Logan and Nano

Economist.com Page 1 of 4 Pile them high Nov 13th 2008 From The Economist soft touch edition The cheap-and-cheerful end of the market WHEN in 1999 Renault spent $50m to acquire a controlling stake in Dacia, a sickly Rumanian carmaker formerly owned by the state, it was unimaginable that it would execute one of the jewels in the French car firms crown. This year, at its factory in Pitesti, non far from Bucharest, Dacia leave churn out more than 300,000 Renault-Dacia Logan saloons and its cousins. In 2009 the number is anticipate to rise to 400,000, including kits exported to other Renault assembly plants. Five months ago the millionth Logan since its launch in 2004 rolled off the line. The chances are that it was a car from Pitesti, the Logans mother plant, but it could be possessed of come from any one of seven other fruit sites in Russia, India, Iran (with two), Morocco, Brazil or Colombia. Conceived as a cheap car for emerging markets, the boxy-looking Logan has bring to pass one of Renaults most profitable vehicles. Whereas Renaults margins across its range are an anaemic 3%, the Logan earns at least twice as much. By 2010 Renault expects to be making more than a million Logans a year, despite its failure to find a partner in China to build them.

No wonder most world(a) manufacturers are jostling to get into the lowcost game. alone what exactly is a low-cost car? Mark Bursa, the emerging-markets commentator of Just-auto, a carindustry website, argues that the enclosure can include anything from Fiats rather upmarket Linea saloon and the Logan to legacy cheapies such as the ancient Lada Zighuli and the Maruti 800, a five-year-old VW Golf or Tatas innovative one-lakh car, the Nano. But used cars imported by poor countries from rich ones become expensive when weighed down with high duties and taxes to protect indigenous industries. And Mr Bursa acknowledges that cars such as the Lada and the Maruti, both based on 40-year-old designs, will not be rolling off the... If you want to get a full essay, order it on our website: Orderessay

If you want to get a full essay, wisit our page: write my essay .