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A cheap car for Renault

July 2004

By Maurice Glover      

PARIS, France – Models in the X90 programme will account for a significant proportion of the four million passenger cars the Renault group is planning to produce each year by 2010.

Renault CEO Louis Schweitzer announces the €5,000 Dacia Logan
Schweitzer at Dacia Logan launch

Target annual production of 700,000 units has been set for the so-called €5,000 ($6,100) car range, but demand from new markets may well drive the figure higher, said CEO Louis Schweitzer when the new range was previewed at the company’s Technocentre design studio at Guyancourt.

“Our potential in Russia could well double the 120,000 units that were forecast, and I believe a similar situation might apply in Iran,” he told AE at the unveiling of the first vehicle in the ambitious project to create a spacious and modern passenger car with an entry-level price lower than the cost of the average used vehicle.

Badged as the Logan and crucial to the rejuvenation of Dacia, the Romanian manufacturer that first became part of Renault in 1999, the three-box model will be marketed as offering the best-in-class ratio of price relative to size.

“This is a full five-seater that comes with the ability to carry large amounts of luggage in its boot, boasts design to international standards and is a 100 per cent Renault product.

“It supplies all the fundamentals of a modern vehicle, with dynamic features and an attractive, upmarket appearance and we will sell it under the Renault brand on some markets. Whether the Dacia or Renault badge is used will depend on the characteristics of each market and on how long and in what circumstances Renault has been established there,” explained Schweitzer.

According to the company, Logan will be a Dacia in central Europe, Turkey, northern Africa and the Middle East.

“In other markets where Renault is relatively unknown, Logan will win us new customers. I think our chances of success in Russia are particularly good because 90 per cent of vehicles sold there cost between €8,000 ($9,800) and €10,000 ($12,300),” added the Renault CEO.

In addition to the Pitesti pilot plant in Romania, the car will also be manufactured in Russia, Morocco, Columbia and Iran, with investment announced to date in new facilities totalling €568mn ($700mn).

Company officials say the markets being targeted cover a wide mix of economies and business environments but insist they offer high growth potential for the automotive sector.

Unique in the company’s history, the X90 is the first Renault designed to be marketed outside Western Europe – at least initially. On sale from the end of this year, Logan will be introduced with 1.4 and 1.6 litre petrol engines. From 2007, other body styles will be added, including an estate and a small van.

Engineering project manager Odile Panciatici said the car’s design featured tried and tested solutions to aid cost reduction and reliability. “We decided on traditional types of steel because they are easy to adapt to production methods where processes are less automated and can be sourced locally.

“Limitations of stamping have also been taken into consideration, and we’ve kept the number of contours in the bodywork to a minimum to simplify the production of manufacturing tooling, but despite the lack of automation, it is still possible to fit a one-piece exhaust system to the underbody,” he said.

Logan’s B platform body structure stems from the Alliance B platform and the Clio and uses the maximum number of shared components in order to reduce cost. The same rear view mirror is used on either side of the vehicle, and fitting a single winder in the rear doors avoids the cost of adding a quarterlight.

The car’s heating system comes from the next-generation Clio but its engine compartment is taken from the current Clio, with which it shares engines, front suspension system, steering and rear brakes, as well as instrument panel, door handles, steering wheel and column switches.