Renault gets real

The roll-out of Renault's new small and medium car range is the brand's best yet and in terms of its existence locally, probably its last chance.

New managing director Justin Hocevar admits Renault is facing a "moment of truth" in the Australian auto market and must establish "good brand values" among dealers and customers alike. He has the backing of the team at headquarters in Paris, however.

"They've clarified that they're serious about the investment in Australia," he said.

Recent range updates include extra equipment for the Koleos and Kangoo, new Trafic van, hot RenaultSport Clio 200 and stylish Megane models. The attractive Fluence sedan will arrive early next year.

Apart from its worthy commercial lineup -- hitherto underexploited, says Hocevar -- Renault's local passenger car range starts with the RS Clio.

In other markets the Clio starts at around AU$20K but Australians are 'only' offered the top-flight versions because local planning has revolved around the company's belief that "Unless you're able to compete with the Japanese, in a segment dominated by Japanese entrants, you're never going to be anything but a small player."

That's what Renault Australia's previous managing director, Rudi Koenig told the Carsales Network when questioned earlier this year about the availability of more affordable Renault models.

New incumbent Hocevar has a more realistic view of the brand's opportunities in Australia, however. The current Clio is due for replacement in 2012, and the full fourth-generation model lineup "will be of interest to us," says Hocevar.

Regarding potential sourcing of even cheaper products from partner brand Dacia, new local MD for the brand, Hocevar says that's unlikely.

"Us bringing in Dacia or any other badge within the Renault-Nissan Alliance is most unlikely in the foreseeable future," he said.

"The only possibility -- and certainly only at the mid-to-long term stage -- would be for us to consider some products that are sourced from plants from the Renault-Nissan Alliance."

The Renault-Samsung plant in South Korea will produce the new Megane for that market and the Alliance recently started production of Renault cars (the Koleos and Fluence) in India at Chennai.

Those products would be sold in Australia with Renault badges, he says. The likelihood of Renault Australia entertaining the prospect of introducing Dacia, while struggling to establish brand values locally, is a stretch.

"First and foremost, our objective is to get the Renault brand standing firmly on its own feet," says Hovevar.

"The brand is suffering a lack of awareness in Australia, relative to everywhere else in the world. So we're tasked with letting people know what a wonderful product portfolio we have.

"And that doesn't include any other brands."

Hocevar says his team has been working closely with Renault's dealer network and "we've managed to resolve some fundamental problems from the past already, and we're identifying our [dealer] partners for the furure."

November proved a fillip for Renault Australia, seeing a near-30 per cent sales increase, however Hovecar admits it was "off a low base... But that's a sure sign we're starting to peg back ground."

Hocevar says the local outfit is gearing up to include 35 employees dedicated to the French brand by early next year. Renault Australia also has a service level agreement with Nissan Australia for support in areas including HR, IT and parts logistics.

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