Renault will establish its own subsidiary to distribute and support its vehicles in the Nordic markets (Sweden, Norway, Finland and Denmark) from 1 January.
The automaker will spend EUR10m setting up Renault Nordic to launch what it bills as “an historical product offensive on these markets”. It will employ 165 workers, with 100 at the head office in Stockholm.
As part of its Renault Commitment 2009 plans, the automaker will launch 25 new Renault and Dacia brand models in these markets – 13 for introduction during 2008.
The product line, adapted specially for the region’s extremely cold climates, will be topped by a new environment-friendly Megane E85 able to run on 85% ethanol fuel.
Renault Nordic will also have branches in Helsinki, Oslo and Copenhagen. The dealer network will continue as at present.
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By GlobalDataAlain Margaritopol, managing director, Renault Nordic, said: “The ambitions of Renault Commitment 2009 announced in February 2006 require that we review our distribution policy in a number of key markets, for greater service quality for our customers and greater growth for our brands. We count on being able to give stronger support to the network, allowing dealers to be more aggressive in their marketing. In addition to an expanded and renewed product line, Renault dealers will see the introduction of the new Logan model.”
Renault’s three key commitments in the areas of quality, profitability and growth to be met by 2009 require an increase in annual sales volumes worldwide by 800,000 vehicles compared to 2005 levels. The Europe region is important to this target and a number of markets have been identified where the Renault brand’s potential is under-exploited.
“The Nordic zone is one of these key markets,” added Margaritopol. ” Renault’s goal is to increase our combined car and LCV market share in the Nordic markets from 4.0% in 2006 to 7% by 2013. This region is clearly one which we are targeting for growth in the coming years.”