Skip advert
Advertisement

Renault could cut UK models in no deal Brexit profit drive

Renault’s new CEO says the firm is examining the possibility of reducing the range of models it offers to UK buyers as it aims to boost profitability

New Groupe Renault CEO Luca de Meo has warned that some models in the Renault range could disappear in the desire to achieve profitability for the UK subsidiary.

With the potential for a no deal Brexit that would bring extra tariffs to the UK car industry, plus any currency swings that make it more expensive to do business in the UK, Renault, like many car makers, could be forced to slim down its range to the models that make the most money.

Speaking to Auto Express, de Meo said, “We are looking at any market and any product that’s not doing enough money and we’re questioning that.

Advertisement - Article continues below

“I’m not going to tell you that we have to pull out of the UK – it’s such an important country – but we need to make hundreds of micro decisions that will allow us to get back to a certain level of profitability. Without cash, we have no future. We have 24 months to cross the desert economically, so I have to make some decisions.

“In some cases for the UK specifically, I might have to make some decisions on some products and some versions – it’s normal.”

While Renault models such as the Espace and the Talisman are not sold in the UK, they could be joined by other models, or specific trim levels, that Renault UK struggles to make money on.

However, that’s not likely to include the Clio and Captur, the brand’s two biggest sellers and recent Award winners in the Auto Express New Car Awards 2020. “In the case of the Captur and the Clio – the cars where we really do volume and are competitive – you will be surprised by the margin we do on those cars,” said de Meo.

Dacia is set to stay in the UK, though, although the new, all-electric Dacia Spring has not yet been confirmed for the UK. “Dacia is a brand that is really doing well, not only commercially but also in terms of profitability, said de Meo.

However, he also warned that Dacia prices would have to rise slightly to cover the costs of meeting the latest emissions standards. “In Dacia we will probably need to put some euros to cope with these Euro Seven [emissions standards] that are coming,” he said.

Read about Renault's future plans for the Alpine sub-brand here...

Skip advert
Advertisement
Editor-in-chief

Steve Fowler has been editor-in-chief of Auto Express since 2011 and is responsible for all editorial content across the website and magazine. He has previously edited What Car?, Autocar and What Hi-Fi? and has been writing about cars for the best part of 30 years. 

Skip advert
Advertisement

Recommended

Best speedsters: the top 9 roofless wonders for intensity and style
Best Speedsters - header image
Best cars & vans

Best speedsters: the top 9 roofless wonders for intensity and style

For some, these cars are the ultimate in no-compromise motoring, but would you splash out a fortune on one?
14 Apr 2024
Dacia Sandrider: Sebastien Loeb's Dakar rally challenger in detail
Dacia Sandrider - front
News

Dacia Sandrider: Sebastien Loeb's Dakar rally challenger in detail

The V6-powered Dacia Sandrider has been developed with Prodrive and features concept-car styling and huge off-road ability
13 Apr 2024
Renault and Volvo to create ‘revolutionary’ next-generation Flexis electric vans
Volvo and Renault Flexis van range
News

Renault and Volvo to create ‘revolutionary’ next-generation Flexis electric vans

The companies will work together to create a family of electric vans based on an EV-dedicated skateboard platform
4 Apr 2024
Dacia Jogger, Sandero and Sandero Stepway all get more safety kit for free
Dacia Sandero 1.0 TCe Expression front corner
News

Dacia Jogger, Sandero and Sandero Stepway all get more safety kit for free

Dacia has piled on the safety kit for all three cars to ensure they comply with the new GSR2 safety regulations
3 Apr 2024

Most Popular

Car Deal of the Day: stylish Peugeot 2008 is a steal at an incredible £142 a month
Peugeot 2008 facelift - full front
News

Car Deal of the Day: stylish Peugeot 2008 is a steal at an incredible £142 a month

Buyers can snap up the Peugeot 2008 small SUV at a bargain price; it’s our Car Deal of the Day for 10 April at just £142 a month
10 Apr 2024
New Ford Focus ST Edition is Ford’s “most complete” hot hatch ever
2024 Ford Focus ST Edition - front tracking
News

New Ford Focus ST Edition is Ford’s “most complete” hot hatch ever

Ford is making big claims about its latest fast family car, which adds exclusive equipment but no more power
10 Apr 2024
Alfa Romeo Milano 2024 preview: walkaround, specs and full details
Alfa Romeo Milano - front 3/4 static
News

Alfa Romeo Milano 2024 preview: walkaround, specs and full details

Alfa Romeo re-entered the small SUV sector with the new Milano offered in pure electric and petrol forms
13 Apr 2024