Renault-Elf: a new business model with Renault after sales
In December, Philippe Charleux, Vice-President of Total Lubricants, announced the new contract with Renault, signed for a period of 5 years. Total and Renault are extending their cooperation agreement in the fields of Research and Development, commercial relationships with Renault after-sales networks, and motorsports.
This new cooperation is based on a Drop & Shipment business model and is implying a new cobranded Elf-Renault range that together with the Elf brand will be the exclusive recommendation of Renault for their dealer network. In few words, Drop & Shipment mean centralized invoicing to Renault, and delivery to each of their dealers, and it is new for TOTAL.
But, in Romania, we are already familiar with this business model since we are dealing with Dacia’s genuine oil, so we know very well how to cope with the challenges of this type of commercial relationship. In the same time, we will continue the direct business with some of the Renault dealers who have signed previously investments contracts with us. To them we will continue to supply Elf range as before.
The benefits of this new agreement are that we reinforced our partnership with Renault, already 47 years old, and that we created a direct interest for them in pushing the cobranded products in their network. We will have a better market share, which means higher volumes for us.