Recession bites deep and Renault are withdrawing five models of car and dropping one third of dealerships in the UK. Sales plumetted by 29 percent this year.
Here is the story, as reported by Reuters:
Dec 19 (Reuters) - Renault SA will withdraw five models from the British market and slash the number of authorized dealerships by one-third in response to plunging sales and a weaker pound, a company spokeswoman said.
France's second-biggest carmaker will stop taking orders for vehicles including its Espace people-mover, Laguna mid-sized car and Kangoo passenger van in February, Caroline De Gezelle said on Monday, confirming a report by online trade publication Autocar. The company will also cut about one-third of its 190 dealerships, she said.
"The decision is a result of the economic crisis," De Gezelle said. The pound's weakness against the euro is "part of the difficulty we're facing in the UK."
The pound has tumbled 16 percent against the euro since the end of 2008, squeezing the profitability of British sales of vehicles assembled in France with euro-denominated production costs.
The partial withdrawal from the No.3 European auto market follows a 29 percent plunge of Renault's January-November registrations that reduced its market share to 3.5 percent, compared with 4.7 percent in the year-earlier period and 7.6 percent for the full-year 2002.
Other models to be dropped from British showrooms are the Modus compact minivan and Wind roadster, the company said. Its top British sellers, the Megane compact and Clio mini, will remain on sale. (Reporting by Laurence Frost; Editing by Elena Berton)
* Partial UK withdrawal follows 29 pct sales plunge
* Renault spokeswoman blames weak pound for decision (Adds spokeswoman's comment)
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Overpriced is the main reason for the decline, & that goes for all cars.
I don't think it's a case of the cars being over-priced, as you can get hefty discounts.
People just can't/won't spend money on cars just now.
You can hardly expect manufacturers to reduce their prices until people buy, that would be business suicide.
They can only reduce their prices so far and hope customers come back.
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bowfer says...
I don't think it's a case of the cars being over-priced, as you can get hefty discounts.Only if you're good at haggling mate, which many people I know aren't.
And yes, I include myself there as although I'll get what I'd call the "standard" (ie: not real, tacked on to make the buyer think they are getting a discount or bargain) amount I wouldn't get anywhere near the amount a good haggler will.... leaving the question of for the same car and same method of payment, why should one Buyer pay more than another?
It's something that should be made uniform across Dealerships but due to the franchised nature it'll never happen.
Jimbo : oŽ
"There's that word again... is there a problem with the Earth's gravitational pull in the future?"
can give you two stories about Renault sales/service...
1. In 2002 i was in the market for new car, and settled on a diesel Renualt Clio 1.5Dci... i searched using the interweb, and found a garage in Surrey called Wilsons in Epsom (who may dad had bought several cars from in the 70's), i saw the model spec i wanted Diesel, 3 door, Cd Player, Thatcham cat 1 alarm, and got a price... this included delivery.
I went to the local dealership to me at the time in Newton Abbot... after being ignored in the showroom for nearly half an hour i went and demanded to see the sales manager, he was embarrased to say the least and sent a salesman straight out to me. I told him what model spec i wanted, he quoted me £2000 more than the dealership that would deliver. I asked why, and he claimed they would be selling a grey/parallel import... i explained i doubted that as it was right hand drive, and all their cars built in France.
I then said ok, i will buy from Wilsons, but that i would be back to Blacklers for servicing/warranty work if required, he then told a WHOPPER, telling me that it could only be done by the supplying dealership.
I told him if he couldn't match the price i would walk... which i started to do... as i exited the showroom, a very flustered sales manager ran after me, and asked me to come back in.
It transpired his conversation with me had been overheard by the SalesManager and Franchisee Director, who was furious, in summary he insisted i bought the car i wanted, at the price i had been quoted, by the other garage.
The salesman i never saw there again!
2. First MOT, a week before the third anniversary was up, i took the car back to the same dealers for its MOT, to my surprise when i got back to the service desk i was told it needed at least £1000 speding on it, £800 of this for new diesel injectors, the car only had about 15k on the clock.
I told them to go ahead and do the work, the service/parts man was looking exceedingly pleased with himself (probably earnt his bonus he thought)... that was until i pointed out it stil had a week left on its WARRANTY... the look on his face priceless, i honestly thought he was going to cry!
When i collected the car, i asked to see all the parts that been removed...
Never went back to them, DONT TRUST MAIN STEALERS!!!

This item was edited on Wednesday, 21st December 2011, 17:30
I myself have never bought a Renault again since the late 80's when my Renault Fuego dash caught fire on the motorway (ironically names Fuego =fire in spanish),
It was the rear heater switch that decided to burn. I manged to dig it out the dash with a screwdriver before the whole car went up. (I kept loads of tools in that car for on the move repairs, it was that unreliable).
I found out later the cars electric loom was made of plugs and sopckets that had no locking connection, so fell out or partly disconnected due to car vibration, resulting in loss of many electrics and creating hot spots of high resistance, ie, fires.
On a final note, I had enough of that car, as I had the fire, the loss of two electric windows, loss of a motorized sunroof, and the complete LHS rear cluster of lights at the back blackedout. And finally the gearbox was hanging by only one connecting support, so when you moved forward the gearstick jumped.
I traded it in for a Toyota Celica for reliability, handed the hellish Fuego in expecting my new car, but was told "your new car will be ready in four hours after inspection checks sorry", "I will get someone to run you back to your work", and guess what car turned up for that, yes my old Feugo.
The mechanic did not know it was my former car and drove onto the road with me as passenger, and the dam thing brokedown halfway to my work. The guy said what a piece of junk and I got out and said "I will make my own way on foot, bye" 
Never saw that car again, thankgoodness !
This item was edited on Wednesday, 21st December 2011, 18:01
I also had a Fuego from new. Nothing but trouble. Drivers window stuck down on the Friday of a bank holiday. At the time it was parked on the road, so 3 very nervous days. The hatch window broke when I closed it down. Many other things went wrong & I said I would never buy another Renault & haven't.
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Only if you're good at haggling mate, which many people I know aren't
Sorry, that's not the case at all.
Check any newspaper or the internet and you'll see discounted cars left, right and centre.
No haggling involved there.
With regard to Renault, we had a new Clio 1.5dci from 2006-2009
The most reliable car we've had, not a single thing went wrong.
It was also group 3 insurance, did 60mpg and cost £20 a year roadtax.
We used to laugh about how cheap it was to run.
Also very well built and stood up to kids much better than the Fiesta that replaced it has.
Now there's a piece of crap....
This item was edited on Friday, 23rd December 2011, 10:40
With regard to Renault, we had a new Clio 1.5dci from 2006-2009
The most reliable car we've had, not a single thing went wrong.
It was also group 3 insurance, did 60mpg and cost £20 a year roadtax.
We used to laugh about how cheap it was to run.
I cant disagree, the Renault Clio has never let us down, hence i have kept it since 2002, and has cost me literally nothing except servicing, tyres, and diesel... and its only £30 to tax and less than £100 fully comp...
Its the Main Stealers that are the problem... funnily enough i am considering a Dacia Duster next year when they are launched in the UK, and that is pretty much a Renault, built in Romania though!

This item was edited on Friday, 23rd December 2011, 15:09
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funnily enough i am considering a Dacia Duster next year when they are launched in the UK, and that is pretty much a Renault, built in Romania though!
The young bloke on 5th gear loved the Dacia.