Renault moves toward build-to-order sales model

Renault is drastically rethinking its strategy for distributing new vehicles, Chief Operating Officer Patrick Pelata said. The carmaker is moving towards a system that relies more heavily on a "build-to-order" instead of a "build-to-stock" strategy. Dealers may have to wait a few weeks for new cars under the build-to-order system, but are able to set out the specifications they want, Pelata said. He added that the company's aim was to become more reactive and avoid having stocks of ageing vehicles. Pelata said Renault is aiming to go beyond its target of cutting stocks of unsold cars by between 800 million euros ($1 billion) and 1 billion this year. The company set the target last month, as it scrapped its key 2009 profit targets and dropped its dividend after posting a 78 percent drop in 2008 net profit.