French carmaker Renault Group on Thursday said it plans to reduce its production costs by increasing the use of digital and artificial intelligence technology, and announced plans to expand its presence in Türkiye.
The company will be investing 400 million euros ($430.92 million) by 2027 to make four new models at its site in the Turkish northwestern Bursa province in collaboration with Türkiye’s OYAK Group, including a new low-cost SUV Duster.
As part of its "International Game Plan 2027," Renault said it aims to transform Türkiye into an export hub for Europe and other countries in the world.
It said it aims to cut the production costs of its cars by as much as 50% in the next four years by increasing the use of digital and artificial intelligence technology.
Between now and 2027, the company will aim to cut its production costs per vehicle by 30% for internal combustion vehicles and by 50% for electric vehicles.
The carmaker also wants to reduce vehicle development times to two years from three years, it said in a statement.
Renault already uses more than 300 AI applications to trace car parts such as tires and boost quality control and aims to increase that number to 3,000 by 2025.
Three of the new models to be manufactured at the Bursa plant will be designed to meet the needs of customers in the B and C SUV segments, said the company.
One of the highlighted models is the new Renault Duster, which is set to be available in Türkiye with a hybrid engine option in the second half of 2024.
Renault aims for one-third of its sales in Türkiye to be electric or hybrid by 2027, according to Fabrice Cambolive, the CEO of Renault.
"We will make our Bursa factory the export center not only for Europe but also for other countries worldwide," Cambolive told a meeting with the press in Istanbul.
Renault’s longstanding alliance partners Nissan and Mitsubishi confirmed plans earlier this week to invest in the French carmaker’s electric vehicle unit Ampere and use it to develop EVs for the European market.
Cambolive emphasized the longstanding partnership between Renault and OYAK in Türkiye, spanning 54 years. The two companies produced more than 7.5 million cars and reached a level where every out of seven vehicles in Türkiye features Renault logo, he noted.
"Türkiye plays a significant role in our ‘International Game Plan 2027.’ Our goal is to become the market leader in Türkiye, strengthen our brand with new products, show a strong presence, especially in the SUV segment and implement an electrification strategy based on hybrid and electric vehicles," the CEO said.
Jan Ptacek, the CEO of Renault Group Türkiye, highlighted the importance of local production for market leadership.
"Today, I am pleased to announce that we plan to localize four new Renault models before 2027 at our OYAK Renault Factory in Bursa. Among these new vehicles, three will be SUVs, including the Renault Duster," said Ptacek.
"By offering a product range that meets customer needs in the B and C SUV segments in Türkiye, Renault will further strengthen its leadership position."
Ptacek underlined the significance of Türkiye as a key industrial asset within the Renault Group, with the Bursa factory boasting the largest passenger car production capacity in the country.
He said the implementation of Renault Group’s new modular platform in the Bursa factory by 2026 will further enhance efficiency, offering a flexible and highly efficient platform supporting various powertrain technologies.