21 December 2011

Ian Plummer, currently commercial director at Renault UK, is to leave the company at the end of the month. Auto Retail Network understands that his role will be taken over on an interim basis by Bob O’Reilly, currently head of franchising and network development.

The news comes two days after Renault announced plans to slash its dealer network in the UK and drastically reduce its model range in an effort to become profitable. But company sources were keen to emphasise that Mr Plummer (pictured) is not a victim of the cuts.

“He is leaving as a matter of his own choice,” we were told. “There is a new opportunity for him.”

Prior to taking on his current job, Mr Plummer was managing director of Renault Retail Group and he has strong connections with the retail side of the industry. Further senior management changes are anticipated within Renault UK as the business is reshaped.

Renault dealers were given details of the new business plan at a conference in Birmingham last Thursday and termination notices for the entire network will have been issued by the end of December. These give 12-months’ notice under the ‘network reorganisation’ rules and the plan is to have the new franchise network in place by January 2013.

Under the reorganisation, the number of main sales points will be cut by around 30% from 159 currently to nearer 135 and the number of sub-dealerships (retail dealers) will be cut by around two-thirds. According to the Auto Retail Network Franchising Report 2011, Renault had 61 retail dealerships at the start of this year.

The company has already started ‘one-to-one’ discussions with favoured partners and it is believed some have already been told informally that they are safe. Some of the terminated dealerships are likely to be offered authorised repairer status as the company seeks to retain a geographic spread of service points.

At the same time, Renault is scrapping five of its current model ranges (Kangoo car, Modus, Wind Roadster, Laguna and Espace) and rationalising the remaining models by deleting entry level variants. The company admitted it has only sold around 2400 Lagunas this year.

The remaining model ranges (Twingo, Clio, Megane and Scenic) will be offered with a four year warranty and servicing package as standard from February 1, 2012 along with an optional four year finance plan.

There are no changes to the light commercial vehicle programme and the Pro-Plus network which focusses on business sales will be expanded to around 50 outlets by the middle of next year.

By 2013, all Renault retailers will be expected to sell three brands: Renault, Renault ZE – the range of electric vehicles and Dacia – which will be launched late in 2012. Dacia will be sold on a value-for-money, no haggle basis.

Read full details of the new Renault strategy (and reaction) in the January issue of Auto Retail Bulletin
 

Tags: Auto Retail Network, Renault, Renault Retail Group