inteRvieW

Paddy Magee is the Country Operations Director for Renault Group Ireland. Fleet Car’s Cathal Doyle sounded him out on the state of the fleet market in Ireland currently, and Renault’s plans for the sector.

Some brands are indicating that the current vehicle shortage is forcing them to prioritise private over fleet customers. is this a situation Renault ireland is facing?

Supply is tight and, as a result, we’re finding that vehicles are registered and delivered pretty much on arrival. That’s based on customers ordering on production plan rather than buying from stock, but what we have been finding is that on most models, we’re receiving the vehicles we need, but with longer lead times than we’ve been used to. We find that our long-standing fleet customers have developed good relationships with the fleet experts in Renault dealerships, and between them they are able to manage the longer lead times.

is there likely to be any underlying trends in the sector as a result of covid and the current shortages? - for instance, some industry professionals are suggesting less discounting for fleet customers in the future. if so, what do you see are the key differentiators that will enable brands like Renault be successful in the company car market going forward?

Strong dealer network driving Renault Ireland’s fleet ambitions during challenging times

Competition isn’t going away. Even though all brands are currently experiencing shortages, they won’t last forever. So, it will remain important to have an exciting product with strong appeal for drivers, as well as optimum cost of ownership, aftersales service, and finance. Exciting new cars and vans such as this year’s all-new Mégane E-Tech 100% electric, all-new Kangoo and Kangoo E-Tech 100% electric, and 2023’s Trafic E-Tech 100% electric will get drivers and owners excited. Meanwhile our network’s exemplary sales and aftersales capability, and the finance solutions provided by Renault subsidiary, Renault Bank will continue to make Renault ownership affordable and straightforward for fleets.

We are starting to see some car brands, particularly those with their own financing capabilities, move into the direct fleet leasing market. is this an area that Renault sees opportunity in?

More than ever, the current climate has demonstrated that our strength is our network. In fact, the network is growing, with Keary’s taking over the South Dublin territory, as well as new dealerships opening this month in Bray and Clonmel. Renault dealers are experts at looking after both retail and fleet customers – in partnership with Renault Bank, they look after our customers throughout the purchase and ownership of their vehicles. Every single one of our Dealers provides a range of financial products on both passenger and commercial vehicles to make ownership easy for fleets of all sizes.

What are we likely to see in ireland in relation to the Mobilize business unit within Group Renault? Specifically, will Renault ireland be adopting the objectives as outlined on targeting small to medium sized fleets as well as mobility companies and last mile operators?

of the global Renault Group. Mobilize is dedicated to finding new ways of reaching and satisfying customers in a world that is changing rapidly, especially in terms of technology. So, absolutely, local adaptations should be expected but in the medium to long term future, Mobilize will enable Renault Ireland to deploy pay per usage payment plans for customers and provide additional services that cater for our customer’s mobility needs.

Do you target fleet customers at a dealer or national distributor level (or both?). how important is specialist fleet knowledge within dealerships in view of changing purchasing habits?

Both – several of our fleet customers have a national footprint and, in some cases, their first contact with Renault may be via our fleet department. But all our customers deal with the Renault network and most deal with Renault Bank. Within our network we have Pro+ specialists, experts in looking after customers for whom vehicles are an integral part of their business. And whether your fleet is a handful of vehicles or several hundred, it’s important to know you can access our services throughout the country.

What would you identify as the key strengths of the Renault brand towards achieving success in the fleet market?

Renault Group has a long history as one of the strongest fleet performers in Ireland. The enduring cornerstone of this success has been the relationships between Renault dealerships and our key accounts. It comes down to a level of service in sales, finance and aftersales which is second to none, ensuring easy ownership, optimised total cost of ownership and minimised downtime. Combined with amazing new vehicles such as all-new Mégane E-Tech 100% Electric, all-new Kangoo and Kangoo E-Tech 100% Electric and next year’s Trafic E-Tech 100% electric, we’ll continue delivering in 2022 and beyond.

How Cupra is successfully creating an identity for itself

In Terramar near Stiges to the south of Barcelona at the start of this month for an update from Cupra on forthcoming models, the VW Group owned Seat offshoot is a brand on an interesting trajectory. The Autòdrom de SitgesTerramar, a former racing circuit, was the location in 2018 for the official launch of the fledging company and if, for those of us there at that time, there was a widespread suspicion that this was little more than a vanity project for then Seat President Luca de Meo (now the main man at Renault), five years on opinions are having to be revised.

The motor industry is replete with mainstream car brands creating upmarket derivatives in the hope of giving their brands more cachet while increasing profit margins. Some have been pretty successful - Toyota offshoot Lexus being a case in point. Less so Ford’s recent half-hearted attempt with its Vignale brand which proved that merely putting a new badge and some extra toys on an existing product isn’t going to cut the mustard with the buying public.

If there was a degree of cynicism five years ago at Cupra’s launch, it was driven to a certain extent by the fact that the first models were just rebadged versions of existing Seat Ateca and Leon models. Understandable given the brand’s short gestation period, but it was the launch of the Formentor in 2019 that hinted that Cupra could offer something different within the rather crowded Volkswagen Group portfolio. A low-slung crossover that also introduced plug-in hybrid technology to the brand, it has brought a style and sportiness to a sector dominated by rather stodgy identikit models. It’s also proved rather popular with over 100,000 units sold to date.

Equally, Cupra’s next new product, the all-electric Born, has achieved that difficult task of looking and feeling quite different to the model with which it shares its running parts, the Volkswagen ID.3.

At Terramar, Cupra took the rather unusual step of simultaneously revealing its next three models. First to arrive in 2024 is the Terramar, the name paying homage to the birthplace of the brand. A mid-sized sporty SUV built on the Volkswagen Group’s MQB platform, it will be the last Cupra to be launched with internal combustion engines, but also comes with plug-in hybrid powertrains that promise to deliver around 100km in all-electric mode. Bigger than the Ateca at 4.5m long, it will be produced at Audi’s Györ plant in Hungary.

Due at the end of 2024 is the all-electric Tavascan, Cupra’s take on the Volkswagen ID.4 / ID.5 which is expected to be offered with a range of battery options including a sporty 77kWh allwheel-drive version.

A compact electric hatchback just over 4m long is the third new model on the way. The Urban Rebel, due in 2025, is a Cupra led project for the VW Group, using a new platform that will also see Skoda and Volkswagen versions.

According to company CEO, Wayne Griffiths, Cupra is a disruptive new brand that’s different to what our parents and grandparents were driving. “We want to build emotional cars with great design and performance that straddle mainstream and premium”, he said.

The question is where does this leave Cupra’s parent Seat? The brand has long struggled for a clear identify within the wider Volkswagen Group, variously carrying budget and sporty mantles without ever being clearly defined as either. It was noticeable at the recent event that while the wider Volkswagen Group was frequently referenced, I can’t recall Seat being mentioned even once during the presentation.

Officially the line is that it’s business as usual for Seat, and that the focus is currently on Cupra as the brand is being built up. But with the new upstart clearly having internal support within the VW Group, and Seat struggling on with an ageing line-up and no electric models in the pipeline for the immediate future at least, one has to wonder whether the Spanish brand founded in 1950 will be allowed to slip into obscurity.