Renault UK managing director Thierry Sybord has said he will pull its budget brand Dacia out of the UK rather than discount its already low model pricing.
Romanian Dacia will launch in the UK next year.
"It’s a key part of the Dacia brand: transparent value-for-money," Sybord is quoted on autocar.co.uk today. "And we won’t kill the brand for Britain. I believe that buyers in the UK will respond to the simplicity of buying a Dacia — but if I’m wrong, we will just pull out."
Every Renault dealer in the UK has taken on the Dacia franchise, and will represent the brand either by a specially branded ‘Dacia Corner’ in their showrooms or with external ‘Dacia Boxes’ on the forecourt.
But cars will not be kept in stock in the UK, but each car will be imported on the basis of an individual customer order, with lead times of between three and six months expected.
For that reason, and because Dacia orders will not count towards dealer sales' bonuses won’t be necessary.
It isn’t for Renault to rule outright on how dealers should sell Dacias, and a spokesperson did admit that, with more richly equipped cars, those dealers will have a little bargaining room. But the same source confirmed that dealer margin on entry-level Access models is very low – a deliberate tactic to motivate them to ‘up-sell’.
There are also special sales rewards for cars sold with extended five and seven-year warranties.
Renault UK is aiming to secure one per cent of the UK new car market with its Dacia brand in 2013 - just short of 20,000 cars.
There are already 1,700 confirmed orders for the Duster compact SUV.