French vehicle manufacturer Renault is planning to manufacture over 70% of its Clio subcompacts in Turkey.
The French government holds 15% of Renault, and the company's decision to shift production to lower-wage countries will cut down the relationship between the two.
In 2011, domestic plants accounted for 42% of Renault's overall European deliveries, compared to 64% of the company's competitor PSA Peugeot Citroen , which revealed 8,000 job cuts and a plant closure earlier in 2012.
In 2010, Renault CEO Carlos Ghosn was summoned by former President Nicolas Sarkozy following reports first emerged that the Clio could move abroad.
UK based UBS analyst Philippe Houchois said, "They're obviously under pressure and may have to decide whether to build more (Clios) in France to keep the peace with the government."
