Renault Says It Might Close Valladolid Plant without State Funds

Renault has always been open to talks with government officials - check out Carlos Ghosn's statements on the matter - but the French manufacturer is now planning to build up the pressure on the Spanish authorities, warning that it might close the Valladolid plant unless it receives financial aid. The production facility is currently working at a third of its total capacity and is manufacturing the Modus small minivan which is recording very low sales in most countries.

Well, the French manufacturer is now claiming that government support is mandatory these days in order to maintain operations in the country and make the factory competitive.

"We are talking about a future-oriented competitiveness plan to help us through the crisis and to ensure that we don't close the factory," Jean-Pierre Laurent, head of Renault's Spanish operations, was quoted as saying by Autonews.

"We have to ensure that Valladolid is competitive with other Renault factories," Laurent said. "To get there, we are going to need assistance from the national government, as well as from the regional government of Castile and Leon."

Renault says it could use government money to produce a new model in Spain, a new engine or even both of them. According to the aforementioned source, the French manufacturer eyes a small electric vehicle or a small diesel or gasoline car that could boost the company's sales in the region.

"We won't be able to maintain employment at Valladolid without these new projects, and we won't be able to do the projects without a new competitiveness plan from the government," Laurent said.

Back in 2008, the Spanish production facility built a total of 93,150 cars, 72,590 Modus models and 20,560 Clios. Furthermore, engine production fell to 982,332 last year from 1.1 million in 2007.