March 2, 2024

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Renault could cut UK models in no deal Brexit profit drive

New Groupe Renault CEO Luca de Meo has warned that some products in the Renault vary could vanish in the want to accomplish profitability for the Uk subsidiary.

With the likely for a no deal Brexit that would convey additional tariffs to the Uk auto sector, plus any currency swings that make it much more costly to do organization in the Uk, Renault, like lots of auto makers, could be pressured to slim down its vary to the products that make the most money.

Speaking to Auto Categorical, de Meo said, “We are wanting at any sector and any products which is not doing enough money and we’re questioning that.

“I’m not likely to inform you that we have to pull out of the Uk – it’s this kind of an crucial region – but we have to have to make hundreds of micro choices that will permit us to get back again to a specific amount of profitability. Without cash, we have no long term. We have 24 months to cross the desert economically, so I have to make some choices.

“In some situations for the Uk precisely, I may possibly have to make some choices on some products and some versions – it’s standard.”

Even though Renault products this kind of as the Espace and the Talisman are not offered in the Uk, they could be joined by other products, or distinct trim degrees, that Renault Uk struggles to make money on.

Nonetheless, which is not likely to include the Clio and Captur, the brand’s two most significant sellers and recent Award winners in the Auto Categorical New Vehicle Awards 2020. “In the situation of the Captur and the Clio – the cars and trucks wherever we actually do volume and are aggressive – you will be shocked by the margin we do on those cars and trucks,” said de Meo.

Dacia is established to continue to be in the Uk, though, whilst the new, all-electric Dacia Spring has not nonetheless been confirmed for the Uk. “Dacia is a brand that is actually doing effectively, not only commercially but also in conditions of profitability, said de Meo.

Nonetheless, he also warned that Dacia costs would have to increase marginally to go over the prices of meeting the latest emissions benchmarks. “In Dacia we will likely have to have to set some euros to cope with these Euro Seven [emissions benchmarks] that are coming,” he said.

Browse about Renault’s long term strategies for the Alpine sub-brand listed here…