A major row has broken out between Renault’s UK operation and a bank over used car depreciation.
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According to the Daily Telegraph, the French car company said a recent report by Alliance and Leicester into used car values is flawed and “should sit on the shelf in between Harry Potter and The Lord of the Rings”.
Renault also reportedly said it is planning to sue the report’s author, the Centre for Economic and Business Research, while the CEBR, in return, is looking at taking action against Renault for the comments.
The newspaper said the Alliance & Leicester 2004 Car Price Depreciation report, which tells used car purchasers how much value vehicles lose over time, compared the prices of new cars with three year old second hand models and said the Renault Laguna depreciated the most.
Some newspapers, especially Britain’s ‘red top’ tabloids, published details in their usual sensational style – with, for example, the Sun publishing a table of the ‘top 10 worst depreciators’ topped by the Laguna. A lengthy Renault press release sent to just-auto and other media on Tuesday, claimed that tables were sent only to selected publications, while the report itself was more widely circulated.
According to the Daily Telegraph, Renault said the Laguna on sale in 2003 was “a completely different one” to the one sold in 2000 because a new model was introduced in 2001.
Renault UK spokesman Graeme Holt reportedly said: “The Alliance & Leicester should be ashamed. Renault UK will be assessing the damage done to our name and taking appropriate legal action.”
According to the paper, CEBR chief executive Doug McWilliams said: “We think the claims are unwarranted and defamatory and have handed the matter to our lawyers who have written to Renault.” A&L reportedly said it had taken the “pragmatic step” of removing the report from its website until the row was resolved.
The Daily Telegraph said the Alliance & Leicester bank stood by the CEBR, stating: “The CEBR is a reputable organisation with considerable experience in this area. They believe that the methodology they use is robust and appropriate.”
The newspaper said the CEBR data came from information provided by What Car? Magazine whose editor, Rob Aherne, reportedly said that the report did not make a distinction between the new and old Laguna models.
