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Renault to Boost Output in Spain
Renault SA says it will hike annual production at its assembly plant in Palencia, Spain, by about 40,000 units to 280,000 vehicles between 2014 and 2016.
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Renault SA says it will hike annual production at its assembly plant in Palencia, Spain, by about 40,000 units to 280,000 vehicles between 2014 and 2016.
The decision follows the company's new, more competitive labor agreement with unions there. Renault says the expansion will create 1,300 jobs.
The company has assigned the factory new models in four body styles, some of them for alliance partner Nissan Motor Co. The models will ride on a new vehicle platform and its derivative, according to Renault.
The company also plans to boosted engine and transmission output in Spain by an unspecified amount to as much as 1.4 million units by 2015.
Renault says its assembly plant in Valladolid, Spain, also will benefit from the new labor contract. That facility began making the Twizy electric city car early this year and was previously assigned production of a new B-segment vehicle.
The company began negotiations with its French unions early this month. Renault is offering guarantees of future work if workers agree to shrink labor costs in France to the level of those at Palencia and Nissan's assembly plant in Sunderland, England.
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