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The direction of the French manufacturer Renault in Turkey announced it had taken steps gradual suspension of its production from 18 December to 12 January. In recent concern Oyak-Renault plant in Bursa in northwestern Turkey.

Reasons cited again: a monumental fall in sales.

Local carmakers Ford Otosan, Tofas, and Oyak Renault will suspend production because of the declining domestic and international demand. Ford Otosan informed the Istanbul Stock Exchange that it will stop production at its Koceali and Inonu plants between Dec 20 and Jan 12, 2009 .

Renault, Mahindra boost alliance


Renault and Indian partner Mahindra & Mahindra say they will build a plant in India to assemble 500,000 cars a year.

Renault's Japanese alliance partner Nissan Motor Co. may decide to join the project in the next four months, Renault chief executive Carlos Ghosn, who also heads Japan's second-biggest auto maker, told a news conference in Paris.

The project is an important part of Renault's strategy to boost global sales by 800,000 cars per year in 2009, compared to 2.5 million in 2005, and ride a wave of growing demand in countries such as Brazil, India, China and Russia as main west European markets are sluggish.

Renault aims to boost profit margins to six percent in 2009, from a forecast 2.5 per cent for 2006.

"We'd better succeed in India if we want to reach our 800,000. We need to do more in India than there is and we are very confident," Ghosn said, adding production capacity in western Europe was being reduced because car sales were down and that would remain so until the group started a new model offensive in the second half of 2007.

"This new agreement with Mahindra demonstrates Renault's willingness to continue to grow aggressively outside West Europe, giving them greater access to one of the fastest growing car markets in the world," Merrill Lynch analyst Stephen Reitman said in a note to clients.

The total cost of the Indian project was not yet set, Ghosn said, adding it would be "much lower than the rumoured $1.0 billion". He said the plant needed to have a better return on investment than Nissan's plant in Ghangzhou in China.

Mahindra managing director Anand Mahindra said the site of the new plant was as yet undecided and he would return to the negotiating table with two short-listed states about further concessions, especially if Nissan were to join too.

The new assembly plant will build the no-frills Logan car and its derivatives for the local Indian market. Renault will also build a power train factory. Production will start by mid-2009 with an initial capacity of 300,000 cars per year.

Mahindra said his group aimed to make the new site a platform for exports of Mahindra branded cars and he also talked about selling other Renault brand cars in India in the future.

"India is one of the fastest-growing markets which offers significant opportunities for profitability," Ghosn said.

He said the plant would attract suppliers and added that parts in India where 35 percent cheaper than in Europe or Japan.

Renault dealership in Argenteuil, near Paris, to mark the government's economic plan to aid the French automobile industry January 6, 2009. Since December 2008, car owners with vehicles 10 years old and over receive a 1000 euros bonus when they trade in their present car and purchase a new, environmentally friendly one

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