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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Logan's Indian Launch Contd...
The Logan was Renault's world car9 . As of
mid-2007, it was being manufactured in seven countries - Romania, Russia,
Morocco, Colombia, India, Brazil, and Iran - and sold in 55 markets. The Logan
had been conceptualized at a point in Renault's corporate history where the
company had made a strategic decision to explore markets beyond Western Europe,
the United States, and Japan. Consequently, Renault decided to design a new car
that could be sold in the developing parts of the world - a market that was
often not considered significant by the major auto manufacturers. The Logan's
design and development had been meticulously planned around a targeted sale
price of 5,000 Euros, so as to be affordable to customers in developing
countries.
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This made the Logan the cheapest car in its class when it was
launched. Eventually, the Logan became so popular that there was demand for it
even in Western Europe, and Renault was able to launch a slightly modified
version of the car in that market with some success.
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Background
Louis Renault (Louis), an engineer and the son of a
textile businessman in France, set up an automobile company called the
Société Renault Frères in 1898. His brothers Marcel and Fernand Renault
were his partners in the business.
Louis looked after the technical side of the company, while his brothers
took care of the business aspects. Renault was primarily an assembly
operation, and procured components like engines, tires, radiators,
gears, steel, and electrical equipment from component suppliers to
assemble the cars. |
The first car made by the company, the Renault Voiturette
1CV, was sold in 1899 to a family friend who, after a test ride, had been
impressed with its ride quality. In the initial years, Renault was an active
participant in motor racing events, which helped the company gain publicity.
Both Louis and Marcel raced for the company, and won several prizes...
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