Renault could cut UK models in no deal Brexit profit drive

New Groupe Renault CEO Luca de Meo has warned that some versions in the Renault array could disappear in the need to reach profitability for the British isles subsidiary.

With the opportunity for a no offer Brexit that would bring additional tariffs to the British isles automobile industry, moreover any forex swings that make it more highly-priced to do enterprise in the British isles, Renault, like several automobile makers, could be compelled to slender down its array to the versions that make the most income.

Speaking to Vehicle Express, de Meo said, “We are on the lookout at any marketplace and any products that’s not accomplishing enough income and we’re questioning that.

“I’m not heading to explain to you that we have to pull out of the British isles – it is this kind of an vital place – but we need to have to make hundreds of micro conclusions that will allow us to get again to a selected degree of profitability. Without the need of funds, we have no upcoming. We have 24 months to cross the desert economically, so I have to make some conclusions.

“In some situations for the British isles specially, I could possibly have to make some conclusions on some goods and some variations – it is normal.”

Whilst Renault versions this kind of as the Espace and the Talisman are not bought in the British isles, they could be joined by other versions, or certain trim amounts, that Renault British isles struggles to make income on.

On the other hand, that’s not probably to include the Clio and Captur, the brand’s two greatest sellers and recent Award winners in the Vehicle Express New Automobile Awards 2020. “In the circumstance of the Captur and the Clio – the cars the place we really do volume and are aggressive – you will be amazed by the margin we do on individuals cars,” said de Meo.

Dacia is established to continue to be in the British isles, even though, even though the new, all-electric Dacia Spring has not nevertheless been confirmed for the British isles. “Dacia is a model that is really accomplishing perfectly, not only commercially but also in terms of profitability, said de Meo.

On the other hand, he also warned that Dacia charges would have to rise a little bit to address the costs of meeting the most up-to-date emissions criteria. “In Dacia we will possibly need to have to set some euros to cope with these Euro Seven [emissions criteria] that are coming,” he said.

Study about Renault’s upcoming options for the Alpine sub-model here…