Renault reveals next generation Clio

Renault has been focusing on product quality and service in its bid to win back customer confidence, but the next challenge is turning that into stable market share.

Strategies include focusing on product-based selling rather than discounts and altering perceptions of the brand. At the end of 2011 it announced it was to cut its network by a third and will also be cutting the Laguna, Modus, Wind, Espace and Kangoo car from its model range from February 1.

The 190 dealer network will go down 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.

The move is aimed at returning the French carmaker's UK operations to profitability as AMi understands 50% of the dealer network has been running at a loss.

Effort is also being directed at retaining more customers after three years to generate greater parts and servicing income.

Stabilising market share and building brand image may involve selling fewer cars, but with a greater focus on profitability as Renault drives towards its challenge of introducing a raft of electric vehicles. Market share has fallen annually since 2010 - a not unexpected result, the manufacturer says, calling it a "strategic move". 2012 saw a new Clio, more efficient engines and a push on electric vehicles, the Z.E range.

Renault has also launched a dealer star rating to allow customers to share their experiences at each of the French brand’s dealerships online.

Note: Manufacturers administer the franchised contracts for cars and LCVs in different ways. Broadly, for some the contract to sell cars and LCVs is managed through a separate dealer contract. For others one contract covers both vehicle types.

AMi seeks to acknowledge the difference and reflect it in the count of each dealer groups total franchised outlets (franchised businesses) and sites (locations).

Renault administers car and LCV sales under a single contract.