Renault UK to Downsize by a Third in 2012

Jan 3 2012

A bold plan to lift Renault UK out of the red in 2012 has been announced by the French car manufacturer.  The company’s UK dealership network will be slashed from 190 to 135, and some of the less popular models will be discontinued from sale.  Despite the availability of cheap car loans in the UK, Renault has been struggling to get into the black for some time on these shores.

According to Renault UK’s Manager of Product Affairs, Mike Gale, Renault-owned dealerships in major cities should emerge unscathed from the cull, with franchises being sent to the guillotine first.  However, the plan will change the Renault UK landscape, with around 70% of its retail dealers either shutting down or being converted into service or aftermarket providers by the end of the year.

The Renault models that you will no longer be needing car credit for in the UK include the Espace, the Laguna, the Modus and the Wind Roadster.  Kangoo cars will also be for the chop, although the Kangoo Van ZE will be reprieved.  The company, in fact, plans to roll out four new electric vehicles under the ZE brand in the UK during 2012.

Less profitable fleet businesses such as large, discounted fleet deals and the Motability range will also have to do without Renault, which is pulling out even though the car industry as a whole is relying on the corporate sector more heavily than ever before.  The company is hoping that the combination of its more popular models and the UK’s generally reasonable car finance arrangements will help drive the sale of new private cars bearing its brand name.

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