.
The French carmaker also undertook, under the agreement, not to close factories or resort to layoffs for the next three years.
The deal will generate annual savings in the order of € 500 million (US $ 651 million), Ghosn said in a newspaper interview published earlier on Wednesday.