■ Renault wants to return to volume!

■ Association and importer are moving closer together again: (from left) VDRP lawyer Andrea Wei?, Karsten Borkowsky, General Director of Mobilize Financial Services Germany, Renault Germany boss Florian Kraft, VDRP President Hans-Werner Hauth and Thilo Schmidt, Managing Director at Dacia in Germany

By Yvonne Simon, ?kfz-betrieb? , translated by AutoNews24

■ Under new management, Renault appears to be reversing its strategy and focusing more on sales volume. Meanwhile, some former partners who were left have since received new contract offers, though these require investment.

■ Renault has appointed a new head for its German operations, Florian Kraft, who has been in the role for about three months. Reports from dealerships indicate that he aims to repair the damaged relationship with car dealerships and to halt the decline in the German market. "The mood is excellent," stated Hans-Werner Hauth, President of the Association of German Dacia and Renault Partners (VDRP), in an interview with kfz-betrieb. The association held its annual congress in Dresden last weekend.

■ Since the network termination announced in 2022 by the then-importer managing director, Markus Siebrecht, the relationship between retailers and the manufacturer has been far from positive. Simultaneously, sales have significantly declined over the past few years. Siebrecht's strategy of prioritising "cash instead of quantity" did not resonate with retailers, leading many to incur substantial losses with the brand.

■ There is currently a sense of optimism, according to Hauth. The VDRP event attracted 270 participants, making it the best-attended dealer congress in recent years. The manufacturer is now committed to collaborating with retailers and the association on an equal footing, as stated by Hauth. Kraft's presentation at the conference was very motivating and indicated a potential return to increased volume and market share, which Hauth describes as "a complete departure" from previous practices.

However, retailers are disappointed that Kraft has not yet provided specific market share and sales targets, only mentioning that these targets should be "realistic." Despite this, Hauth believes that the promises made are genuine. He notes that communication between the association and the importer has resumed, and initial changes are already being implemented.

■ Back to registration targets

For example, the bonus and margin system has recently been based on purchase applications at Renault. However, registrations have become the decisive factor again, similar to the situation before Siebrecht changed strategy. "That's what the network can do," says Hauth. For the first time, a registration target was set in October, and sales promotions were also increased. As a result, Renault achieved an increase in registrations compared to the same month last year, showing an 8.8% growth and securing a 2.3% market share. However, for the year overall, Renault remains 20.2% below the already weak performance of the previous year, with only a 1.8% market share.

Looking ahead to the coming year, there will be volume and quality bonuses. Additionally, an extra component will be introduced to meet CO2 targets. If a dealer fails to meet the electric vehicle quota, they will not receive an additional bonus, and no deductions will be applied.

■ Terminated dealers should stay

The size of the network is still being negotiated. The contracts were officially terminated on October 31, 2024. However, with new management, Renault has concluded that the network has been overly reduced. Some R2 partners (secondary network) have received contract offers in recent weeks. However, the affected car dealerships will need to adapt their operations to the new corporate identity (CI) by the end of 2025, as explained by Hauth. This requirement may disqualify some dealers from participating. The association needs to disclose how many dealers are involved.

■ Recent reports from dealer circles indicate a risk of significant service gaps within the network. According to Hauth, we must await the decisions of the relevant R2 partners. Some car dealerships that had their dealer contracts terminated are also considering ending their workshop contracts. However, Renault has assured that a comprehensive service presence will remain.

The association views positively the revision of requirements for demonstration vehicles at dealerships with smaller branches. Previously, these dealerships were required to maintain the entire demonstration program, but this policy is set to change at the beginning of 2025.

■ Dacia workshops receive agency contract

The association is pleased with Dacia's progress. From January to October, sales of the Romanian brand increased by 2.2 per cent compared to the previous year, capturing a market share of 2.5 per cent. Managing Director Thilo Schmidt stated in a press release that Dacia aims to continue its growth in the coming year. He noted that the brand has established strong trust among its trading partners, attributing this to the close cooperation with the working group created explicitly for Dacia within the dealer association.

On November 1, 2024, the Dacia network was transformed into a single-tier dealer network. Contrary to the original plan, there is now an official brokerage contract for Dacia-authorised workshops, which the association is happy to report.

Dacia aspires to achieve one million vehicle registrations in Germany since its market launch. The new C-SUV, Bigster, is expected to contribute to this goal. Additionally, Schmidt emphasised that Dacia is well-positioned with the Spring model to meet its fleet objectives.

■ Mobilize Financial Services with new general director

At the conference in Dresden, Karsten Borkowsky introduced himself to the trade. Borkowsky has been general director of Mobilize Financial Services (formerly RCI Bank) in Germany since November 1st. The manager has announced that he will be moving closer to the trade and will continue to rely on field service in the future. There will also be new products and services. Most recently, Mobilize has "adjusted the interest rates to the market," reports Hauth, which makes work more accessible for the trade.

■ The Dealer Council is undergoing a reorganisation.

During the conference in Dresden, Thomas Wahl, the former vice president of the VDRP, was honoured as he bid farewell. The Wahl Group, one of the largest Renault dealers, exits the network. Several other dealers also attended the conference to say goodbye after receiving contract terminations. However, some of these terminated dealers are likely to feel disappointed. At least one terminated R2 partner reported to the editorial team that there was no farewell or acknowledgement from the importer after many years with the brand.

Additionally, the VDRP adopted a new statute during the meeting. The association will undergo reorganisation; there will no longer be a praesidium or a president. Instead, a board of directors will be established, consisting of three to seven members. There will not be a board chairman, and decisions will be made by majority vote. These changes to the statutes will take effect once they are registered with the association registry, which Hauth expects will occur by the beginning of 2025.

The following were elected to the board:

Hans-Werner Hauth (Lüdemann & Zankel)

Andrea Rapp-Kübler (Autohaus Rapp)

Claudia Fahnenbruk (Autohaus Fahnenbruk)

Andreas Klimm (Car Union)

Alexander Sehner (Autohaus Sehner)

Andreas W?lk (Auto Mattern/Autohaus Kleinermeier)

Werner Heck (Autohaus Raiffeisen Eifel-Mosel-Saar)

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Source: kfz-betrieb

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