China has some of the world's strictest rules regarding the production of greenhouse gas-emitting vehicles, as it battles unhealthy levels of air pollution in its crowded cities
The automaker joins Volkswagen, Renault, Peugeot and Citroen over allegations they deceived customers over emissions produced by their diesel vehicles.
Renault said this month it would combine three of its plants in northern France into a new legal entity, Renault ElectriCity, that will produce 400,000 vehicles a year by 2025
The combination of these two partnerships with Renault ElectriCity will create nearly 4,500 direct jobs in France by 2030, while developing a robust battery manufacturing ecosystem in the heart of Europe.
The new company will include the Douai car assembly site, the Ruitz gearbox manufacturing site and the Maubeuge commercial vehicles assembly plant from Jan. 1, 2022.
Renault said it was aiming to raise the average turnover per unit of its Arkana model to 30,000 euros ($36,153), from 15,000 euros at present.
Renault is looking to produce fewer cars and focus on those with higher margins, and this strategy is starting to bear some fruit despite weak overall results.
Auto groups are accelerating an overhaul away from diesel and into electric cars, encouraged by more stringent rules on pollution and emissions and growing consumer demand for greener vehicles.
The pair could team up in some capacity to work on the next generation of Renault Master vans.
Demand for vans of all sizes has jumped amid the COVID-19 pandemic, fuelled by ecommerce deliveries as people have ordered more goods from home during lockdowns.
The regional STOXX 600 index closed up 0.05pc after a mixed session, while Germany's DAX rose 0.1pc, France's CAC inched 0.2pc lower and Britain's FTSE 100 fell 0.7pc.
Like its Japanese alliance partner Nissan, Renault is rowing back on an aggressive expansion plan pursued by Carlos Ghosn, its former boss-turned-fugitive.
Ghosn is currently beyond the reach of the Japanese courts and leads a comparatively quiet life, mostly in his Beirut home, though he recently released a book setting out his side of his case.