Renault's Diabolical Plan: Take Over the World â One Logan at a Time
By Michelle Krebs March 6, 2008By Pál Négyesi
GENEVA -- Renault's Dacia news conference at the Geneva International Motor Show on Tuesday was jam-packed with reporters jostling for space to take a first look at the new Sandero, the hatchback variant of the Logan.
With sales of more than 360,000 units in 2007, the Renault Logan is on the way to fulfilling its promise and becoming a world-dominant car. It is a cornerstone of Nissan-Renault CEO Carlos Ghosn's Commitment 2009 initiative — increasing sales of Renault by 800,000 between 2005 and 2009.
Logan is now being built on four continents, but the main plant is still the Dacia facility in Pitesti, Romania, where more than 220,000 complete cars and about 100,000 unassembled kits were produced last year.
The Sandero, first shown before the Frankfurt Motor Show in the fall before going into production in Brazil, features a more dynamic front end than the staid Logan sedan. Geneva was the first opportunity for most European journalists to get a good look at the hatch, which will be marketed all over Europe later this year.
The Logan range — sold as a Dacia or a Renault (and in Mexico as a Nissan) — now comprises a sedan, a hatch, a roomy wagon, a van and a pickup truck. There's talk of a lifestyle-SUV variant.
Logan and its derivatives are now being produced in Romania, Russia, Morocco, Colombia, Brazil, Iran and India. A new plant with a capacity of 400,000 will begin production in 2010 in the Moroccan city of Tangiers — and it will be used mainly to produce members of the Logan family for sale in Africa. By that time the Romanian plant will be able to produce 350,000 cars, the Russian plant will be expanded to build 120,000 and Iran will churn out 300,000 Logans.
Even AvtoVAZ, the dominant but struggling Russian carmaker that recently came under the control of Renault, is considering the Logan platform for its forthcoming C-segment family vehicle, which will add 200,000 cars a year to the mix.
Renault makes good money on the Logan: The car's operating margin jumped to more than 6 percent in Europe last year from less than 3 percent in 2006, and this target will be reached globally this year.
Renault hit the bull's eye with the Logan and it is no wonder competitors are preparing their own no-frills entry-level models. But the French company is not resting on its laurels. The 157.5-inch-long, 69-inch-wide Sandero is a fresh design, equipped with either a 1.5-liter diesel or a 1.4- or 1.6-liter gas engine. Equipment includes ABS, emergency-brake assist, a host of airbags and more. Its spacious interior is comfortable for five people and it is rumored to be priced at less than €8,000 (about $12,200) in Germany.
Photos by Renault
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