Renault said it decided to assign the production to the Flins plant after having recently signed a new labour contract with its union representatives that allows the carmaker to increase the competitiveness of its French plants.

Under terms of the agreement, Renault is committed to increase production volume of its French plants by 180,000 vehicles, to 710,000 vehicles per year. The renewal plan calls for 100,000 cars to come from Renault’s new products and 80,000 vehicles from partners.

Carlos Ghosn, CEO of Renault Group, said: ‘This announcement is good news for Flins, but also for all Renault plants in France. The efforts committed by our employees under the Renault Agreement are beginning to bear fruit. Renault is in line to fulfil its commitments.’

Micra production will begin in 2016 at an estimated annual volume of 82,000 vehicles. The plant also produces the Clio and ZOE.