Business in Romania blog
The business in Romania blog writes about the Romanian business landscape, doing business in Romania, investing in Romania business and debating on business issues in Romania. Check this Blog's Policy here.

Monday, September 20, 2004
Business in Romania blog
PARIS, Sept 19 (Reuters) - French auto maker Renault (RENA.PA: Quote, Profile, Research) will sell its no-frills "5,000 euro" car designed for emerging markets in western Europe from next year, its chairman said on Sunday.

The Logan, currently produced in Romania, will be sold in France and Germany from June 2005 for around 7,500 euros ($9,135) -- above its 5,000 euro starting price in developing countries, Louis Schweitzer told France's LCI television.

The car would hit showrooms in the rest of western Europe after that.

"It was something that we hadn't initially planned. We had intended to sell it in emerging markets only... but when we unveiled the car there was such intense interest and enthusiasm here that we said why not?" Schweitzer said.

The bargain-basement Logan was made for the tougher road conditions of developing countries, so selling it in western Europe is a bold step at a time when most carmakers are trying to nab market share by luring motorists with myriad gadgets and extra comfort.

Schweitzer said the car would fetch a higher price in western Europe due to transport costs from Romania and different tax rules, adding there would be no discounts or special offers.

Renault hopes the Logan, which is made by its Dacia unit and will be sold in eastern Europe, Russia, Turkey, the Middle East, Latin America, China and possibly India, will account for around a fifth of the company's sales by 2010.

The car is a crucial plank of the Renault's international expansion after years of over-dependence on France and the cut-throat western European market. It is essential if the company is to hit a target of annual sales of four million vehicles by 2010.

Schweitzer has said the profit margins on the Logan should be around five percent -- roughly in line with the firm's average -- and that production will start in Russia, Morocco and Colombia next year, and Iran and probably China after that.

He played down speculation that the Logan would simply steal sales from Renault's entry level Twingo city car, noting the new model, which would be sold in Renault dealerships under the "Dacia by Renault" brand, was bigger and would likely attract a different type of buyer.

Posted by Mihai : 9/20/2004 10:40:00 am Romanian Dacia Logan to hit France and Germany
Business in Romania blog
Business in Romania blog

Business Archives

06/01/2004 - 07/01/2004
08/01/2004 - 09/01/2004
09/01/2004 - 10/01/2004
10/01/2004 - 11/01/2004
11/01/2004 - 12/01/2004
12/01/2004 - 01/01/2005
01/01/2005 - 02/01/2005
02/01/2005 - 03/01/2005
03/01/2005 - 04/01/2005
04/01/2005 - 05/01/2005
05/01/2005 - 06/01/2005
06/01/2005 - 07/01/2005
07/01/2005 - 08/01/2005
08/01/2005 - 09/01/2005
09/01/2005 - 10/01/2005
10/01/2005 - 11/01/2005
11/01/2005 - 12/01/2005
12/01/2005 - 01/01/2006
01/01/2006 - 02/01/2006
02/01/2006 - 03/01/2006
This is a Flickr badge showing public photos from Mihai Botea. Make you own badge here.

Add Business in Romania to My Yahoo!

Previous Posts


Business in Romania Feed Burner

Business in Romania is powered by Blogger

This website is proud to be designed by Mihai Dragan

I usually listen to THIS kind of music.