French car manufacturing giant Renault have dropped their plans for a luxury car that is based on the Mercedes E class Platform, Carlos Tavares, who is the CEO of the firm revealed recently. He went on to explain that Renault had not yet found a business model that worked for them. Though he also added that the project was not dead and a good equation may be found with partners Mercedes sometime in the future.
The proposed Renault luxury vehicle which was likely to have been branded the Initiale Paris, according to the Wall Street Journal, would have cost around £40,000 and was apparently dropped because the current platform of the E class would be close to end of it’s production run as the Renault would be arriving in showrooms. Continuing with the production of a defunct component set would be too expensive and complex, it would also rule out the Renault model being built on a current Mercedes production line. In other Renault News, the Espace, which is currently the firm’s flagship model, is said to be being replaced by an SUV next year.
Renault can be expected to still launch the sub brand in 2014
The company are expected to still launch the Initiale Paris sub brand sometime next year. This will be used on high specification versions of the current mainstream models from the company, starting with the Clio. Since the Vel Satis hatchback was a rather slow seller and was dropped in 2009, the company have been absent from the premium car market.
Renault have a number of co-operative projects lined up
Renault-Nissan and Mercedes have a number of co-operative projects in tow, including sharing the rear engined, next generation Smart platform, which is also expected to be underpinning the brand new Twingo. Mercedes will also be supplying the A-Class platform to the Infiniti brand from Nissan, which will be using it as the basis for the British built Q30.