Renault takeover expected in Australia

UPDATED 04/02/2021 3:00pm: Groupe Renault has today confirmed Sydney-based RVDA, a subsidiary of the Balverona Group owned by Neville Crichton, who also imports LDV, RAM and Maserati, as its new independent Australian distributor from April 1.

The French car-maker said Australia joins several overseas markets moving to independent distributorships as part of its global reorganisation, and that Renault's existing Australian dealer network will remain unchanged.

“This announcement by Groupe Renault secures Australia’s future as an important market,” said Renault Australia managing director Anouk Poelmann. “After recording a strong sales result in a difficult year, Renault is on track to cement its position as a premium mainstream brand in Australia.”

Said Crichton: “We have a strong track record in successfully building and managing world-renowned automotive brands locally. This announcement enables the Renault brand to stay in Australia and allow its customers to continue enjoying the same high levels of service they have come to expect from one of the world’s leading automotive brands.”

ORIGINAL ARTICLE PUBLISHED 01/02/2021: Renault is about to announce it is handing over the management of its brand in Australia to independent distributor Ateco Group, carsales dealer sources insist.

Tellingly, both Renault and Ateco Group issued a ‘no comment’ when contacted by carsales.

Renault has a chequered history in Australia. Since May 2001 it has owned its own distribution business and has built up a network of about 60 dealers.

Before that the French brand spent a period absent from the market after a co-venture with Volvo wound up in the mid-1990s.

When Renault Australia relaunched in 2001, the goal was to become the number one European brand in Australia with more than 20,000 sales. It has never hit those giddy heights.

Its best sales number was 11,525 in 2015. In 2020 it sold 6904 vehicles.

Ateco currently distributes the Chinese LDV brand, American RAM trucks and Maserati luxury vehicles in Australia, but has had widespread experience with a variety of brands in the past.

They include Renault’s French rival Citroen, Kia, Audi, Volkswagen, Fiat, Alfa Romeo, Haval, Great Wall Motors, Ferrari, Chery, SsangYong, Foton, Lotus and Suzuki (NSW).

Ateco is run by the tough and shrewd New Zealand businessman Neville Crichton, whose business has consistently been able to make a buck out of selling vehicles in Australia where factory-owned distributorships have struggled.

Renault has steadily scaled down its Australian operations since mid-2020 as its parent hit a COVID-triggered financial downturn, announcing the withdrawal of all bar the hot hatch version of the Megane from the Australian market and confirming the Renault Clio small car would not be continuing in Australia.

It also pulled its electric ZOE hatch out of the Australian market and cut the Kadjar SUV. However, it did say the Captur and Arkana SUVs would be headed for Australia in 2021.

These moves were a quick turnaround from a late-2019 offensive, which included 30,000km service intervals and a five-year capped price service plan.

The decision to cut its losses in Australia comes just weeks after the ‘Renaulution’ global business plan was unveiled.

Renault isn’t alone in restructuring its Australian business. Both Honda and Mercedes-Benz are planning a swap from franchise to agency, although under that model the factory-owned distributors are being retained and the dealers are being squeezed.