Renault builds French cars, right? Well yes, and no.

In what may shock cafe au lait drinkers and have them choking on their croissants, the next range of Megane hatches and sedans that are due to arrive progressively from mid-next year will most likely come from either Turkey (which assembles the current four-door sedan) or Korea (where the Koleos soft-roader comes from) [...]
The words ``Renault'' and ``comeback'' are often found in motoring stories in this country, accompanied by bold sales projections that have yet to be achieved.
But for Renault Australia, under quietly-spoken managing director Rudi Koenig, there's a recognition that the brand just hasn't done well enough to snare buyers who are shopping at the premium end of the Japanese market: the Mazda3, Mazda6, Honda Accords and Subaru Liberty, Forester and Impreza that are on buyers shortlists.
While Mr Koenig is happy with the foot traffic into showrooms, the rate of conversion of shopper-to-buyer after a test drive has slid from about one in four to about one in eight.
Overall, just 3191 Renaults left dealerships last year, representing a market share of just 0.3 per cent.
``Three thousand (sales) isn't enough to go forward,'' Mr Koenig said. ``Always to be a viable a viable business in Australia - because we are a high cost country/low margins, a market with 61 brands and 310 models _ means there's always discounting in the market.
Basically, Renaults built in France cost too much to be competitive in the marketplace against Japanese rivals.
So in order to increase sales volume, Renaults have to cheaper in the showroom. It means the next generation Renault Megane hatch and sedan will be sourced from various factories around the world. The sedan is most likely to come from the Turkey's Istanbul factory when it arrives next year and the hatch from the Korean Samsung Motors plant that assembles the Koleos.
The price point targeted is premium Japanese hatch ranges, so expect the next Megane to cost from about $22,000 to $27,000.
Mr Koenig is aiming as selling about 200 a month [...]

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