Renault Slashes Prices in a Bid to Maintain Sales

With most of the European automotive market showing signs of distress in the past two months, the automakers doing business here are forced to react in one way or another, in order to avoid falling below the bearable sales level.

In France, as in some other countries in Europe, especially those in the east, Renault is experiencing troubles as well, troubles which are forcing its dealers to come up with discounts that go to as much as 45 percent of the price of a Clio model, one of the brand's most popular badges.

In Romania, the birth place of Renault's low cost Dacia brand, the price of the same model has been brought down to level of a Dacia Sandero, threatening the sales of the local brand. The Clio retails for EUR7,990, 100 euros above the starting price for the Sandero. The discounts here are of up to 45 percent as well.

According to French BFM radio, the bad situation has been amplified by the fact that the so-called scrappage scheme ended in the country last December, perhaps sooner that the dealers would have wanted and apparently sooner than the economy could recover enough to sustain itself.

As for what's to come, analysts are anticipating a significant drop in the sales figures for May, which is just ending. Since the numbers are not in, no accurate information can be provided at this time.

"We cannot communicate on May data before early June ... The market for May in France seems down," a Renault spokesman was quoted as saying by Reuters.