Renault and Volvo Cars have decided to renew their importation agreement in the Nordic markets of Sweden, Norway, Denmark and Finland for five years, effective June 1st, 2003, when a business unit named Renault Nordic will commence operations. It will be responsible for the coordination of Renault vehicle sales and after sales across all four markets.
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For Renault, this agreement confirms a successful partnership with Volvo Cars and ensures continued access to a strong and widespread dealer network in all four countries. By strengthening the existing ties with Volvo Cars, Renault will pursue growth in the Nordic markets.
The partnership between Renault and Volvo started in 1983 and has allowed Renault to hold a strong position in what is the sixth biggest car market in Europe with 670,000 units (passenger cars and light commercial vehicles) in 2002. Since 1995, Renault sales (PC and LCV) in the four countries have more than doubled, with market share rising from 3.3% to just under 6% in 2002 with more than 40,000 units sold, giving Renault an overall sixth place.
Renault achieved its highest market share in Sweden in 2002 with 7.9%, the Mégane range being the third best selling and top imported car in Sweden in 2002.
Renault Nordic will be based at the Volvo Cars headquarters in Göteborg. It will comprise front-office activities including vehicle marketing, and after sales, warranty and financial control, while back-office activities such as human resources, IS/IT and network development will be shared with Volvo.
For both partners, the economies of scale derive from the sharing of costs and resources, including logistics and back-office functions.
