Renault slashes UK operations and cuts model line-up

Renault is to cut no less than five models from its UK range, as the car maker attempts to make its operations in the country more profitable.

It will also slash its dealership network by a third over the next twelve months, to help improve profitability and avoid its UK operations needing to be propped up by headquarters.

From February next year, Reanult will cut the Kangoo car, Modus, Wind roadster, Laguna and Espace models; leaving sizeable gaps in its line-up. Its dealer network will be reduced to around 135 from the current 190 dealers. 

Managing director Thierry Sybord said that dealers were given the news at the end of last week and while reaction has been mixed, it is mostly positive.

"There is a general feeling that something needed to be done," he said.

Renault UK is also taking a number of measures to improve brand perception and residual values. Central to this will be the introduction of a ‘4+’ incentive – four year’s, 100,000 mile warranty, four years free servicing, four years roadside assistance and a four-year finance package.

The company is also pulling out of unprofitable fleet business for the time being.

Sybord  said that 2012 will be a year of "transition" for the car maker as it begins to launch four electric car  models under the Z.E brand name, culminating in the launch of the electric supermini, the Zoe at the end of the year. Also arriving at around the same time will be the fourth generation Clio, historically a successful car for Renault in the UK, and the launch of the Dacia brand.

All dealers will sell the Dacia Duster and new generation Sandero models when they arrive around November.

Sybord said: "During 2012 we plan to move the Renault brand up in terms of customer perception and bring in Dacia below it. Our electric vehicles, or Z.E. brand, will form a halo above."

Z.E. models will be the Kangoo Van, Twizy, Fluence and Zoe. Asked if the large models, Laguna and Espace, will eventually be reintroduced, Sybord said: "We will have to wait and see.

"It is difficult to compete in the D segment against Ford and Vauxhall so a Laguna in the future will have to offer something very different. I think that we can expect something very different with the next generation Espace and that will be worth looking at."

Source: Headlineauto.com

Author: Faye Sunderland, December 20th, 2011
Filed under: Renault | No Comments »