Renault SA (RNO), which is losing sales faster than any other European car maker, is pinning a turnaround in part on the revival of a sports-car brand that’s been dormant for almost two decades.
The plan relies on a partnership with Caterham Group, a British manufacturer of offbeat track cars that typically have exposed front wheels and roll bars rather than roofs. For enthusiasts of Renault’s mothballed Alpine marque, the key factor is just getting the brand back on the road.
“Alpine fans have been waiting for this for 20 years,” said Gerard Bailly, 60, a brasserie owner in Dole in eastern France who has two Alpine cars and runs a club for the brand. “Of the 35 people in my club, at least half will buy it.”
Renault, which also makes budget Dacia vehicles, is shifting upmarket, mimicking the strategy of Volkswagen AG. (VOW) Europe’s biggest automaker relies on Audi for 48 percent of operating profit, even though the upscale brand accounts for just 14 percent of deliveries. Renault’s goal is to carve out a niche in the luxury-car market, which could in turn give its mass-market models an edge.
“It’s a good idea to introduce Alpine as there will be a halo effect” for Renault’s other models, said Neil King, an automotive analyst at research company Euromonitor International.
The move follows similar steps by PSA Peugeot Citroen (UG) and Fiat SpA (F) to attract wealthy buyers. With auto demand in Europe contracting for the fifth straight year to the lowest level in 17 years, mass-market carmakers are looking for ways to boost revenue as the effects of the debt crisis weigh on demand.
Read More: Renault Set to Revive Alpine Brand to Challenge Porsche - Businessweek
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