UK expansion ii
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no Renault dream
THE Berliet and Saviem merger took place at around the same time as IVECO, but the French consortium has not yet enjoyed the same success in rationalising its product range and selling vehicles. With a difficult home market, the new Renault Vehicules Industriels set-up has been fighting hard, and so too is the export side of the company.
The British market is now catered for by Renault Trucks and Buses UK Ltd based at Trafford Park, Manchester, and headed by Guy Caunegre.
Guy Caunegre joined Renault in 1970, initially on the car/light van side, after several years in West Africa with lorries. Following spells in Sweden and Switzerland, he moved over to RVI in 1977. "I started with trucks and now I'm back with trucks," he told me. _ As he sees it, Renault UK has two immediate targets — to improve sales and to expand the dealer network. On paper, Renault has 21 dealers but of these, seven are service points selling only a few units a year. Guy is not satisfied with this as it means only 14 real dealers. He hopes to have 16 strongly established "proper" dealers in 1979 selling a minimum of 40 chassis each year. This figure of 40 is the minimum required to be profitable, "and we want the network to make a profit," he said.
At the moment, Renault covers about 35 per cent of the market on a geographical basis. By the end of 1979 M. Caunegre is aiming for 50 per cent.
By the end of 1981, when RVI will offer a complete range of 2.8 to 40 tonnes gross, the market coverage is expected to be around 85 per cent.
Turning to the model range, Guy Caunegre intends to introduce several new models next year (see CM, November 24). Ignoring the TR 305 which has already been seen and will be readily available in January, the first of the new machines will be the Saviem JK75 which, as its type number suggests, is aimed at the 7.5-tonne non-hgv sector. This will be a "genuine" 7.5tonner when compared with the existing JN75 which is, ineffect, a down-rated JN90.
Guy Caunegre is extremely confident about the future of the J-Range in the UK. To date Saviem has been the only member of the Club of Four co-operative to market these vehicles in this country, but Guy feels that DAF and Volvo will be following suit in the not-too-distant future. The problem that the J-Series had when it was launched at Earls Court in 1976 was one of price — it was around 20 per cent more expensive than the competition.
Although M. Caunegre is pleased with the success of the J-Range, he admits that it has not been easy to sell at that price. "But the specification is such that people are realising that, although they are paying a higher price, it's worth it."
It is difficult to convince operators to pay a premium price for a premium chassis in the lower weight categories but Guy intends that the JK75 will be a volume unit seller which can be priced accordingly. "What is important when launching such a truck is that you keep the right price and the right specification for the right market." He is determined that the JK75 will not suffer the price handicap of its J-Series stablemates.
In September of next year (the most likely date at the moment) Renault UK will be launching two more new chassis — the HR16 and the HF32T. These are basically Saviem-type numbers as was the JK75, and I used them because Saviem is the marque name by which these vehicles are known at the moment. It is by no means certain, however, that the Berliet and Saviem names will continue in the UK.
A decision is expected early next year for future imports to come in under the Renault name — but this arrangement will apply for the UK only. As Guy Caunegre said, "Let's say we're treating the UK as a special case as the trucks come in through one importer anyway and not through a separate Berliet and Saviem network. We've asked dealers and customers about it and made our decision."
The HR16 will be a 16-ton rigid; the HF32T will be aimed at the light 32-ton market, in contrast to the 40-ton Berliet TR305. The new models will feature the wide version of the Club of Four cab.
The Birmingham Motor Show was a surprise for Renault. The Manchester stz had expected just to be pr sent and exhibiting tl vehicles. In Guy CaunegrE own words, "In fact somethir quite different happened. U expected. Not only did make a lot of sales during tl Show period but we received lot of inquiries from peop wishing to have ot franchise."
Renault Trucks and MASI have already at the time I writing announced tt appointment of four ne dealers and a Service agent I handle the company's con plete UK product range.
From January 1, 1979 th main dealer for South Londo (where Renault was pr( viously unrepresented), Su: rey and West Sussex will h Lester Truck Sales (Croydor Ltd.
Three other companie already associated wit Renault Trucks have no been accorded main deale status. They are: Mansfiel Commercial Vehicles Ltd c Mansfield, Notts; Stanle Road Garage Ltd of Bradforc West Yorks; and Anderso Commercials (Newhouse) Lt of Motherwell.
Renault is pleased with th NEC results but no one i being excessively optimistic The feeling is that the objec tives can reasonably be met As M. Caunegre out it: "Ther is no dream, no room for sen timent. It's all based on fig ures."
• by Graham Montgomeri