The Renault Modus, which is based on the same platform Nissan used for its Micra, will be produced in Spain.

The high volume car is set to become a common sight on the roads and Renault chairman Louis Schweitzer said he hoped the new model will help fuel profits next year.

�We will have lower costs thanks to our alliance with Nissan, a renewed model range and profits from outside Europe, therefore our results will grow,� he said.