Got 5,000 Euros? Need A New Car?
By Gail Edmondson in Pitesti, Romania, with Constance Faivre d'Arcier in Paris Fri Jun 24,11:49 AM ET
A strange thing happened when French auto maker Renault last fall rolled out the no-frills Logan, a midsize sedan was designed to sell for as little as 5,000 euros ($6,000) in emerging markets like Poland. Western buyers clamored for the car. So this June, Renault began delivering the roomy, unpretentious five-seater to France, Germany, and Spain. The pricier West European version includes a passenger-side airbag and a three-year warranty but still sells for a base price of $9,300 -- about half that of the Ford Focus ($17,250) and the Volkswagen Golf ($18,264).
Building cheap cars for the West wasn't what Chairman Louis Schweitzer had in mind when he spent $592 million in 1999 to acquire and retool ailing Romanian auto maker Dacia. He aimed to produce a low-cost vehicle targeted at developing countries, home to 80% of consumers who have never owned a car. But he may well have stumbled onto a rich vein of demand in the West for utilitarian cars, part of the discount mania that has spread across Europe. Renault's tony Champs Elysees dealership has sold 40 Logans since the car's June 9 debut. The waiting list stretches into November. "For me a car is only a means of transportation. The Logan is a genius idea," says Michel Cuypers, a 62-year-old retiree who ordered a pearl-grey Logan with a radio, power steering, and metallic paint -- all extras -- for $10,648.
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