Alliance Hones Logistics for Dacia, Duster U.K. Sales

PARIS – Renault’s decision to sell Dacias in the U.K. and Ireland, now that it is building right-hand-drive versions of the Dacia Duster in India, is fusing more of its logistical activities with Alliance partner Nissan.

Renault now is selling the Duster, imported from Chennai, India, and the Dacia Sandero, imported from Romania, in right-drive markets. The French auto maker had planned to use the Port of Teesport for the Dacia imports, which it had used for some other vehicles, but the Alliance found it could reduce costs by combining the ports.

Renault-brand vehicles from its European plants will continue to enter the U.K. through the port of Southampton.

The auto maker is counting on a good uptake of the SUV, for which it has 2,500 pre-orders.

Mark Crockett, Renault U.K. director-quality and service, says SUVs are the fastest- growing segment in the region, up 22% in 2012 over year-earlier, adding it is the only major European market in which sales are growing this year.

Although Crockett says the Duster is “really important” for Renault, the auto maker has stopped importing some low-volume models in the U.K. Deliveries are down 21.4% through February to 3,313 units, but the addition of Dacia showrooms is expected to help shore up sales.

Colin MacDonald, managing director-logistics for the Alliance, says the addition of Dacia volume at the Port of Tyne will lower costs for both Dacia and Nissan-Infiniti imports. He says the Port will handle 495,000 units a year, including Nissan exports from its plant in Sunderland, about 10 miles (16 km) away.

Alliance workers at the port will prepare the imported cars for dealers, and a shared trucking operation will deliver Dacias and Nissans to dealers on the right-hand-drive islands.

“Moving to a single, consolidated port is the latest step in the deepening collaboration between Renault and Nissan,” says Christian Mardrus, head of global logistics for the Alliance.

Logistics have been largely merged in Europe, Brazil, Russia, India and China using common packing materials and integrated shipping. Savings are said to exceed €200 million ($255.3 million) annually,

Nissan has used Port of Tyne since 1995, and the first Dusters for U.K. customers arrived in March.