PARIS — Renault plans to sell some of its company-owned dealerships in France, as the automaker embarks on a comprehensive cost-cutting program to reduce expenses by a total of 2 billion euros in the next three years.
The automaker said in a news release this week that as part of a restructuring of retail operations to be concluded by 2024, 10 dealerships would be sold in France to ensure “sustainable and profitable growth” and to prepare for a future in which the car buying process moves to online sales.
Renault Retail Group will also sell an operations building in the Paris area.
Renault said a buyer had been identified for the dealerships and that jobs would be protected.
The Renault Retail Group, a wholly owned subsidiary of Renault Group that has a total of 275 dealerships and 12,000 employees in 14 European countries, markets the Renault, Dacia and Nissan brands. It has 94 outlets in France.
Renault says it is the second-largest automotive distribution company in Europe, and is responsible for 35 percent of group sales in France and 20 percent throughout Europe.
Even as Renault cuts back its involvement in retailing, its French competitor PSA Group announced last week that it was recruiting 1,300 employees for its own retail subsidiary.
Kerrigan Advisors’ proprietary annual OEM Survey of over 100 executives reveals that the majority of respondents are worried about the financial impact of Chinese automakers’ growing global market share, and most expect that the EV transition to be slower than expected. The survey also queried executives on their outlooks for dealership valuations and profitability, as well as their expectations for the future of dealer networks and facility requirements.
PSA Retail operates more than 270 sides in 10 European countries, and has more than 10,000 employees.
