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Renault and Volvo to end joint distribution agreement

Renault and Volvo Cars have decided not to renew the importer agreement between the two manufacturers once their current contract expires on December 31, 2007.

From 2008, Renault will establish its own subsidiary for the distribution of its vehicles and spare parts and provision of aftersales services in Sweden, Norway, Finland and Denmark.

Renault wants to retain the existing dealer network in the four markets for the sale and servicing of Renault cars and LCVs.

Since 1982, the distribution of Renault cars and LCVs, parts and aftersales services in the Nordic countries have been carried out by Volvo Cars, through a network of dual-branded, Volvo-Renault dealers.

This partnership has seen Renault sales rise from 6,500 units in 1982 to more than 35,000 in 2005. In total, 500,000 new Renault vehicles have been sold in the four Nordic markets during this period. The most recent renewal of the importer agreement between the two manufacturers was in 2003, for a period of five years.

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