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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Please note:
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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Excerpts Contd...
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...
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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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