The new Renault Twingo is set to be built alongside the Clio at the Revoz plant in Novo Mesto, Slovenia.
That is according to the Slovenian Press Agency, which today reported that the nation’s government has signed a memorandum of understanding with Renault to build 150,000 new Twingos per year at the plant, starting in 2026.
The move means Revoz will be able to sustain its existing outputs following the cancellation of the previous Twingo – which was recently discontinued after 10 years on sale – plant CEO Jože Bele is quoted as saying. Bele added that the move will protect 1400 jobs.
Renault UK declined to provide further details.
The new Twingo will have one of the shortest lead times between concept and production of any Renault yet, having been unveiled in November 2023. The final car is due to be shown in late 2025, a gap of just two years.
Renault recently inked a deal with an unnamed Chinese manufacturer – understood to be a supplier rather than a car maker – to help it accelerate the development programme. Renault Group chief Luca de Meo previously told Autocar that the partnership will be crucial in achieving the tight schedule, as well as finding new cost efficiencies.
It is possible that the decision to build the Twingo in Europe rather than China, where labour costs are significantly lower, was influenced by the European Union’s recent introduction of tariffs on Chinese-built cars.
These tariffs will be finalised by November, following months of negotiations with the Chinese government. In the meantime, SAIC (which owns MG) has to pay an extra 37.6% on the wholesale price of EVs built in China. BYD is being charged 17.4% and Geely 19.9%.
The move also affects eGT New Energy Automotive, which builds the Renault Group's Dacia Spring. It is charged a tariff of 20.8%.
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Considering Renault used to make the R5 in beautiful Slovenia, this decision is logical and re-shoring production can only be a good thing for European industry -especially given that shipping costs are very variable and the RMB exchange rate could fluctuate considerably.
The curse of Brexit strkes again!
One considers that putting up 19-38% tariffs on Chinese-made cars is very similar to the protectionist mindset of which the Brexit lot were accused, this is an interesting outcome. Ironically, the UK wasn't going to levy such tariffs, not being beholden to Brussels anymore, and EV cars are expensive enough already -but Sir Toolmaker may have other ideas...