Somebody Is Doing It Right!

unit731 · December 9, 2008

Article Tools: Print Email Order Reprints INDUSTRY IN CRISIS

Renault's Logan resists European slowdown

Lawrence J. Speer

Automotive News Europe

December 8, 2008 06:01 CET

PARIS -- Car sales are tumbling across Europe, but Renault's low-cost Logan car is defying the market collapse.

"We are resisting the crisis," said Arnault Barral, marketing director for Renault's Dacia subsidiary, which makes the Logan range.

"There's always been a market in Europe for pragmatic customers who are looking for the combination of price, equipment and versatility seen on the Logan. The crisis appears to have accelerated this phenomenon in our favor," Barral said.

Renault is benefiting from the launch last summer of the Logan-based Sandero hatchback as well as the tough economic conditions.

The Logan continues to appeal to budget-conscious customers in France, Germany and Spain, while a liquid petroleum gas-powered version of the Sandero that qualifies for generous tax breaks has become a sales hit in Italy.

The Logan range, which includes a sedan, a station wagon and the Sandero, is out-pacing the overall car market in each of its major European markets.

Dacia's performance would seem to vindicate the Renault executives who fought to bring the low-cost Logan range -- which was designed for emerging markets -- into western Europe.

With the skeptics silenced, Renault has launched sales of a Logan car-derived van and a pickup across Europe. Until now, executives resisted bringing the Logan van to Europe. They feared the move could hit sales of Renault's own car-derived van, the Kangoo.

Logan was not made for W. Europe

"Dacia was conceived for emerging markets, but then we saw that it worked in western Europe," Barral said. "By bringing the van and the pickup to Europe, we're completing the range and adding visibility to the brand."

In the first 10 months, European sales of the Logan increased 42.6 percent to 89,755 units. Dacia sold 80,000 Logans in Europe during all of 2007.

European new-car sales fell 25 percent during November, according to J.D. Power Automotive forecasting but Dacia sales continued to grow in major markets.

Dacia says it is ready for a possible fall in sales. The Logan's main production site in Romania closed from November 20 to December 7 . The company will also shut down for an as-yet undecided period later this month.

"We need to limit the inventory on hand because we know that the market is down and it's getting worse," Barral said. "Our objective is to continue resisting, but there is always a risk of getting caught in the current."

fbachman · December 11, 2008

Article Tools: Print Email Order Reprints INDUSTRY IN CRISIS

Renault's Logan resists European slowdown

Lawrence J. Speer

Automotive News Europe

December 8, 2008 06:01 CET

PARIS -- Car sales are tumbling across Europe, but Renault's low-cost Logan car is defying the market collapse.

"We are resisting the crisis," said Arnault Barral, marketing director for Renault's Dacia subsidiary, which makes the Logan range.

"There's always been a market in Europe for pragmatic customers who are looking for the combination of price, equipment and versatility seen on the Logan. The crisis appears to have accelerated this phenomenon in our favor," Barral said.

Renault is benefiting from the launch last summer of the Logan-based Sandero hatchback as well as the tough economic conditions.

The Logan continues to appeal to budget-conscious customers in France, Germany and Spain, while a liquid petroleum gas-powered version of the Sandero that qualifies for generous tax breaks has become a sales hit in Italy.

The Logan range, which includes a sedan, a station wagon and the Sandero, is out-pacing the overall car market in each of its major European markets.

Dacia's performance would seem to vindicate the Renault executives who fought to bring the low-cost Logan range -- which was designed for emerging markets -- into western Europe.

With the skeptics silenced, Renault has launched sales of a Logan car-derived van and a pickup across Europe. Until now, executives resisted bringing the Logan van to Europe. They feared the move could hit sales of Renault's own car-derived van, the Kangoo.

Logan was not made for W. Europe

"Dacia was conceived for emerging markets, but then we saw that it worked in western Europe," Barral said. "By bringing the van and the pickup to Europe, we're completing the range and adding visibility to the brand."

In the first 10 months, European sales of the Logan increased 42.6 percent to 89,755 units. Dacia sold 80,000 Logans in Europe during all of 2007.

European new-car sales fell 25 percent during November, according to J.D. Power Automotive forecasting but Dacia sales continued to grow in major markets.

Dacia says it is ready for a possible fall in sales. The Logan's main production site in Romania closed from November 20 to December 7 . The company will also shut down for an as-yet undecided period later this month.

"We need to limit the inventory on hand because we know that the market is down and it's getting worse," Barral said. "Our objective is to continue resisting, but there is always a risk of getting caught in the current."

well....OK... but it IS still French

One has to remember, the auto consumer in Europe is a FAR different bird than the American car consumer. In Europe, a car is still considered a luxury. In the US, it is a necessity (except for a very few urban areas on the left and right coast where rapid transit systems are sufficient to get most everywhere you may need to go). In most of the US, living without a vehicle is all but impossible.

The European consumer, for better or worse, or, right or wrong, is VEY environmentally consious and has a high sense of cultural responsibility.

A SMART car in Germany is considered a badge of responsible honor... HERE, many consider it a curiosity and a clown car.

Are they doing it right? Yes, for their market. Would it be right in the US... not sure. How are ultra compact sales going here? I think they are as much in the tank as everything else.