Renault Group Unveils The New Dacia Logan

Now, in June 2004, Renault is introducing Logan, the first vehicle in the X90 programme. A three-box saloon, Logan offers best-in-class price/space ratio, with five full-size seats and a very large boot. Its features are exactly suited to the types of use envisaged, especially in terms of reliability and robustness. The modern design is in line with international standards, European Union norms and those in force in the countries where it will be sold.

It also supplies all the fundamentals of a modern vehicle, with dynamic features and safety to European standards, as well as an attractive, upmarket design. It is a 100% Renault product (design, technology, development, chassis and powertrain) and will be sold 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.

In Central Europe, Turkey, northern Africa and the Middle East, Logan will be marketed under the Dacia brand, extending Renault's range of vehicles. It will be positioned in the entry-level vehicles segment which in a country like Poland accounts for 30% of the automobile market.

On other markets where Renault has a relatively limited presence, Logan will help to win new customers for the brand. In Russia, for instance, Logan will have a Renault badge and will be competing in the segment of new vehicles sold at between 8,000 and 10,000 euros, which account for 90% of the market.

Logan's modernity and quality, along with the fact that it is 100% Renault technology and will be sold by Renault dealers, will underpin the construction of Dacia's brand image.

Five production sites planned from launch

The international development programme was drawn up in mid-2002. In addition to the Pitesti pilot plant in Romania, Logan will also be made in Russia, Morocco, Colombia and Iran, with the same goals of cost-effective production close to its markets.

Investment of 230 million euros to build a plant in Russia, in partnership with the Moscow City Authorities, was announced in February 2003. Initial production capacity will be 60,000 vehicles a year. In July 2003 Renault decided to invest 22 million euros to build a production line at the Somaca plant in Morocco with capacity of 30,000 units a year. It was decided to assemble the car in Medellin, Colombia, from 2006, with annual production capacity of 44,000 for investment of 16 million euros.

The most recent major decision concerned production in Iran, with the announcement of the creation of a joint venture company, Renault Pars, in partnership with the Iranian automotive industry. Logan will be made in Iran from 2006, with investment of 300 million euros and production capacity of 300,000 units a year.