Renault to create Europe's biggest EV plant

Renault has announced plans to join three of its factories in northern France to form one giant electric car-making facility that will produce more than 400,000 vehicles a year by 2025.

The giant new EV plant, dubbed Renault ElectriCity, will employ nearly 5000 workers when it reaches maximum capacity in 2025, thereby slashing production costs significantly.

Despite the overnight announcement it plans to build Europe's biggest EV factory, Renault says it remains committed to producing fewer vehicles more profitably under new boss Luca de Meo.

According to industry commentators, the new ElectriCity plan is another example of Renault playing catch-up with fellow European brand Volkswagen, which has taken an early lead with the launch of its new family of battery-powered ID models.

One of the biggest hurdles to ElectriCity isn't the physical joining of all three current plants but negotiating with unions over new working conditions for the new plant. Some workers at the current Renault factories are said to be paid for 39 hours but work only a 35-hour week.

The three current factories include the Douai car assembly plant, the Ruitz transmission factory and the Maubeuge facility that currently builds commercial vehicles. All three will be overhauled for electric car assembly following a significant investment.

Instead of expanding all three, Renault will actually shrink some of the plants in a bid to boost efficiency.

Once it's production footprint is reconfigured, the car-maker will build the next-gen Megane E-Tech Electric, the R5 retro reboot the and R4 SUV on the same production line.

As part of its efficiency drive, Renault's is reportedly aiming to reduce manufacturing costs to between three and four per cent of each vehicle's selling price.

Currently, EVs are said to cost around 45 per cent more to produce than an equivalent combustion-powered petrol or diesel model, and costly battery packs are responsible almost entirely for the discrepancy.

Luciano Biondo, the head of Renault's new megafactory, said: "I am very proud to have contributed to the creation of Renault ElectriCity, a symbol of Renault's know-how and technological innovation, and to participate to the enhancement of the economic and social attractiveness of Hauts-de-France in Europe.

“This agreement, signed with all the trade unions, is proof that the commitment of employees, constructive social dialogue and a strong local presence are key to setting up a robust and attractive industrial model."