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Renault makes big cuts to boost profits

  • Company will be cutting five models from its UK range
  • Firm also announces plans to axe 55 dealerships
  • Paves way for electric cars and budget Dacia brand

It’s all change for Renault as the French firm is due to cut five of its models, including the Laguna, to make way for new products.

Essentially, it's out with the old and in with the new. In the UK the whole Laguna range (Coupe, Sports Tourer and hatchback) will be canned, along with Wind Roadster, the Kangoo and Kangoo Compact vans, the Espace, Grand Espace, Modus and Grand Modus.

In February 2012 the above models will cease to be a part of the Renault line-up, paving the way for the Dacia brand to arrive in December next year. The first model will be a 4x4 called the Duster, while a hatchback called the Sandero will follow shortly afterwards.

As well as the new brand, January 2012 marks the release of a revised Twingo, while the quirky electric Twizy arrives in March. Next is the Fluence Z.E. electric car, which arrives in May. A plug-in model called ‘Zoe’ follows in October with an all-new Clio coming in November.

As part of the shake-up Renault is also closing 55 dealerships nationwide, to bring the total down to 135.

In a drive to improve profits the company will also reduce rental and mobility sales across the board since these are the less profitable aspects of the firm’s fleet strategy. Renault expects yearly sales to drop to around 51,000 units – a reduction of 24,000 compared to the amount the firm expects to round off 2011 with.