Renault boss warns of reduced dealership numbers

by GD on Tue Oct 14, 2008 8:49 pm

Renault UK's managing director Roland Bouchara has warned that the economic slump will result in an industry-wide reduction in UK showroom numbers and an increase in smaller outlets with fewer staff.

Bouchara was speaking at the Paris show, where the company launched the third Megane and coupe versions of the bigger Laguna.

"If the situation is going to continue this way, and it is difficult to see any improvement at this stage, the network has to be adapted. Dealers will be resized. Generally, there will be less outlets overall," he said, insisting this trend would impact on all franchises.

Bouchara believed Renault had achieved comfortable stock levels and that its January 2008-launched ‘Renault Twenty' plan to reduce dealer distribution costs had proved successful.

He said the latest Megane, launched in five and three door versions, with the latter marketed as a coupe, would still build on volumes achieved by the outgoing bustle backed models.

The range would be further expanded with cabriolet and Scenic compact people carrier derivatives next year.

In 2009 the company will also bring in three door Bebop mini estate versions of its remodelled Kangoo van-derived estate. Sales are expected to start next Spring, and Bouchara described it as a niche product.

He confirmed that Renault had been hit by a big fall off in light commercial sales, until recently an area of success for the company, but in 2009 would be launching a replacement for its Master panel van range, which is also marketed with Nissan and Vauxhall badges.

However, he said that the company was unlikely to start right hand drive sales of its Romanian made Dacia cars and light vans next year.

These are being sold in other Western European markets, but Bouchara said Renault would concentrate its UK activities next year on launching products