Renault may use cheap parts in main models

Renault will not introduce the 'ultra low cost car' it is developing with Bajaj and Nissan into the European market but could use parts for its other cars. "We aim to learn as much as we can from the ultra low cost car," said Jean-Louis Ricaud, executive vice president engineering and quality at Renault.
"We will not take that car to Europe but we can use parts developed for that car in other models," he told Reuters in an interview on June 03.
Bajaj is an Indian motorcycle company, based in Pune, that is developing a $2,500 car with the Renault-Nissan alliance to rival the Nano from Tata and make cars affordable to people in emerging countries.
Ricaud said that this vehicle would have a maximum speed of 80 km per hour, and that some parts for it could also be used in other models to have the same functionality at lower cost.
For Renault, the development of the Logan no-frills car gave it the knowledge to make a vehicle at various plants around the world, sometimes using different suppliers.
Renault and Nissan currently have three joint production projects - at Chennai and Pune in India and Casablanca in Morocco - and are stepping up technological exchange while trying to avoid overlaps. Nissan provides the alliance with a V6 engine and Renault has more knowledge of diesel engines.
Renault developed a new type of four-wheel drive, available on the Laguna, while Nissan worked with NEC to develop electrical vehicle batteries and fuel cells.
"We have several joint projects with Nissan and we expect further technology exchanges with our partner," he said. Renault has a 44 percent stake in Nissan and the two companies have the same chief executive, Carlos Ghosn.
Ricaud said that the alliance had solved the technical problems related to the lithium ion batteries so that the Renault electrical vehicles, due in Israel in 2011, will can run at 100-150 km without recharging its 20 to 25 Kw battery.
Daimler is working on an electrical vehicle with parts supplier Continental and various other car makers have electrical vehicle projects, such as GM which on June 03 approved production funding for its Chevy Volt.
Ricaud said that the rise on the price of metals and precious metals would probably lead to a change in make-up for cars. "Basically there are three groups of materials - metals, plastics and fibres and depending on the price developments the mix of these three will change," he said.