Renault undertakes model and dealership cull

Renault undertakes model and dealer cull

In a radical move to establish sustainable future profitability Renault UK is culling the number of dealerships and cutting loss-making vans and cars from its 2012 line-up. The light commercial side of the business comes out relatively unscathed with just the Kangoo Compact falling under the axe. Over on the passenger cars, however, it’s a very different story with the Espace, Grand Espace, Kangoo, Modus, Grand Modus, Scenic and Wind falling by the wayside.

The expected passenger car sales shortfall will be countered to a certain extent by the introduction of three all-electric Z.E. models — Fluence, Twizy and Zoe — to run alongside the Kangoo, on sale since November, by the end of 2012. This will be accompanied by a UK-wide roadshow and advertising campaign.

Renault will also be launching the low cost, high value Dacia brand to the UK with the Duster and Sandero ranges becoming available from January 2013. There are no plans to sell any Dacia light commercials in the UK.

Dealerships don’t come out unscathed from this massive shift in Renault UK’s business plan. They will be cut from 190 to around 135, but the reach of the business user-focused Pro+ network will be expanded from the current 23 sites to 52 by the end of 2012.

From 1 February 2012 all Renault vans and cars sold to large and small fleets will include the new 4+ package. The former get a 100,000 mile/four-year warranty and four years roadside assistance while the latter also benefit from four years of free servicing. Both have the opportunity to take up four-year Renault Finance offers.

Renault will be continuing to focus on developing the chassis cab and conversions side of its LCV business with plans to take eight per cent of the market in 2012, rising to 11 per cent by the end of 2013.