Tuesday, 20 December 2011
Renault has issued 12 month termination notices to a third of its network as part of a major overhaul of its UK business following a halving of sales in the last five years. It will also discontinue five model lines from February 2012.
Renault said around 55 showrooms will be closed reducing its network headcount to 135 sites by the beginning of 2013. The affected showrooms have been identified mostly on their geographical locations. Those most affected will be retail only sites, which tend to be run by owner-operators, where around 68 per cent of the sites are likely to go. Renault is also having discussions with large dealer groups regarding which territories require representation from 2013.
Renault confirmed some dealers will be expected to relocate to smaller premises to serve some geographical locations or will be encouraged to dual franchise.
The brand has also taken the unprecedented step of deleting several under performing car lines with all Laguna, Espace, Wind and Modus models being phased out from 1 February 2012. The Kangoo car will also be chopped but the van version will be retained. Trim levels will also be slimmed down to simplify line-ups.
On the same date Renault will launch its 4+ servicing package providing four years/100,000 mile warranty cover on all new cars, which will include free servicing and roadside assistance. Dealers will also offer a four year finance package.
Thierry Sybord, Renault’s UK managing director, said the overhaul will see sales dip in 2012, before rallying in 2013 when all dealers in the slimmed down network will be selling Dacia, it’s budget brand, and its ZE electric vehicles. 2013 will also see the launch of the all-new Clio, Renault’s best selling model.
“This has not been an easy decision to make. We have tried to stabilise the business but from a profitability point of view it doesn’t work for Renault or the network.
“2012 will be our transition year before we see growth,” he said.
Dealers were informed of the changes at a conference held last week in Birmingham.
“There were two types of reaction. The big groups were positive ; they were expecting such an action plan and said it was brave. Some were not positive. Retail dealers were shocked,” he said.
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Renault would have sold more Espaces if they had actally bothered. 499 Is pitifull considering th need for such vehicles in industries such as Chauffeuring. This is shortsighted and shows a disdain for existing clients.
With potentialy less Renaults on the road this will hit the Breakdown Recovery & Repair industry significantly.
How right you are and what a relief for many.
as with most things in the uk bad news is everywhere and once this hits the news the repercussions will be far reaching, forget the problems elsewhere in the world,the motor trade needs a complete overhaul, from price structuring to servicing and parts, the cash cow that once was the english road user cannot afford ridiculously high service bills and the poorest quality, forget the bonus system, pay a fair wage for a fair days work,drive the costs down,the ridiculed daewoo company were nearly there with their approach to motoring,no high paid dealer principles no salesmen, this has a place, bearing in mind that this part of the trade is usually paid a fortune and knows next to nothing and to add salt into the wounds they would come and ask for advice from us technicians, we need some one like the type of sir John Harvey Jones or sir Richard Branson to get on board and rebuild the motor trade, it is unsustainable and unfair.
Ditching small dealers, who usually own their own premises, have lower overheads and provide the best customer service, for the dealer groups with their expensive “glass palaces”, poor customer service, and for the most part frankly don’t care what they’re selling and look no further than last month’s profit figures.