Azernews.Az

By Bloomberg

Renault SA, Europe's third-largest carmaker, is considering building engines in Morocco to serve growing production in the country and trim costs.

"An engine factory would make sense, given that we have capacity of 400,000 vehicles" at plants in Tangier and Casablanca, Chief Competitive Officer Thierry Bollore said today in an interview at the Paris Motor Show. "We're thinking about it, but we first need to have a stronger supply chain on the ground."

Renault assembles the Dacia Sandero hatchback in the facility in North Africa and has threatened to shift more production from the no-frills brand's home in Romania, as unions there demand higher wages. The French manufacturer's nearest engine plant to Morocco is in Spain.

Like other European carmakers, Renault is looking to cut costs as demand for new vehicles in the region only gradually recovers from hitting a two-decade low last year. Renault Chief Executive Officer Carlos Ghosn said in a Bloomberg TV interview today that he expects slow growth in Europe for years to come