4:46 pm, November 25, 2013
RENAULT has exclusively revealed to Car Dealer Magazine its growth plans for the next five years.
Called Go 5+, the mid-term plan has been signed by the French firm’s UK dealer network and is designed to bring significant growth and enhanced profitability to the franchise. Renault agreed the plan earlier this year, but chose to reveal it exclusively to Car Dealer once it had passed a milestone.
‘That milestone occurred in October when total group sales for Renault were 59,058 units – surpassing the 2012 Renault full-year total registrations of 55,685,’ Renault UK managing director Ken Ramirez told us.
For the 10-month period of January to October, Renault and Dacia UK car sales increased to a record 46.1 per cent to 49,154 units – up from last year’s total of 33,640. Meanwhile, retail car sales for the Renault Group for the same period also jumped a record 75.7 per cent to a 3.4 per cent market share.
‘That October milestone demonstrates that we are growing. A lot of manufacturers say they will grow but it’s quite different when you have proof to show you actually are growing. We’ve waited until this milestone to be able to declare clearly that we are committed to our customers, our network partners and we are here to grow. This five-year plan is clearly being executed and we are delivering on it.’
The Go 5+ plan aims to deliver a Renault Group UK market share – which includes Dacia and Renault Vans – of five per cent-plus; top tier network profitability that is above the industry average; position Renault in top 10 of the J.D. Power Customer Satisfaction Survey, and see Renault break into the top 10 in the Global Opinion rank – all by 2017. Renault calls the plan ‘a win-win strategy with clear benefit to all parties.’
‘We’ve had ups and downs but this year we will be solidly profitable,’ Ramirez told us. ‘But we want to be top tier and above the average which is about 1.9 per cent.
‘We have identified we need to improve our consistency when it comes to the customer experience. We haven’t always been consistent so we are putting a lot of emphasis on this area.’
Ramirez added: ‘Next year we will be increasing the number of dealers in our network and to improve the dispersion that we have suffered from in recent years. We have a lot to do with the network – but there is a large amount of positivity in the network at the moment.’
