The new boss of Renault UK, Ken Ramirez, says the successful launch of the new Dacia budget brand can play a critical role in helping Renault end its policy of selling its products at significantly discounted prices.
Speaking on the eve of the Geneva motor show, Ramirez, who joined Renault UK in February, said: "We have some clear internal goals for Renault, which centre around making our new products striking, appealing, desirable and trustworthy.
"Those qualities apply to the new Renault Clio, and they will apply to all our new vehicles. The problem we have is that, today, we're assumed to be a brand that discounts. That can't continue. The transaction prices are too low, and while that may be possible with aged products, it certainly isn't possible with all-new products.
"But that's where the Dacia brand can help. The Dacia Sandero and Duster are great budget cars, we won't discount them at all, but they remain aspirational for used car buyers, or people who would traditionally buy a discounted Renault.
"Every new Renault should be a car that people aspire to buy new - and are willing to pay a non-discounted price for. If you want a quality, low price car, then buy a Dacia. If you want a mainstream quality offering, then buy a Renault."
Ramirez also said that Renault would push harder in future to get the message of its transformation from discount to quality brand heard by among consumers.
"We have strong messages on design, technology, reliability - all things that car buyers want but perhaps haven't heard from Renault in recent years," he said. "We've got great new product coming over the next 18 months, and this is our opportunity to change."
Join the debate
Add your comment
B-segment is the issue
In larger class of vehicles you can get away with discounting because profit margins are greater because they are bigger cars with more tech etc which makes higher prices justifiable, however B-segment cars do not have that luxury because they are around the £10,000 mark usually and the car will cost around that to develop and manufacture etc.
I wish Renault the best I was very impressed with the Clio when I had a look at one (if I was wanting that kind of car I would be tempted) but the main issue is build quality if you can justify paying high prices for it being well built etc then I would be tempted (thats why VW sells so well)
Dacia shows the way to all brands
Its a noble task that the new Renault boss has set himself. Now he should follow the words with action. Cut the list prices by up to 20 per cent and then offer discounts no more.
All the other brand could do the same as the way I see it most car brands demand up to 20 per cent too high asking prices. Hence we see this confusing system of discounts.
Just because you start
Just because you start selling a budget brand does not mean your main brand is any more premium than it used to be. Renaults RRP's are set to a higher than 'worth' level, of course people are going to expect discounts and rightly so. Of course if they don't want to be seen as a discounting brand then snip 10-15% off their over the top asking prices.
I can see Dacia being their only brand in the UK in a few years, no Mondeo/Insignia fleet model any more, the Megane sells next to nothing too. The only car they have that sells in any numbers is the Clio, oh and and Dacias of course........