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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 motivation to realize profitability for the United kingdom subsidiary.

With the probable for a no offer Brexit that would bring additional tariffs to the United kingdom motor vehicle market, plus any currency swings that make it much more costly to do business in the United kingdom, Renault, like lots of motor vehicle makers, could be pressured to slender down its vary to the products that make the most funds.

Speaking to Car Categorical, de Meo mentioned, “We are looking at any marketplace and any product or service which is not undertaking ample funds and we’re questioning that.

“I’m not going to explain to you that we have to pull out of the United kingdom – it is this sort of an vital nation – but we need to have to make hundreds of micro decisions that will permit us to get again to a selected stage of profitability. With no income, we have no potential. We have 24 months to cross the desert economically, so I have to make some decisions.

“In some circumstances for the United kingdom precisely, I may have to make some decisions on some solutions and some versions – it is usual.”

Though Renault products this sort of as the Espace and the Talisman are not offered in the United kingdom, they could be joined by other products, or distinct trim ranges, that Renault United kingdom struggles to make funds on.

Even so, which is not probable to involve the Clio and Captur, the brand’s two greatest sellers and modern Award winners in the Car Categorical New Car or truck Awards 2020. “In the situation of the Captur and the Clio – the autos the place we truly do quantity and are competitive – you will be amazed by the margin we do on those autos,” mentioned de Meo.

Dacia is set to continue to be in the United kingdom, though, while the new, all-electrical Dacia Spring has not nonetheless been confirmed for the United kingdom. “Dacia is a brand that is truly undertaking properly, not only commercially but also in phrases of profitability, mentioned de Meo.

Even so, he also warned that Dacia costs would have to rise somewhat to address the prices of meeting the most recent emissions expectations. “In Dacia we will almost certainly need to have to set some euros to cope with these Euro 7 [emissions expectations] that are coming,” he mentioned.

Read about Renault’s potential options for the Alpine sub-brand below…