Renault to close Scots dealerships 19 | 12 | 2011
RENAULT, TRADITIONALLY ONE of the best performers in Scotland, is to kill off four significant models from its range, including the once strong-selling Laguna.
And the French manufacturer, in a bid to make its UK operation profitable again, will also reduce its dealer network across Britain by a third next year. A number of dealerships in Scotland will close.
The 190 dealer network will be reduced to "around" 135. Some of the closures will be within the Renault Retail Group but Renault was unable to quote an exact figure as discussions are ongoing.
It's understood around 50% of Renault's UK dealer network has been running at a loss.
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,” Sybord said.
Renault reveals price of electric Twizy
The slashing of the Renault range will happen in February. The drastic action will account for the complete Laguna range, including the coupe, plus the Wind roadster, both variants of the Modus and Espace and the Kangoo and Trafic passenger versions.
“We have a corporate target to be profitable in all the countries that Renault sells cars and that demands tough action in the UK,” the company said.
It's worth noting that the cutbacks affect only the UK — all other European markets will continue to sell their existing ranges — even though markets like Spain and Italy are hugely down in 2011.
Renault will, however, use newly freed-up resources and marketing funds for a major push in electric cars in 2012.
The Twizy urban runabout (pictured), along with the Zoe supermini and Fluence EV, will be launched in the UK next year. Zoe though won't arrive in Renault's surviving Scottish showrooms until the autumn.
Two new Renault Gordinis hit the streets
But perhaps what is more crucial for Renault is that its launch of the fourth-generation Clio is the success it is hoping for in the UK.
Clio sales have dropped significantly in the UK: in fact they're down 10,000 in the past 12 months, from 31,000 in 2010 to just 21k this year.
"We’re not dwelling on what’s happened," Renault said. "We’ve got some very important cars and launches in 2012 that make it a very significant one for us."
Renault's bid to win back customer confidence and loyalty will also see it launch a beefed-up its standard aftersales package which will include a four-years/100k mile warranty, four-years/48k servicing and four-years roadside assistance.
Read our roadtest of the Renault Wind Roadster
Keep up-to-date with all the latest news by following us on twitter.com/scotcars
Jim McGill