Renault Logan victim of success and blunder

27th September 2004, Comments 0 comments

BUCHAREST, Sept 27 (AFP) - French auto maker Renault is in talks with the Romanian government to purchase an abandoned automobile production site in Romania owned by Daewoo of South Korea to boost production of its Logan model, French Industry Minister Patrick Devedjian said Monday.

BUCHAREST, Sept 27 (AFP) - French auto maker Renault is in talks with the Romanian government to purchase an abandoned automobile production site in Romania owned by Daewoo of South Korea to boost production of its Logan model, French Industry Minister Patrick Devedjian said Monday.  

However, Renault in Paris denied this.  

Devedjian said here at the start of construction of a new wastewater treatment site by French group Veolia Environnement: "The Logan has been wildly successful in Romania. Renault fears that it does not produce enough of this car,"   

"Renault is in talks with the Romanian government to evaluate the purchase of a factory that belongs to Daewoo and which has been abandoned," he said.  

However, in Paris a Renault spokesman said there were currently no talks under way with Romanian officials and that demand growth for the Logan was "very normal".  

But he did say: "Depending on growth in demand for the Logan, Renault will have to study options for increasing production capacity."  

Since the launch of the Logan low-cost car in early September in Romania, Dacia has sold about 3,000 units and 14,000 people have signed onto a waiting list to buy the budget car.  

The Logan, to sell for about EUR 5,000 (USD 6,127), was developed by Dacia and its French parent Renault for emerging markets and built following a renovation of the Romanian car maker's creaking plant near Pitesti, northwest of Bucharest.

© AFP

 

Subject: French News

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