Renault boosts dealer network

Renault set to plug holes in national dealer network including a new flagship facility in Sydney’s CBD
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Globally, the Renault Group is kicking goals, with significant increases in revenue and sales for the third quarter of 2011. During the three-month period, Renault sold more than 630,000 vehicles and generated revenue of nine billion Euro.

The fierce demand for Renault vehicles abroad is yet to extend Down Under, though. Although Renault sales in Australia are up 90 per cent year to date, the 2823 vehicles sold to the end of October still lag behind other major European brands. French rival Peugeot, for example, recorded 4515 sales during the same period.

While new initiatives including a five-year warranty and sharp financing deals have helped Renault Australia’s cause in 2011, significant gaps in its dealer network particularly in Sydney and south-east Queensland remain major roadblocks to further success.

Renault currently operates just 20 retail outlets nationally; whereas Peugeot has 40 dealerships.

"We’re aware that we need to improve our dealership coverage, especially in Sydney and NSW," admitted Renault Australia managing director Justin Hocevar, at last week’s launch of the refreshed Renault Koleos.

"For a city with approximately five million people, three dealer points is desperately inadequate… More than two thirds of Sydney’s population does not have an authorized Renault dealership within reasonable proximity to where they live."

By "reasonable proximity", he was referring to a distance of around 15km.

In what will result in "a level of presence that is unprecedented in all of (Renault’s) 30 year history in Australia", Hocevar announced three new dealerships will be opened shortly in key regions of NSW, including a new flagship facility in Sydney’s CBD called Sydney City Renault.

Offering 2500 square metres of retail space, the new CBD dealership "will be located less than 3km from the Sydney Airport in a prime auto precinct".

Renault will also partner with a new retailer in Sydney’s fast-growing inner west, which Hocevar describes as a "strategically critical market… disproportionately high in European vehicle sales."

"We will also commence operations shortly in Wollongong, on the south coast of NSW, in a dedicated showroom facility; for the first time in many years, in this geographically vast area," he said.

New Renault dealerships will also be established in the Sydney metropolitan areas of Gosford, Parramatta and Sutherland in 2012.

Also on the drawing board are new Queensland showrooms in the areas north of Brisbane and west of Toowoomba, and a Renault dealership in Tasmania, in order to "reignite the brand in this part of the world".

Renault is also considering extending its network to rural regions including inland and northern coastal areas of NSW, and far north Queensland.

While admitting Renault is well represented in Melbourne, Hocevar said, "Victoria is a blank canvas and there are at least three major towns that are likely targets for representation".

"Renault really is serious about its long term future in Australia and backing it up with an extensive network," he concluded.

"The brand deserves it, our customers deserve it, and the management team here is absolutely committed to delivering these promises to take Renault to a new level of presence in the Australian marketplace."

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