The Slovenian subsidiary of the French car maker Renault will start producing a redesigned version of the electric Twingo model in 2026 under a memorandum of understanding signed by the government and Renault.

Initially, the Novo Mesto plant Revoz will put out 150,000 cars annually.

The value of the investment has not been disclosed but the commercial broadcaster POP TV reported that Renault planned to spend at least half a billion euros in Novo Mesto and create 800 new jobs, which would make it the biggest foreign investment in Slovenia to date.

With the memorandum, Renault can count on the Slovenian government to support the investment.

The document was signed in Novo Mesto on 24 July by Prime Minister Robert Golob, Revoz chairman Jože Bele and Herbert Steiner, Renault Group vice president for passenger cars and Renault brand industry.

New era for Revoz

The step marks a new era for Revoz, one of Slovenia's largest companies, which has been building Renaults since 1973.

Revoz assembled Renault's Clio, Twingo and electric Twingo models until recently, with production of the old Twingo and the electric Twingo ending this year.

Only the Clio 5 is assembled there at the moment in a single shift, while the memorandum will allow Revoz, which has currently 1,400 workers, to keep car production.

Bele said at the signing ceremony that the first goal is to keep the current number of workers, while new jobs are planned to open, largely high added value ones.

The memorandum provides for stable operations and progress, in both digitalisation and AI and in decarbonisation and sustainable mobility, he added.

Strategic investment

The government identified the investment as strategic and expressed its strong will to support the production of electric cars at Revoz.

Talks started a year and a half ago when Revoz's future was rather uncertain, with the number of shifts dropping alongside the number of workers, said Golob.

"Today we've signed a commitment by Renault and the government to jointly develop a production line for a new electric car at this site," he said.

The memorandum also covers key infrastructure, including an expressway linking the southeastern Dolenjska region with the motorway network.

Figures yet to be disclosed

Economy Minister Matjaž Han declined to discuss how much the government would contribute to the Twingo investment.

"The state is ready to provide funds, perhaps €20 million, perhaps €30 million, in line with the investment law," he said, adding they had not had "easy negotiators" on the other side of the table.

The memorandum also includes a commitment to keep staff levels. Bele said that while production volumes will be slightly reduced next year, there will be no staff cuts, as the Clio, which Revoz will be assembling until new Twingo production is launched, is selling very well.

Renault's investment entails investments in equipment, in developing the production process, decarbonising the plant and preparing it for sustainable mobility, and employee training.

Renault presented the concept of the new electric Twingo model late last year.

Stainer said the Twingo E-tech electric is a response to decarbonisation, air quality, affordable electric mobility and the re-industrialisation of Europe.

Bele added that the new model is also a direct response to the needs of the European car market. The small urban city car is expected to be available for €20,000.