With head of fleet Justin Costello on board, and new product launches, Renault’s fleet fortunes seem to have turned around. So, we asked Wood how Renault was planning on keeping this fleet success going?
He explained: “As you say, we’re going from strength to strength in fleet, we are growing exponentially this year in share compared to last year, and that is testament to Justin and the key relationships he’s building in the fleet industry. We’ve seen that with several awards including your ‘Most Improved Manufacturer of the Year’, at last year’s Business Car Awards – so thank you for that!
“I think the key point is, we are growing our relationships with key corporate customers, the likes of whom Renault haven’t had a previous connection. And we’ve got our network more engaged in local fleet, because we’ve got a clear strategy to attack the right channels.
“So, salary sacrifice on battery-electric is a key priority moving forwards, and we’ve seen success on Megane and Scenic. For me 4 is the next chapter – because I think it has got real appeal for salary sacrifice.
“Our ‘Back in Business’ strategy was revealed at our dealer conference in January, when we had the whole retailer network together to launch the Renault 5 E-Tech. There, we laid out our plans to grow fleet through our strategy. As a result of that, we’ve seen multi-franchise retailers paying very close attention to Renault and seeing the opportunity, with the growing portfolio.
“We’re also seeing more of the regional independents taking on new ‘Fleet Specialists,’ to make the most of their local business opportunity, because we have cars and vans. I think that’s a unique position in the market.
“If you look at it simply, historically we had under 1.5% of the fleet market, for a brand that delivered over 3% market share. Today we’re at 3.6% market share, we have the product portfolio where we plan to grow the percentage of our core fleet, and you only do that by taking your share of the right channels.
“The right channels for me are, corporate major fleet, and local fleet through the network – they are the two priorities for me.”
We moved on to talk about the new 4 E-Tech, asking Wood if he thought it would shake up the EV fleet market like the 5 has, and where he thought, drivers were going to be conquested from?
He said: “What we have with 4 is the reimagination of another icon. It is an embodiment of the best of France, and I think the way it has been reimagined, is a design with real emotional appeal – but with huge practicality. With its 420-litre boot – the biggest in its class, it has real heart and head appeal.
“In terms of fleet, I really see this car is going to have huge salary sacrifice appeal, because it’s a car that’s going to be bought for many, many reasons. It is for everyone, everywhere. So, for salary sacrifice, where it’s being used for personal use, we think it has got great rational appeal, in terms of cost, and practicality. And corporate, why not as well? I’m sure for those with job needs, the 4 will work really, really, well. For me, salary sacrifice and leasing, 4 has got a great opportunity.
“I think what we’re seeing with 5, is that it’s a car fundamentally that people look at, and they absolutely love. And they want that car, because of its emotional design appeal. It shows how many of the population are prepared to go electric, because of the combination of accessible pricing and design appeal.
“I think 4 is the next iteration of that. It sets new boundaries in its segment in terms of accessibility, but also the practicality, and the magic of the 5. I think if we do that, you’ll see more fleet drivers coming out of combustion vehicles and going electric, for the first time. I also think it’s another design that will pull people into the Renault brand that have not considered us before.
“I think buyers will come from a huge spectrum of brands, there will be fleet drivers in premium brands, that simply love the design and want it. There will be B-SUV drivers who want to go electric, and supermini drivers who need more space. I think it will be a huge success, with a huge spectrum of fleet buyers.”
We moved on to discuss 4 spec levels, and Wood explained that Renault believes the 4’s upper equipment grades will be most popular in fleet, as has been the case with the 5.
He said: “Techno and Iconic are expected to make up most of the fleet mix. Customers really appreciate the features of these versions, such as the illuminated grille which we know will be very popular.”
