Renault grows in its distribution network

Renault is reducing the airfoil of its distribution network. During a social and economic committee (CSE) held this Thursday, the executives of Renault Retail Group (RRG), the manufacturer's distribution subsidiary, announced plans to sell ten establishments in France out of 94 which he owns in France.

A total of 1600 employees are involved in this project. According to sources close to the manufacturer, this scenario has been under study for almost a year. RRG, which posted a loss of nearly 200 million euros in 2018, reduced the bleeding. In 2019, RRG lost 40 million euros. In a press release Renault declares that it has "identified reliable and robust buyers - already marketing the Group's brands - enabling continued activity and job retention".

Renault in the red in 2019

A 100% subsidiary of the manufacturer, RRG is the second largest automotive distribution group in Europe with two million customers. It markets the Renault, Dacia and Nissan brands and has 12,000 employees, spread over 275 sites, in 14 European countries (including 94 in France). In 2019, Renault Retail Group achieved 35% of sales volume in France, 20% in Europe.

In addition to the sale of these establishments, Renault will also sell the headquarters of RGG, a building located on Boulevard de Grenelle in Paris. In total, the operation should bring in several hundred million euros to the group which announced in 2019 a net loss of 141 million euros, the first in ten years.