French automobile manufacturer Renault has made a deal to manufacture Nissan's Micra compact car at its Flins plant, which is located near Paris in France.
Production of the vehicles is scheduled to start in 2016 at the plant, which has a capacity to manufacture 82,000 units per year and later they will be exported to left-hand drive markets in the Europe.
The agreement follows complete usage of Nissan's manufacturing network to produce vehicles under its Power 88 six-year business plan that includes an average launch of one new model in every six weeks for the period.
According to Nissan, the production of the vehicle in European plants benefits the company in capital expense reduction, foreign exchange exposure reduction and working capital reduction through shorter supply chains.
Currently, Nissan obtains the powertrain from the Cleon facility and the NV400 light commercial vehicle from the Batilly plant.
As part of the deal, Renault will increase the annual production capacity of its French plants from 180,000 vehicles, to 710,000 vehicles, while the new calls for 100,000 units from Renault's new products and 80,000 vehicles from its partners.
