Internet Sales, the Next Big Thing for Renault's Dacia and PSA’s Rumored Simca Budget Brands

A low-cost company has to find low-cost ways not only to produce, but also to market and sell its products. This is why Renault devised a strategy to sell Dacia models online, through an Internet sales program that will be implemented in Europe.

“Internet sales will quickly become a reality. Many of our customers know what they want before they step into our showrooms, so an online sales channel makes sense,” said Gerard Detourbet, head of Renault's low-cost program.

But that isn't the only reason. Renault will be soon facing the threat of a low-cost rival coming from the French group PSA Peugeot-Citroen. Rumored to receive the abandoned Simca name, the new make could sell its vehicles exclusively through the Internet, as sales chief Jean-Marc Gales hinted at the Geneva Motor Show.

According to Gales, the cars will be built outside Western Europe, possibly in China, and could bring a higher profit margin for PSA than any other low-cost car manufacturer has managed to obtain until now.

"They're all selling cars at lower prices through the same high-cost distribution system that hasn't changed in 90 years. What we're talking about is a radically new approach to car distribution," said Gales. He added that cars will be sold exclusively through the Internet, with test-drive vehicles being offered through rental firms.

In doing so, PSA will not only increase profits, but will also avoid potential damage to the Peugeot and Citroen brands by keeping low-cost cars away from the showrooms.

By Dan Mihalascu

Source: Bloomberg

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Renault PricesTandem-Seat Twizy EV at €6,900

Renault announced today that its 1+1 tandem-seat electric vehicle will go on sale at the end of 2011 with a starting price of €6,900 (US$9,500), including taxes. The Twizy could be even cheaper to buy in countries where electric cars qualify for incentives.

As with the Fluence Z.E. and Kangoo Z.E., buyers will lease the battery for a monthly fee of €45 ($62) for an annual distance of 7,500 km (4,660 miles). According to Renault, this distance covers the vast majority of ordinary motorists' requirements.

Monthly battery subscription aside, Twizy's running costs are estimated by Renault to be 15 percent lower than those of a three-wheeler scooter. These costs include insurance, maintenance and energy (battery lease plus electricity).

The 2.4 meter long Twizy has a maximum driving range of 115 km (72 miles), with a full charge of its batteries taking three and a half hours through any domestic supply.

You can read more about the Twizy in our previous post here.

By Dan Mihalascu

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Geneva 2011: Renault's Sporty Looking R-Space Small MPV Concept

Renault is offering us a glimpse of its next generation Scenic with the new R-Space concept model unveiled today at the 2011 Geneva Motor Show. The R-Space is the third concept model after the 2009 DeZir and the Juke-like Captur crossover, which is also on display in Geneva, to showcase the French brand's new design language conceived by Renault's chief designer, Laurens van den Acker.

At 4,250mm meters long, the R-Space is slightly shorter than the current Scenic (4,344mm) and features a much more expressive exterior design. The interior styling is quite futuristic with the floating dashboard and the form of the seats echoing those of the DeZir concept car.

“We provided a strong visual and functional contrast between the driver environment, where the focus is on driving pleasure, and a surprising and highly-original rear section conceived as a play space for children," said interior designer Alexandre Gommier.

One of the highlights of the R-Space is found at the back, where twenty-seven miniature motors power height-adjustable cubes that can take different shapes: an all-flat surface for load carrying, a bench for three passengers, a table or a random configuration that children could create themselves – the last one only when the vehicle is parked.

The MPV concept also previews a new range of fuel-efficient turbocharged gasoline engines as the R-Space is powered by a 900cc three-cylinder petrol engine, which uses turbocharging and direct-injection and is linked to a double-clutch EDC transmission.

This engine, which produces 110 hp and 160 Nm of torque (118 lb-ft), previews the new range of modular TCe engines, called Energy TCe, that Renault will launch in 2012. The R-Space has an average fuel consumption of just 3.7 liters/100 km (63.5 mpg) and CO2 emissions of 95 g/km, thanks to the fitting of an intelligent DRIVINGECO² system, which automatically adapts engine response in relation to the various parameters influencing energy consumption.

The Renault MPV can reach a top speed of 200 km/h (124 mph) and sprints from 0 to 100 km/h in 11 seconds.

By Dan Mihalascu

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