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Renault Dacia Logan Review

September 2005
Filed under: RENAULT Car News | RENAULT Headlines

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In the late 1990s new prospects began opening up rapidly for the automobile industry. The world's three biggest markets,Western Europe, the United States and Japan, had become replacement markets offering no further potential for major growth. Until then, 80% of the world population had had only limited access to cars, but new, promising and buoyant markets were starting to emerge.

"In 1995, to ensure Renault's profitable growth, I took the decision to expand the company to markets outside Europe," recalled Chairman and Chief Executive Officer Louis Schweitzer, announcing an annual sales target of 4 million vehicles for the Renault group by 2010.
The scale of the challenge and the conditions needed for success were identified.The regions targeted for growth cover huge geographical areas.While they are extremely varied, they do share some features such as high rates of economic growth, albeit with marked cyclical swings. Potential buyers belong to a gradually-emerging middle class that will be the automobile market's chief source of future growth. These new customers are fully aware what vehicles are available worldwide but cannot always afford a new, modern car.When buying a car is possible, it is often regarded as an investment.

Another feature of the emerging markets is that driving conditions are often difficult, with extreme climates, roads in need of repair, irregular vehicle maintenance and cars frequently carrying heavier loads than they were designed for. Some of these markets are closed to imports in order to protect local industry and put pressure on international automakers to build manufacturing facilities in the countries concerned.

With this in mind, in 1998 Renault began looking into the possibility of making a modern, robust and reliable family car at an entry-level price of €5,000. The following year, Jean-Marie Hurtiger was put in charge of the project. "It was a fascinating challenge," he said."We had to start from scratch on the first vehicle developed by Renault for sale initially outside Western Europe, and a programme in which financial considerations were key." Right from the start, the goal was to meet the demands of customers for whom a car was a major purchase and whose chief criteria were the price, reliability and durability.

The second stage of the project came about early in 1999 when Renault took over Romanian automaker Dacia. As part of the deal, Renault acquired a production site that was technically obsolete but had high competitive potential, located right at the heart of targeted markets in Central and Eastern Europe."It was another completely fresh start.We had to modernize the plant and organization methods, all in under five years. But we could rely on Renault's commitment and on the valuable input of our Romanian colleagues," said Christian Estève, the first Dacia general manager appointed by Renault. Pitesti, the leading assembly site in Romania, was completely overhauled and brought up to a similar level of efficiency and quality as the Renault group's other manufacturing sites, which rank among the most efficient in the world automotive industry.

The car itself, to be called Logan, was defined fairly quickly, with a model close to the final version produced as early as the autumn of 1999. Development was handled entirely by Renault's engineers based at the Technocentre near Paris. It is a three-box model of simple design featuring five full-size seats and a large boot, and built to comply with the safety and emission standards in force in the European Union. Renault decided to use its 1.4l and 1.6l petrol engines, which have proved reliable and inexpensive to run. By the end of 2001 the vehicle was part of a broader programme that will eventually include several body styles and engines so as to meet the needs of different types of customer who may use the car for both business and pleasure.

Now, in June 2004, Renault is introducing Logan, the first vehicle in the X90 programme. A three-box saloon, Logan offers best-in-class price/space ratio, with five full-size seats and a very large boot. Its features are exactly suited to the types of use envisaged, especially in terms of reliability and robustness. The modern design is in line with international standards, European Union norms and those in force in the countries where it will be sold.

It also supplies all the fundamentals of a modern vehicle, with dynamic features and safety to European standards, as well as an attractive, upmarket design. It is a 100% Renault product (design, technology, development, chassis and powertrain) and will be sold under the Renault brand on some markets.Whether the Dacia or Renault badge is used will depend on the characteristics of each market and on how long and in what circumstances Renault has been established there.

In Central Europe,Turkey, northern Africa and the Middle East, Logan will be marketed under the Dacia brand, extending Renault's range of vehicles. It will be positioned in the
entry-level vehicles segment which in a country like Poland accounts for 30% of the automobile market.

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