2:31 pm, July 13, 2023
Renault has taken the axe to its dealership network and slashed the number of sites it operates across the UK.
Termination notices have been handed out to nearly 30 dealerships across the country as the French firm looks to radically downsize its network.
Renault confirmed it was making the cuts to Car Dealer after the news was leaked by disgruntled partners across the UK.
A spokesperson for Renault said the manufacturer will be cutting its dealership sites from 144 to 115.
The figures reveal that the car maker has already lost nine dealerships this year. The last research by Car Dealer, published in April, showed Renault operated 153 dealerships at the start of 2023.
As part of the latest reductions Renault is reducing the number of dealer groups it works with from 54 to 46. Many of these groups operate multiple Renault dealerships.
Sources said the cuts have so far seriously affected Scotland, Northern Ireland and middle England territories.
Speaking anonymously to Car Dealer, an affected Renault partner said the car maker originally wanted to cut the number of dealers it operates in the UK to 50.
‘Renault has issued termination notices to a huge number of dealers as it looks to cut numbers down to closer to 100,’ said the Renault dealer.
‘Dealers have been given two years’ notice. Originally Paris wanted to cut numbers to less than 50 in the UK, but that’s madness.
‘With the Chinese brands coming here thick and fast that just leaves the door open for these challenger brands to get a foothold.
‘People want to go to a dealership that is close to them and for many people the brand doesn’t matter. Manufacturers would be well advised to remember that.’
Renault admitted the cuts had been announced to its network.
A spokesperson told Car Dealer: ‘In our first major change to Renault Group UK’s dealer network since 2012, we have adjusted our sales site coverage to ensure the best possible, consistent, experience for our customers, optimise our performance and provide a positive business relationship for our partners.
‘From 2025, our partners will reduce from 54 to 46, allowing us to ensure optimal coverage for our buyers – 96 per cent of whom will now be within 45 minutes of a sale site, and build a stronger and more sustainably profitable Renault Group UK for the future.’
Many car manufacturers are cutting the number of partners they work with as they move towards agency sales futures.
Mercedes took the number of partners they work with down to just 20 before they went to agency sales. Jaguar Land Rover has said it will also cut the number of dealers it has across the country as it switches to agency next year.
Paul Daly, partner at UHY Hacker Young, added: ‘It seems like all the mainstream established volume players are assessing their cost of distribution in response to present and future threats from new entrants particularly the Chinese.’
