Renault to make cheaper Logan

Renault intends to use its production platform to make an even cheaper version of the low-cost Logan model, Carlos Ghosn, the chief executive officer of the French company, was quoted as saying by the Financial Times. “The new generation of Logan models will be more competitive in terms of value,” said Ghosn who also stated that the French carmaker has reached its profit target set for 2006. Renault officials said sales of the Logan, most of which have been made on emergent markets, helped the company maintain its annual profit. The French group sold a total of 248,000 units of Logan last year. Renault’s CEO believes a Logan version that would cost between 2,000 and 4,000 euros (2,600 – 5,200 US dollars) is possible to produce. Still, Renault may not be able to sell the new car to all markets, on account of safety standards and other factors that are in place, which vary outside Romania. Ghosn would not comment on when Renault plans to launch the new ultra-cheap car or the brand under which it will be launched, stating that such a model is still “in the project phase”. Although the Logan is considered a “5,000-euro car”, the versions available with full-options are sold at prices that range between 7,000 and 10,000 euros. Renault sells the Logan model under its own brand name, as well as under the Dacia brand and produces the cars in Romania, Russia, Morocco and Columbia. The French group intends to begin making the Logan in India, Iran and Brazil later this year.