PARIS (Bloomberg) -- Renault is considering building engines in Morocco to serve growing production in the country and to cut costs.
Chief Competitive Officer Thierry Bollore said an engine factory would make sense, given that Renault has capacity to build 400,000 vehicles at plants in Tangier and Casablanca.
"We are thinking about it, but we first need to have a stronger supply chain on the ground," Bollore said Thursday at the auto show here.
Renault builds the Dacia Sandero hatchback in Morocco and has threatened to shift more production there from the no-frills brand's home in Romania, where unions are demanding higher wages.
Renault's nearest engine plant to Morocco is in Spain.