The minivan Espace and Scenic, as well as the sedan Talisman will not be part of the future production program of the automaker as Renault wants to reduce costs. While no final decision had been taken, but, according to the source, the abolition of these models can be considered almost certain.
The last time Renault has updated its model range in 2009. Now for buyers is available from 45 to 50 models under its own brand, as well as in the lines of Dacia, Renault Samsung, Alpine and LADA.
PSA’s French competitor Renault, six years ago went down the same path, announcing that it would cut the number of its models c 45 to 26 (in the lines of its three main brands). The goal is to save 300 million euros a year.
“Renault is much more international than his compatriot PSA, whose sales are still concentrated in Europe,” – commented one of the sources. “But even if geographical diversity Renault is the factor behind a large number of models supported, this level will be no more”.
Espace, sold 1.3 million copies since launch in 1984, will be the most noticeable loss. This model has set the standards (at least in Europe) in the class of minivans. However, the fifth generation of the model appeared on the market in 2015, has struggled with competition from the SUVs.
Espace and Scenic, one of the former best-selling Renault, will give way to crossover Kadjar (built in Spain), which will have a five-seater and seven-seater execution. This was reported by two sources.
These two models, as well as the Talisman built at the Renault plant in Douai (North of France). But manufacturing will remain active: it is planned to build two new models on the new platform of the Alliance Renault-Nissan for electric vehicles.
According to market researchers JATO Dynamics, last year Renault sold 77 507 vans Scenic in Europe, which is 16% less in comparison with the previous year. Sale Talisman fell by 20 % (up to 15 826 auto). Sales of the Espace fell by 20 % (only 9561 units).
The automaker has been shaken because of the trial of the former CEO Carlos Ghosn and failures in key markets. Last year the company published a report on ground over the last 10 years the loss. Like other automakers, Renault has suffered greatly because of the crisis caused by a coronavirus.
The main company “Groupe Renault” 15 % owned by the French state. The automaker is in talks with the government on the provision of assistance in the amount of from 4 to 5 billion euros to withstand the impact of falling sales and production because of the pandemic.
On this subject, the representatives of Renault have refused to comment.
In order to reduce costs and increase profitability, the automaker also plans to extract more cooperation from the Alliance with Nissan and Mitsubishi, to sell assets in the real estate market and close operations in unprofitable markets (such as China, for example).
The acting Director General of the Clotilde Delbos said that spending cuts will have no restrictions. This resulted in concerns about job cuts and plant closures. However, it is likely that this subject in France will be sensitive from a political point of view, especially given the automaker talks on state aid.
It is expected that at the end of the month, the company will tell you how it intends to cut costs by two billion euros over the next three years. The report will coincide with the updating of the strategy prepared to take decisive action partner Nissan Alliance, is scheduled for may 28. Probably part of the strategy may be a departure from Nissan Europe market and other countries to focus on the US, China and Japan.