French manufacturer Renault at the moment will seriously reduce the range of models offered on the market. This was announced by the CEO of the company Luca de Meo, clarifying that the main focus of the brand will now be focused on C-segment cars.
The former head of Seat explained that during the crisis, the priority direction of financial resources will be directed to the C segment (where Megane is located), although in recent years Renault has received significant revenues from the B segment (mainly from Clio sales). It might be risky to invest in small cars in order to achieve high sales, De Meo said.
He declined to say which models the brand will part with in the near future, but experts say three of them are definite - the Escape and Scenic minivans, as well as the Talisman sedan. They will be joined by the compact Twingo hatchback (segment A). The reason is that the profit from it is small, and the development of a new generation of the model costs a lot of money.
De Meo is due to reveal details of Renault's new strategic plan in early 2021. However, the financial results he released just a few days ago, which point to a $ 8 billion loss, suggest that the new CEO and his team have made more product decisions in the past 4 weeks than the previous leadership in 2 years. ...
According to the head of Renault, the big problem of the brand is the weaker range compared to the PSA rival (especially Peugeot). Therefore, it can be expected that models leaving the market will be replaced by others, which will bring the company more serious revenues.