Logan: Renault's Low Cost 'World Car'
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Case Details:
Case Code : BSTR261 Case Length : 21 Pages Period : 1999-2007 Pub Date : 2007 Teaching Note :Not Available Organization : Renault SA, S.C. Automobile Dacia SA Industry : Automobile Countries : Global
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Excerpts
Project X90
In the mid-1990s, Renault, under the direction of the then
chairman and CEO Schweitzer, made a strategic decision to expand its presence in
markets outside Western Europe...
The Making of the Logan
Logan was a car designed to strict specifications. The designers were given
clear requirements with regard to the size, design, and most importantly, the
cost of the car. Given that Logan was intended to be a world car, Renault also
had to ensure that the requirements of all the markets were met. Renault
approached the development of the Logan as a completely new project. Typically,
low priced cars were stripped down versions of popular cars. Sometimes
manufacturers also remodeled outdated versions of cars sold in the developed
markets, for developing countries...
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Keeping Costs Low
Because the Logan was meant to be sold in markets in
developing countries, the cost of the car was a critical factor in the design.
The Logan was a 'design-to-cost' project. The complete design of the car and all
its elements were finalized keeping in view the targeted sale price of 5,000
Euros. The Logan did not have to stand out in a crowd or make heads turn. But it
had to provide the best possible features at the designated price point.
Therefore, it was designed as a modern car stripped of costly design elements
and superfluous technology...
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Safety
Although Logan was a no-frills car, Renault claimed
that no compromises had been made on safety. The designers adapted the
safety solutions used in state-of-the-art Renault cars to make them
suitable for the Logan. Logan was designed to meet the European Union's
safety norms. The top-end Logan included an Anti-lock Braking System
(ABS) similar to the one used in the Megane. ABS was an optional feature
in the lower-end version. The top-end Logan also included driver and
passenger airbags, and backseat safety belts for three in the rear
passenger cabin... |
Excerpts Contd...>>
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