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Renault UK expects to return to profit before end of 2013

Darren Payne

Seven months after Renault UK announced a model and dealer cull, it says everything is on track for a return to profitability by the end of 2013.

Renault discontinued the Kangoo car, Modus, Wind Roadster, Laguna and Espace in the UK from February, while the dealer network has been reduced from 190 to around 135.

The business has been restructured and it has reduced its reliance on less profitable elements of the fleet market such as daily rental and Motability.

Sales director Darren Payne told AM sister title Fleet News: “We’re pleased with our performance. We’re on budget for 2012 in terms of our share and profit aspirations, the structure of our network and our product portfolio.”

Staff numbers have been reduced by a third and, while Payne says it hasn’t been easy, he stresses that it has enabled them to achieve the results they we’re looking for.

As of the end of June, it had a 1.85% share of the overall car market and 1.47% of the fleet market – down from 3.58% and 3.66% in 2011, according to SMMT figures.

Payne said: “We’re still very much in the fleet sector; we just choose not to be as strong in certain channels.”

To read the full story head to the Fleet News website.

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