Renault Maubeuge: the most competitive plant in France

21 Dec 2018
Automotive, Investment
Estimated reading time : 3 minutes
Renault Maubeuge: the most competitive plant in France
21 Dec 2018
Automotive, Investment
Estimated reading time : 3 minutes

Renault Maubeuge: €450M in investments to increase its production

Maubeuge Construction Automobile (MCA), a subsidiary of the Renault Group, has been specialized in automobile assembly for nearly 50 years. A true point of reference in the automotive industry, Renault Maubeuge has become the center of excellence for light-duty commercial vehicles for the Alliance (the world’s leading automotive partnership, bringing together Renault, Nissan, and Mitsubishi). This is why the Renault Group decided to invest €450M there over the next 5 years and is planning to hire 200 employees. The investment aims to increase the production capacity of Renault-Nissan-Mitsubishi and further demonstrates the attractiveness of the region for the automotive sector. New vehicles will be produced there, such as the new generation of Renault Kangoo, including the electric version Kangoo Z.E. And all new for the Renault Maubeuge plant is the mid-2019 allocation of the production of a new commercial vehicle in France for its partner Nissan, the NV250. We heard from a plant employee who welcomes this news: “This will bring us more volume and investments, and it improves the longevity of our plant.” The Maubeuge site finds itself at the core of Renault’s “Drive the Future” strategy. In an electric market with strong growth potential, the Alliance is the world leader in electric vehicles, and the Renault Group leads the electric market in Europe. Renault’s electric vehicle sales grew by 38% in Europe, with a 44% increase in ZOE registrations and a 23.8% market share in 2017. Renault has also chosen France as an industrial base for its electric vehicles ( read the article) Renault states: “Accelerating our investments in France for electric vehicles will make our French industrial sites more competitive and more attractive. […] The Renault Group has the means to maintain its leadership in the electric vehicle market and to continue developing new sustainable mobility solutions for all.” MCA Renault: the most competitive plant in France The Renault Maubeuge plant, an expert in the field of light-duty commercial vehicles and electric vehicles, currently produces:

  • The Renault Kangoo
  • The Renault Kangoo Z.E.
  • The Mercedes Citan

With more than 60% of its production exported to 33 countries, MCA is Renault’s most competitive plant in France. In 2017, more than 130,000 Kangoo vehicles were sold worldwide, with the Kangoo ZE remaining the best-selling electric commercial vehicle in Europe. In terms of productivity, MCA holds the record for Renault, with no less than 100 vehicles produced annually per employee (Renault’s target was 60-90 by 2020). An objective that has been far exceeded thanks to instruments at the MCA plant that can monitor quality and react as quickly as possible if there is a problem on the production lines.

Hauts-de-France: #1 automotive region in France

The Renault Maubeuge plant is not the only one to reap the benefits of the Hauts-de-France ecosystem. For 50 years, automobile manufacturing has only increased. Hauts-de-France boasts seven manufacturing sites, including Toyota near Valenciennes, more than 550 equipment manufacturers, suppliers, and subcontractors, and nearly 2/3 of European manufacturers within a 500 km radius. More than 50,000 people work in the sector. For Olivier Silva, director of the Renault Maubeuge plant, “the strength of the Nord department also comes from staff motivation. I’ve worked at multiple Renault sites, and you can see that the people here really pour themselves into their work.” In 2018, three major investments were announced in the region:

  • €300M invested in the Toyota plant in Onnaing
  • €90M invested in the PSA plant in Valenciennes
  • €1B invested in Renault’s Douai, Maubeuge, and Ruitz plants

This enthusiasm for Hauts-de-France can be explained by its high population density, an available labor pool, more affordable property costs relative to the Paris region, an academic network of engineers and technicians, an established industrial tradition, and a prime geographical location in the heart of industrialized Northern Europe. Sources: Renault Group, l’Usine Nouvelle, la Voix du Nord, Le Figaro, Capital

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