Fleet News

Dealer slimdown carries on apace

THE slimdown in the UK's dealerships is continuing as Renault and Seat rationalise their retail networks. Renault is cutting 33 territories to help overall profitability in the network, as other dealerships take on larger areas and greater sales and servicing volumes. Although the company is not revealing the number of terminated dealers, it said most would be changed to sales and service outlets. Most of the terminated dealers will continue trading for the next two years.

The move will give Renault an increase in control of its own network. The French manufacturer has its own dealer arm, called the Renault Retail Group, which will be responsible for around 25% of total sales. Predominantly located in urban areas, these huge sites account for a significant part of Renault's fleet sales.

Seat is understood to be disposing of 22 dealers as it continues to improve the standard of outlets in its network. The move comes on the back of sizeable retail and fleet growth in 1996.

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