Renault Boosts Rebates for Dealers in China

Renault SA is the latest carmaker to ease sales goals and promise aid to improve the profitability of its dealers in China, Bloomberg News reports.

Renault joins BMW and Volkswagen, who last month agreed to adjust compensation and offer financial aid for their dealers in recognition of China's slower-growing car market.

Dongfeng Renault Automobile Co. has agreed to give its Chinese dealers more and faster rebates and lower the sales targets required to qualify for them, according to Bloomberg. The company has offered no specifics about either measure.

Dealers have been pleading with carmakers for help through the China Automobile Dealers Assn. The trade group said last month at least 50 Toyota Motor Corp. retailer in China have threatened to quit unless the company comes up with 2.2 billion yuan ($353 million) in subsidies. CADA also asserted that 95% of FAW-Toyota Motor Sales Co.'s dealers in the country are losing money.