Renault to produce new electric car in Turkey

The 63rd Frankfurt Motor Show opened its doors yesterday with an official ceremony attended by German Chancellor Angela Merkel, along with Turkish Industry and Trade Minister Nihat Ergun and State Minister for Foreign Trade Zafer Caglayan. During the show, which lasts through Sept. 27, major automakers from across the world will showcase new environmentally friendly models. Speaking to reporters, Ergun said they hope to raise Turkey's auto production to 1.5-2 million cars annually, adding that Turkey is emerging as one of the most competitive countries in the world automotive sector. On a tax break on auto sales due to end soon, Ergun said it had helped boost domestic auto sales, hinting that they might extend it for a few more months. "As of the end of September we will make a new decision," he said. "We will decide whether or not to extend the tax cut, or at which rates, based on an assessment by the Economic Coordination Board." He also said the province of Bursa would be the production center for an electric version of leading French automaker Renault's Fluence. He said Renault would start producing the car in 2011, adding that this would be a major boost for Turkey's auto sector. Commenting on Renault's decision to base the production in Turkey, Caglayan said this would make Turkey a center for making electric cars and help draw similar investments.