As part of the Renault Group's strategy to optimize its industrial footprint, the Turkish-French joint venture Oyak Renault signed a five-year agreement with Turkish vehicle manufacturer Karsan for the production of its Megane sedan model.

According to the carmaker’s statement on Monday, the agreement aims to transfer the existing Megane sedan production to Karsan, thus making room for a new generation of vehicles at the Oyak Renault factory. The agreement is expected to become effective in the latter part of 2022.

While Karsan will be responsible for the production and assembly of the vehicle, the Turkish-French joint venture company will continue to produce parts for the chassis.

Oyak Renault will also continue to be responsible for the quality of the completed vehicles and the relations with the parts suppliers. The production of the Megane Sedan will be carried out by Karsan for five years, while the current sales network of the vehicle will be continued as it is currently.

The project aims for a yearly production capacity of 55,000 units.

Oyak Renault general manager and co-writer of the statement, Antoine Aoun, said he believes cooperation with a brand like Karsan, who has deep knowledge of the field and a competent workforce, will contribute greatly to the Turkish economy while adding a different perspective to the sector.

Karsan CEO Okan Baş said his company, which offers global electric and high-tech transportation solutions suitable for the mobility needs of the era, is happy for this cooperation with Oyak Renault.

“I believe that our cooperation with Oyak Renault will continue by getting stronger with this project, which we have taken the first step of. At the same time, we wish this good development to be auspicious for our Turkish automotive industry,” he said.

Oyak Renault, one of the facilities with the highest capacity of the Renault Group with an annual production volume of 378,000 cars and 920,000 engines, continues to produce and export the new Clio, new Clio Hybrid and Megane Sedan models, as well as the engines and mechanical parts used in those models.