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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Logan's Specifications

The Logan was a three box saloon, with a 'tall boy' design aimed at maximizing interior space. It had a wheelbase30 of 2.63 meters. The car was designed to carry five adults, and had a generous boot space of 510 liters (bigger than in many cars, including top end ones).

Although it was not designed as an 'off road vehicle', Logan was given a ground clearance of 155mm (about one inch more than other comparable cars), to be able to tackle poorly maintained roads in its target markets. Logan was initially developed with two engine versions - a 1.4 liter engine with 75 horsepower and 83 lb-ft of torque, and a 1.6 liter with 90 horsepower and 95 lb-ft of torque...

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The Launch and its Aftermath

Renault launched the Logan in June 2004. The entry level version was priced at 5,000 Euros (around $6,000 at the time), making it the lowest priced sedan in Europe. It was first launched in Romania and then in the Central and Eastern European markets...

The Prospects

After the success of the Logan saloon, Renault launched the Logan MCV, a station wagon, in September 2006. The MCV came in five and seven seat versions, and was priced between 8,000 Euros to and 11,500 Euros. This vehicle used the same engines as the Logan saloon. In January 2007, a minivan version was launched. This was priced between 6,700 Euros and 8,800 Euros. A hatchback version was expected to be launched in Romania in 2008. According to analysts, the Logan's biggest strength was its low price when compared to other cars in its class like the Chevrolet/Daewoo Kalos, Hyundai Accent, Kia Rio, Skoda Fabia, Ford Focus, and VW Golf...

Exhibits

Exhibit I: A Note on Dacia
Exhibit II: 'European Car of the Year' Winners from Renault
Exhibit III: Annual Income Statement -Renault
Exhibit IV: Top Automobile Manufacturers in the World -2006
Exhibit V: Logan's Technical Specifications Key Dimensions
Exhibit VI: Sales of Renault and its Subsidiaries - 2006


30]  The distance between the center of the front wheel and the center of the rear wheel.

 

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