Wednesday, December 22, 2010
Renault cuts new car prices to reduce discounting
Renault is cutting its recommended retail prices in January at a time when most car prices will rise as a result of the new 20 per cent VAT rate.
The initiative is intended to close the gap between Renault’s list prices and discounted transaction prices and follows its recent move to simplify its model line up by deleting around 30 per cent of its model variants.
The new pricing, which starts on 4 January 2011, sees cuts ranging from £170 off the entry-level Scénic to £2,300 off the range-topping Laguna Coupe GT.
Thierry Sybord, Renault’s UK managing director (pictured) said the move will reduce the level of discounting in its dealer network.
“There’s been a big difference between catalogue prices and transaction prices and when you do that for a while it destroys the value of the brand. Over the next two years I want to work on the value of the brand and come back with the magic,” he said.
“It’s important to train our network and try and change the habit they have to sell the discount before they sell the product. It’s a big challenge and the network agrees with us. We’re in the same boat.”
DATED: 22.12.10
FEED: MT
