Renault drops plan to develop flagship sedan with Mercedes-Benz

Article by Christian Andrei, on March 16, 2013

Renault has withdrawn from a joint project with Mercedes-Benz to develop an upscale, rear-wheel drive sedan for the French automaker. A Renault spokesperson told Automotive News Europe that after determining that the business deal wasn’t favorable, it then decided to halt a feasibility study for a sedan based on the Mercedes E class platform.

Renault had been hoping to create a profit-boosting flagship model ever since it stopped making its poor-selling Vel Satis in 2009. This sedan would have had a price tag of around 50,000 euros ($65,000).

In a Wall Street Journal report, it was revealed that Renault scrapped the project since Daimler was offering parts from its existing E class, which would be close to the end of its life cycle when Renault would begin manufacturing its own version. Renault hasn’t yet made any comment to this report.

The spokesperson said that Renault's present partnerships with Daimler are still in place. According to Gaetan Toulemonde, a Deutsche Bank analyst, Renault will probably find another partner to help it develop an upscale sedan model. He said that there had been numerous failures among automakers that launched luxury models. To reduce the risks, Renault had to team up with another company to reinvent itself in the high-end segment.

This means that as talks with Daimler have broken down, Renault will probably seek someone else. At the Geneva Auto Show, Renault Chief Operating Officer Carlos Tavares told Automotive News Europe that the company will focus on the models that will succeed the Laguna large sedan, Espace minivan and a new large crossover.

After discontinuing the Vel Satis, Renault presented the Latitude in Europe, a variant of the Samsung SM5 produced in Korea. JATO Dynamics said that the Latitude’s European sales have fallen by 70% to 2,085 units last year compared to the prior year.

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

In the minivan segment, the 2017 Chrysler Pacifica is already impressive in terms of fuel economy figures – as rated by the United States Environmental Protection Agency. In fact, the...
by - December 2, 2016
Having a blacked-out Bentley Mulsanne Speed is already menacing by itself but by naming it as the Bamford X, it became all the more imposing. This model was made by...
by - December 2, 2016
We have good news for those who are waiting for the latest version of the Mazda CX-5 compact crossover. It was just unveiled in November at the 2016 Los Angeles...
by - December 2, 2016
Those familiar with racing know that Marco Wittmann’s win during the 2016 Deutsche Tourenwagen Masters held last May was noteworthy as it was his second title in four seasons. In...
by - December 2, 2016
Volvo has revealed that while its products are used by a number of police organizations around the world, it will be the Swedish police that will get the first chance...
by - December 2, 2016
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries