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April 18, 2005

RUSSIA: The €5,000 car: a slogan, not a Logan

Renault has enjoyed years of press referring to the Logan as the "€5,000 car." But even the man who came up with the idea for the Logan admits its unlikely the inexpensive family car will sell for such a low price in any market.

Renault has enjoyed years of press referring to the Logan as the “€5,000 car.” But even the man who came up with the idea for the Logan admits its unlikely the inexpensive family car will sell for such a low price in any market.

“Will the Logan entry-level version sell for €5,000? I am not sure,” said Renault chairman Louis Schweitzer during the inauguration of Renault ‘s Avtoframos plant in Russia.

The original €5,000 price tag referred to a planned Logan entry-level version in Romania, the car’s birthplace. Renault subsidiary Dacia will introduce a basic Logan in June – but not for €5,000.

Schweitzer said because of inflation and currency appreciation in Romania since he set his ambitious target, the basic Logan, code-named B0, will be priced at “5,000 plus a few hundred euros.”

Since the car was launched in Romania last September, Dacia has sold 45,000 units, but all have high levels of equipment and cost €7,000 or more.

And there will be no €5,000 Logan here in Russia. Renault will price the Logan at $US8,000 to $12,000 (€6,150 and €9,230), above local Russian brands but below imports.

Renault expects this intermediate segment to grow the fastest and represent half of total Russian new-car and light-utility-vehicle sales by 2010 from 20% now.

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