Renault will make new Clio model

French carmaker Renault has said its new Clio model will be built in both France and Turkey, calming fears that production would move outside France. The announcement came after French President Nicolas Sarkozy put pressure on the firm to keep building the model at its Flins factory outside Paris. Mr Sarkozy had said he had not pumped government money into carmakers for them to move production abroad. The French state has a 15 % shareholding in Renault. Government loans Renault chief Carlos Ghosn also said the Flins factory would be used to build a new electric car. "Renault is a French company, a socially responsible citizen... This is one reason we decided to produce [the electric car] in the Flins plant," he said. The fourth generation Clio is due to go into production in 2013. Last year, the French government lent French carmakers billions of euros to help them cope with falling sales during the economic downturn. The loans were conditional on the carmakers keeping jobs in France. Questions have been raised by the EU Competition Commissioner Neelie Kroes about whether these conditions restrict carmakers' ability to move their operations. "The French government could still feel the ire of the EU Competition Commission for its actions as it will be questioned [on Monday]," said Ian Fletcher, auto analyst at IHS Global Insight.