Renault is to restructure its business in the UK, dropping a number of models and reducing its dealer network by around one third over the next 12 months.

It also aims to reduce its reliance on less profitable elements of the fleet market such as daily rental and Motability.

The move is aimed at returning the French carmaker's UK operations to profitability without the need to be propped up by headquarters, and strengthening the brand in the country.

From the beginning of February next year Renault will discontinue the Kangoo car, Modus, Wind Roadster, Laguna and Espace while the network will be reduced by the end of 2012 from 190 to around 135.

Managing director Thierry Sybord said that dealers were given the news at the end of last week and while reaction has been mixed, it is mostly positive.

"There is a general feeling that something needed to be done," he said.

Renault UK is also taking a number of measures to improve brand perception and residual values. Central to this will be the introduction of a 4+ incentive for cars and vans, consisting of a four-year/100,000-mile warranty, four years' free servicing, four years' roadside assistance and a four-year finance package.

Sybord revealed 2012 will be a "transition" year with the gradual introduction of its zero emissions models, culminating in the Zoe at the end of the year. Also arriving at around the same time will be the fourth generation Clio, historically a successful car for Renault in the UK, and the launch of the Dacia brand.

All dealers will sell the Dacia Duster and new generation Sandero models when they arrive around November.

Sybord said: "During 2012 we plan to move the Renault brand up in terms of customer perception and bring in Dacia below it. Our electric vehicles, or Z.E. brand, will form a halo above."

Z.E. models will be the Kangoo Van, Twizy, Fluence and Zoe. Asked if the large models, Laguna and Espace, will eventually be reintroduced, Sybord said: "We will have to wait and see.

"It is difficult to compete in the D-segment against Ford and Vauxhall so a Laguna in the future will have to offer something very different. I think that we can expect something very different with the next generation Espace and that will be worth looking at."

Full story in Fleet Digest on December 22.

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Author: Simon Harris