PARIS (AP) _ French carmaker Renault SA said Friday it has agreed
with Volvo Cars, a subsidiary of Ford Motor Co. (NYSE:F), to not
renew a distribution agreement when it expires at the end of next
Starting Jan. 1, 2008, Renault will establish its own subsidiary
to distribute its vehicles and spare parts and provide after-sales
services in Sweden, Norway, Finland and Denmark. Renault said it
would retain the existing dealer network in those four markets for
the sale and servicing of Renault cars and light commercial
The distribution of Renault cars and light commercial vehicles
and spare parts, as well as Renault after-sales services in the
Nordic countries, had been done by Volvo Cars through a network of
dual-branded, Volvo-Renault dealers.
Renault sold more than 30,000 cars in the four Nordic markets
last year, compared with just 6,500 in 1982 when the initial
distribution agreement came into effect.
The most recent renewal of the importer agreement between the two
manufacturers was in 2003, for a period of five years.
The decision to end the arrangement won't affect Renault
customers, the company said.
Renault said the decision to set up its own distribution network
is part of a program crafted by its chairman, Carlos Ghosn, and
aimed at increased profitability through cost-cutting, quality and
the group's product line.