Renault has confirmed its commitment to daily rental. This follows a poor year for the French firm that saw volumes drop by more than 31% and the relinquishing of the number four sales spot to arch-rival Peugeot during the first six months of 2006.

“There has been a reduction in daily rental business and a significant drop in Motability deals, following Ghosn’s (Renault’s chief) commitment to increase volumes, but not at the expense of operating profit”, said Keith Hawes, Renault fleet boss.

Speaking to Fleet Week at the London Motor Show, Renault’s fleet boss denied there would be a complete shift away from short cycle fleet business.

“We will never pull out of daily rentals and will maintain our close relationship with Avis, Europcar, National and Thrifty. If you handle it right, you can make money out of short cycle, it all depends on the balance of models” said Hawes.

Hawes went on to explain the complex quota system introduced by the French brand. Quotas for specification colour and engines have been put in place for high volume models.

“We expect to see the system start to reap big residual rewards in the near future.”