The French car manufacturer Renault has just opened a special workshop in the largest eastern EU market - even though Poland is not necessarily one of its strongest locations. The issue of sustainability plays an important role.
The French car giant Renault, which in Eastern Europe concentrates on Romania with Dacia production, is actually not that strongly represented in Poland. The group, which operates around 30 plants in Europe, does not have a factory there. And its brands are not among the most popular in the largest eastern EU market. Nevertheless, Renault has opened a new car factory there - a factory that is very different from a normal production site.
In the so-called ’Renew Factory’, which is located around 20 kilometres south of Warsaw, used cars have been repaired since mid-January. The company offers mechanical repairs and bodywork renewal. The aim is to renew the vehicles in an energetically sustainable way and to leave as small a carbon footprint as possible. In addition, the customer should have as low repair costs as possible.
A small part of the decarbonisation strategy
”Germany had 2.8 million cars with 82 million inhabitants. In Poland, on the other hand, the used car market is particularly large, reaching 1.9 million in 2024. Imports were important, increasing by 20.1 per cent to 967,579 vehicles compared to the previous year”
The center is located on the premises of a partner workshop with a total area of 2,200 square metres. The facility also has a parking lot for 600 vehicles waiting for maintenance. In a first phase, 3,600 cars per year will be modernised, which have a gasoline, hybrid, electric or diesel engine. An increase to 5,000 cars per year is planned for 2025. The center employs 30 people.
Renault already operates three similar facilities in Europe - in France, Spain and Turkey. They have repaired around 50,000 vehicles there in the last three years. By comparison, the Dacia plant in Mioveni, Romania, which covers more than 60,000 square metres and employs 6,800 people, has a capacity of around 350,000 vehicles. Due to its small size, this Renault business area is only a niche segment of the manufacturer, which is politically important but has not yet had much significance for business.
In January 2021, when presenting its strategy, the Renault Group announced its goal of becoming a leader in the circular economy with services in the field of sustainable mobility and energy. This approach contributes to conserving resources and is in line with the group’s business focus of increasing decarbonisation.
The manufacturer is working with the Polish KubaGroup, an authorised partner of the brand in Poland. Since no refactory has been operated in Poland to date, this business model, which is based on dealer investments, is perfectly tailored to the company’s own situation, says the OEM.
Vehicles receive a warranty of up to 80,000 kilometres
Background: The modernised vehicles are offered for sale to new owners after repairs to the bodywork, mechanics and interior. This takes up to five days and costs between 600 and 1,000 euros per car. The offer is aimed at business and private customers, who can order the refurbishment of their old vehicles.
The refurbished vehicles are covered by a special guarantee certified by the facility, which lasts up to three years and 80,000 kilometres. Any car of any brand can be refurbished using this process, but only Renault and Dacia vehicles are offered with the “Refactory Certificate”.
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The plant has a fleet of special equipment and tools that can be used to renew, repair or, where this is not possible, replace worn parts using Smart Repair. This includes removing marks on the vehicle’s body using the PDR (Paintless Dent Repair) technique, which allows dents in the body to be removed without subsequent painting. Since painting would otherwise incur additional costs, this could also lead to overall repair costs being lower. This is what the Polish specialist publication “Warsztat” writes.
Poland is not a good market for new cars
In principle, this type of service is lucrative for Renault not least because Poland is not a country where new cars sell particularly well. For comparison: According to ACAE, there were 551,000 new registrations in 2024 - and that’s with a population of 38 million. Germany had 2.8 million cars with 82 million inhabitants. In Poland, on the other hand, the used car market is particularly large, reaching 1.9 million in 2024. Imports were important, increasing by 20.1 per cent to 967,579 vehicles compared to the previous year.
“This is a negative trend that can have serious consequences ,” said Karolína Topolová, general director of Aures Holdings, a car dealer, in an interview with the Autoexpert portal . As a result, the average age of cars is increasing. It is now 12.4 years, said the manager. Another cause for concern is that most imported vehicles come from Germany, which means that Poland is becoming a repository for old cars that are no longer sufficient for other markets.
Renault sees this differently - and is placing more emphasis on Poland. This is apparently also because the Renault brand is the most popular among the used vans that are being imported. The OEM is therefore planning to set up two more facilities of this type in Poland soon - financed by investments from dealers.
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