After what clearly was not mutual agreement, Renault will axe a deal under which Swedish automaker Volvo distributes the French company’s cars and light commercial vehicles in four Nordic markets.
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From 1 January 2008, Renault will establish its own subsidiary for the distribution of its vehicles and spare parts and provision of after sales service in Sweden, Norway, Finland and Denmark.
This decision will not affect Renault customers, the French automaker said.
Marie-Christine Caubet, Renault senior vice president, market area Europe said: “The ambitions of Renault Commitment 2009 announced by our president, Carlos Ghosn, in February 2006 require that we review our distribution policy in a number of key markets. It is in this context, and after much reflection, that we have made the decision not to renew the agreement with Volvo Cars.”
“We wanted to continue our cooperation with Renault after 25 successful years together but we will now strive for a good transfer of business for our employees, dealers and customers,” said Thomas Andersson, president of Volvo Cars Nordic.
Volvo Cars, through a network of dual-branded, Volvo-Renault dealers has sold and serviced the French brand since 1 January, 1982.
Renault sales rose from 6,500 units in 1982 to more than 35,000 in 2005 and 500,000 new vehicles have been sold in the four markets during this time.
The importer agreement was last renewed in 2003 for five years.
