The Renault Scenic is one vehicle facing the chop.
The Renault Scenic is one vehicle facing the chop.

These are the three model ranges that Renault plans to discontinue

By Gilles Guillaume Time of article published May 15, 2020

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Paris - Renault is preparing to substantially reduce its vehicle range, withdrawing well-known but ailing models like the Espace MPV, as part of looming cost cutting plans, four sources in the industry and close to the French carmaker said.

The company, shaken by the downfall of its once star CEO Carlos Ghosn and by setbacks in its main markets, is set to detail at the end of the month how it aims to cut costs by 2 billion euros (R40m) over the next three years.

That will coincide with Renault's embattled Japanese partner Nissan's own strategic update, set to be outlined on May 28 and which should encompass a pullback from Europe and elsewhere to focus on the United States, China and Japan.

“The project is not yet completely set in stone but the Espace, the Scenic and the large sedan Talisman should already be considered scrapped from the future product programme, it is practically a given that these models will stop,” one of the sources told Reuters.

"In short, fewer minivans and sedans and a focus on crossovers and SUVs", the source added.

The company had already embarked on an overhaul of its ranges in 2009 but it still has between 45 and 50 models in its catalogue, under its own brand as well as within Dacia, RSM, Lada and Alpine.

Renault Talisman set for discontinuation too.

Renault, which last year posted its first net loss in 10 years and has been hit hard like its peers by the coronavirus crisis, declined to comment.

French rival PSA, which owns Peugeot, trod a similar path six years ago, when it announced it would cut the number of its models from 45 to 26 over its three main brands.

"Renault is far more international than its compatriot, whose sales remain focused on Europe", another source said. "But even if Renault's geographical diversity is the factor behind its high number of models, that level is not sustainable anymore."

The Espace model, which has sold 1.3 million units since its launch in 1984, would be the most notable to go. The car became the standard bearer, in Europe at least, for the MPV segment.

The Renault Espace is set to bow out.

The fifth generation of the model, on the market since 2015, has however struggled against competition from SUVs and its sales plummeted 21% last year to a mere 10 000 units.

The Espace, as well as the Scenic compact MPV - another one of Renault's former bestsellers - would give way to a new Kadjar model with five-seat and seven-seat versions, two sources said.

To cut costs and boost its profitability, Renault also plans to extract more synergies from its alliance with Nissan and Mitsubishi, sell real estate assets and shut down operations in loss-making markets like China.

Acting CEO Clotilde Delbos has said there would be no taboo in cutting costs, raising fears of job cuts and plant closures. That is likely to be politically sensitive in France, however, especially when the group is in talks over state aid.

Reuters

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