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Tough time for dealers

Renault UK managing director Philippe Talou-Derible believes there will be “open warfare” if dealers decide to go head-to-head for business after the scrapping of the location clause this month.

He predicts that most will not take up the opportunity to open additional delivery and sales-only points, and adds that with the market toughening following the introduction of the revised Block Exemption regulations in 2003, “most dealers could probably want to turn back the clock”.

“We are unlikely to see many changes because the market today is tougher for dealers. They already have parallel channels to fight; if they fight against each other, it will get even tougher,” Talou-Derible says.

“None of our dealers has declared an interest in opening a delivery point past October 1, and I don’t expect it will happen.

“It’s the last thing we need for the network and for customers because competition is already intense enough.”

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