Renault cuts back Aussie operation
June 26, 2009 by David Twomey
The current tough sales climate in the Australian car market has led market minnow Renault Australia to cut back its local staff and re-evaluate its sales expectations, but there’s no suggestion it’s closing its local operations.
Managing Director of Renault Australia, Rudy Koenig, told CarAdvice that the staff cutbacks had included the company’s public relations manager, Craig Smith, and left the French-based, majority owner of the Renault-Nissan Alliance, with about 20 staff in Australia.
He denied reports that the company, which has sold just 944 vehicles in Australia this year, was closing its Australian operations, adding that it had to be remembered that Renault in Australia was able to use the support operations of Nissan in Australia.
Mr Koenig said Renault was looking forward to a much better second half of the year from a sales standpoint, having just released the Laguna Estate.The Laguna has so far failed to excite the local car market with sales dropping from 196 last year to just 26 vehicles this year.
The only real stand out in the Renault sales figures this year has been the Korean-built Koleos SUV, which has accounted for 366 sales.
He said sales so far this year had not been up to expectations and said Renault was currently down about 18-20 per cent on last year’s figures.
“Our situation is pretty consistent with the overall industry decline, I think, and like the rest of the industry we are expecting things to pick up later in the year,” Mr Koenig said.
He added that the Federal Government investment allowance had helped business sales in the past two months and, like most of the industry, May had been a good month.
He said that there had been a reappraisal of priorities and the international division of Renault would be playing a bigger support role in the Australian operation.
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Well that looks like one strong business.
I like Renaults but is there really a market for them in Australia? I feel the same about Fiat. It just seems here that if people want a European hatch, they buy a Golf or a 308. The previous Megane obviously didn’t sell in too higher numbers because you don’t see them around that much. I think the pricing is definitely off in Australia as well. A Laguna on the road would be about $50,000 and thats too much. You can get a Golf GTI for the price of a RenaultSport Clio despite the size class difference. The Koleos is a good deal but it’s the first as far as I can see.
I think that Australians just find Peugeots and Volkswagens to be more agreeable and more interesting. I know I do.
Good luck to them, but I think even Skoda must be currently selling more cars in Australia so I wouldn’t be surprised if they were gone in five years.
Just to add, I do see a lot of the previous Clio around the place and I think that Renault really needs the standard Clio at a good price to survive in Australia.
If people aren’t buy Renaults and Nissan cars are built on Renault’s platforms… I can only see Nissan going downhill~
I have always been a volkswagen fan. I think it’s just the style, plus I’ve known family that’s owned theres for 20 plus years.
Although I agree with you Alex, I think Renault make far more sense in Australia then Fiat. Fiat are considered to be cheap in Europe and here are more expensive then Volkswagens and Peugeots. Also the lack of a proper autobox doesn’t help them either.
Renault need a stronger product lineup in Oz, introduce the new Megane and add a small car, they have enough to choose from: the Clio, Modus, Twingo, Sandero.
Wow, 944 Reno’s so far this year in Australia. That makes us a bigger market than China!
http://www.caradvice.com.au/32.....ty-issues/
Myke, I agree that Renault makes more sense here than Fiat but Renaults are considered cheap in Europe as well. They’re no luxury badge, they’re rep cars and family hatches.
I’m all for Renault, and would consider buying one myself. I think the biggest problem they face in Australia is the difference in release dates of new cars in to the local market. Why would I go out and buy a new Meganne, when I have spent the last 6 months reading about the new new Meganne that has been released in Europe but still won’t be released here for another 6 months.
Nothing surprising about this. The Koleos is the only car in the range that’s remotely price-competitive, and when you introduce a new car (Laguna) that’s uglier than its predecessor by a factor of 10, sales are bound to spiral downhill.
ALEX^^^^^
Fiat are strong in AUS, they also have Alfa and now BigC.
I dont see a issue for them in any way, shape or form.
The BIGGEST problem R have is the fantasy prices, they need to be LESS than the others, not the same or more.
THE only solution i see for them is Dacia, Chinese prices Euro quality, can turn the whole company around, forget about trying to turn R into a premium brand its failed totally.
Do they want to help themselves or not, Dacia is the anwser.
Cheers
F-0
Hmmm can’t help but get the De-Ja-Vu feeling about this….. Anyone remember the early 80’s when all the Euro’s fled because of the exchange rate??????
Its so pathetic that the brand that powered Mansell, Schumacher, Hill, Villenauve and Alonso to F1 world championships can’t capitalise on the reputation. Absolutely pathetic. Marketing execs at rival car companies would kill for the opportunity to work with such an illustrious history.
A problem I see is that there is a lot of emphasis on the RS range of cars.Renault needs to concentrate on more vanilla type cars….they sell.
Later Renault will introduce the RS Megane.I’m sure it will be inpressive but the base cars need to be impressive and lure people into the showrooms.
Alex, unfortunately that is the case with most European car companies, overseas their vehicles are affordable and when they arrive here they become near luxury. It seems that only Ford and Volkswagen can price their European examples competitively. Interesting considering most of Volkswagen’s range comes from Germany, I wonder how they are able to do that, when others struggle?
MYKE^^^^
No idea why Renault are so expensive, VW and Ford have factory owned opererations here in Oz, as is Renault.
Fiat, Alfa, Peugeot, Citroen are NOT fair-dinkum, if they where they would set up shop here directly and have a price advantage.
Cheers
F-0
If Mr Koenig would like to know why his brand is doing so piss poorly, he should walk into one of his dealers. I recently had the displeasure of one of the most disinterested sales people I have ever dealt with.
not to mention in some areas there’s not even a dealer.
Cuts back? What do they mean? The only dealer I have seen, is one in Brisbane. Of coursce there would be one in Sydney and that. The Renault dealer is usaually right next to Nissan’s.
Like Skoda I guess. But I have not seen one bloody Skoda dealer yet! Lol.
What’s new? Since the mid 1970’s Renault can hardly sell any cars in Aust or the US where there aren’t any protection laws like there are in France and the E.U. In the next 1, 5, 10, 20, 30 years, it will still be the same old story.
Renault Australia’s marketing is flawed, the sales reps are rude, over prices cars, no brand recognition in Australia. What did Renault Oz expect?
They need to appeal more to the general and start selling base model cars at a greater volumn such as Clio’s, meganes with competitive price. Not bring the models out 2 years late….
As a previous Clio sport owner, I wouldn’t be going back to Renault! It’s clear the company is not ‘connected’ with the consumers.
What’s so exciting about Renault in Australia? High prices, quirky design, poor reliability. The only upside is that it is well made. No surprises about their cutback.
Pirakavezok
So they are well-made but unreliable?
Confused
A car can be well made, yet at the same time unreliable. Take for example a Renault that I bought new. The interior and exterior are made of good quality material. The body is solid (amply proven in one accident) and the door closes with a thud (albeit light one). The steering wheel and dashboard are made of good quality plastics. Even the seats are comfy-made with hard wearing fabric and with tasteful motif. Use the car for a couple of years, the steering pump starts to leak, the engine management unit starts being eratic etc. When you go to the work shop to replace the pump, they tell you need to replace the entire power steering assembly cos they don’t sell no pumps. You ask them to reprogram the engine management unit they say you need to replace entire CPU. After replacing the engine management unit, the problem reappears several months later. Then the radiator starts to leak and the driver’s power window drops down permanently. Eventually I gave up.
I mean-it looks and feels good and even handles well. Can I rely on it for fuss free motoring- NOPE.
What was the result of your Laguna. Did you dispose of it. Mine has just died . They say $10K to fix and its only worth $5K but I still owe $12K. What can I do???????
Recently, I was in the market for an SUV and I was keen on the Koleos when I saw it in a dealer’s showroom. It seems like a fantastic SUV, simply put – very well made. No matter how persuaded I was, I turned away fearing a repeat of my previous Renault ownership experience.
just can’t understand why they’re so expensive here in oz, just because they’re euro?
Renault in Oz needs to cut itself loose from the Nissan dealership. I have been to the local Renault dealership twice in the last 12 months and the salesmen couldn’t give a hoot. They are quite happy to steer you in the direction of a Nissan if it is going to benefit them. I recall Renault’s last marriage in Oz with Volvo – same thing. Renaults were always the second cousins in the Volvo showroom. This approach suggests a very tentative Renault presence in Oz and I feel that the punters must be reacting accordingly. Just recently, I rang the local Renault/Nissan dealer to find out whether the latest Laguna was in town for a viewing and test drive – “not available”, “will ring me”. They couldn’t even tell me whether the Laguna was even in town. RIP Renault in Australia (yet again).
PS – I’ve owned several Renaults, Peugeots and Citroens. The offerings by the PSA groups are much better than the Renault mob
The market is not large enough, particularly post late October 2008 and as the exchange rate changes, for more than two French car brands in Australia.
I’m a Renaultsport Clio owner (2002 model).
My car is now looking a bit sad and has done 115,000kms but GOD I LOVE IT. Driving it hard on a country road is mindblowing, even after 6.5 years of ownership. The engine and gearbox have been flawless. Minor electrical probs fixed under warranty. Otherwise NO issues with my car.
Supply & Demand’s post above hits the nail on the head! Need to leverage the motorsport links.
My two cents…
Renault works brilliantly in the UK. Why?
Because THEY USE THEIR RENAULTSPORT CARS AS IMAGE BUILDERS AND PROMOTE THE HELL OUT OF THEM. THEY ARE ALSO COMPETITIVELY PRICED. Not cheap, but not over the top.
I’ll be an old man before they release the Megane RS250 here. What a joke.
Dont get me started on the pricing of the Clio at the moment.
IMHO the plan to revive Renault in Australia should be:
1. draw on the heritage of the brand.
2. draw on the motorsport success and use Alonso videos/press ads wherever possible. The recent videos of him in the RS250 are good.
3. offer the full range of Renaultsport cars in Oz ASAP and price them fairly at DRIVEAWAY pricing – this means the RS Twingo ($23,990) RS200 Clio ($34,990 to 36,990) and the RS250 Megane ($39990 to $43,990). These will be your image leaders.
ENSURE TWO OF EACH RS MODEL ARE ON DISPLAY AT ALL DEALERS -ONE SET TAKING PRIDE OF PLACE IN THE SHOWROOM WINDOW and THE OTHER OUTSIDE THE DEALERSHIP ON STANDS. NO EXCEPTIONS! OH, and mix the colours up a bit..not all YELLOW!!!!
PROVIDE LONG TERM TEST VEHICLES TO ALL KEY OZ MOTORING MEDIA – KEY MAGS (AND CARADVICE OF COURSE)!!!!
OH, AND GIVE ONE TO THE TOP GEAR OZ CREW FOR CELEBRITY LAPS, OR SOME OTHER REGULAR FEATURE. (ASSUMING THAT SHOW SURVIVES!!!!)
4. secondary focus on unique, compact and efficient cars – basic clio 5 door in one spec with decent engine and equipment priced against VW Polo (low 20k), and one new megane in 5 door priced against Mazda 3 (sub 30k). DRIVEAWAY PRICING ON BOTH CARS.
5. eliminate mid-size car (laguna) – uncompetitive on all fronts so ditch it.
6. keep the Koleos as a key ‘family’ option in the range.
7. Send all dealers and sales staff to boot camp! Ensure they all live and breathe Renault and Renaultsport. They should be forced to read RS owner forums every night as homework.
Renault need to become VISIBLE in the market. Now!
JJ
I like your idea JJ. I don’t think the Laguna is wrongly priced ever since the reduction. Top-spec petrol Renault Laguna is $46,490 which is just above the top-spec petrol Mazd6 at $45,440. They have similar specs too. Top-spec Honda Accord Euro is also $45,990. I would like to see how the Frenchie compares to the two Japs. I love Renault,but without the intoduction of the new Mégane happening soon, I fear they may wilt and die in Australia. They need new salespeople too…
They make good cars (read the comments from owners in the Laguna Privilege review), just that nobody trusts the brand and their new found quality products.
Although I agree with you Alex, I think Renault make far more sense in Australia then Fiat. Fiat are considered to be cheap in Europe and here are more expensive then Volkswagens and Peugeots. Also the lack of a proper autobox doesn’t help them either.
?????????????
what drugs are you guys on???
spec out a golf and see what it costs you?
fiat and alfa are beautifuly styled, and have heart and soul.
vw? boring. renault? laughable.
majority of australians buy toyotas. why? because they are as boring as watching ducks cross the road.
Alfa Romeo. Looking gorgeous, unashamedly Italian, off-skewered off-set number plate, brazen looks and couldn’t give two hoots for Nuremburg lap time conquests. While car journalists are out there measuring which car’s got the biggest willy, Alfa’s around the back, dragging on a ciggie and enticing everyone with its charm, looks and good manners.
follow the crowd consumers = showing everyone you have the right school uniform
Alfa = not giving a shi5 about the ‘right’ uniform; but having the right heart.
Renaults in Australia are way over-priced full-stop. The result is that no-one wants to buy them and no-one wants to sell them (where’s your nearest Renault dealership?).
Renault Australia should stop kidding themselves…your cars are better than locally built cars but not better than VWs…price your cars accordingly.
Renault make great cars, have had a history of making fast rally cars and fast four cylinder cars way before they became popular here, have been successful in formula one and are the Pioneers of the turbo and remote central looking. I have had renos and currently own a megane rs225, which is such a fast fun car to drive, will be looking to purchase the megane rs250 if it comes out to Australia. The frustrating thing with Reno is their lack of advertising here in Australia.
When Reno were winning formula one in recent years did you see them advertising? No, they just don’t seem to get it, that you need to advertise your product a lot more in a country that doesn’t look out side Fords or Holden’s.
The positives are that you won’t find every second car on the road to be the same as yours.
Jimmy James has nit the nail square on the head! I’m a Brit now living in Sydney and have been gobsmacked at the prices of all Euro’s in Oz! Renaultsport Clio’s are very well priced in the UK and sell like hot cakes but, UK has a far more motorsport orientated market and will buy more sporty models of all cars than any other country in Europe. You only have to look at how many of a limited motorsport edition are allocated to UK.
Comments are also correct with refence to dealership hospitality. You are instantly looked down at if you walk in wearing a pair of jeans!
I will say that Renault Australia have always been fantastic in helping me with sourcing parts for my imported Renault.
Woz, I was wondering what imported Renault you might own? I would love a Laguna Coupe. Are you listening Renault Australia?
Hi Glenn,
Good to see your rs225 is going well. I am seriously considering this. When and how mch was your drive away?
I was considering the new golf VI tsi 118kw but looked at some bad reviews of dsg gear box really put me off. Also considered the GTI mark V but its south african reliability questionable. Any major problems with the french renault so far? Have you owned renault previously? mch appreciated, await your reply JJ7
Hi JJ7 Renault 225 are great cars, this car handles like a go kart around corners and is quik off the mark.I only take it out when I go to the great ocean road, which is a bit busy, the best drives are on the alpine hwy in spring, you have a good chance of having very little traffic, so you can open her up and drive it how its meant tgo be driven, quick around corners, while in most cases staying within the speed limit.I have always loved renos, they made the best rally cars, long before they became popular here.I used to have a fuego for years,was a fun car to drive to.I personally haven’t had any problems with my renault, always been reliable.
Just took a Clio for a test drive. wow. Magic machine. And, they’re takin’ $5000 off the price. Sounds great. But why? Can’t they sell them? Were they too expensive anyway? So what’s the risk of grabbing this beast? Will Renault really pull out of Aussie?… which would screw up the values, and the servicing. Would love the car, Just wanna know that they’ll look after it after I buy. Any ideas??!!!!
Hmm..Renault owns 44.5% of Nissan. They dont just share the showroom. They share a CEO. Never the less, renault in Australia does have branding issues, they do have a very slow delivery rate for new models, and they will continue to do poorly unless they fix these.
Regards to VW, they are not cheaper, nor superior in my opinion. They do have a brand and hence the fan boy club that follows such. The GTI was a very good car (the new model isnt as good – too many compromises), but its certainly not the only good car in the segment.
Unless you have owned and peddled Renault Sport, I dont think you really can be in a good place to judge their cars, and as for reliability, every car I have ever owned has had problems – and that covers over 10 cars of various makes and brands. Some are worse than others sure, yet I do get sick of people using this as some sort of yard stick. If that was the only measure, Mercedes would be selling not one car since their reliability is woeful, yet their brand (and loyalty) is strong.
Id say it will be a damn shame if Renault no longer sells cars in Aus. They
make some very good cars in the RS range and Id hate to see them no longer available here.