September 24, 2004

Dawn of the Logan

fpi_glasses.jpg Saw my first Logan this week.

Romanian readers will instantly say, "Ah! A Logan." Everyone else will be saying "Do what?" So, skip the next few paragraphs, Romanian friends, while I explain.

Back in the bad old days of Communism, Romania had its own car brand: the Dacia. (Well, actually it had two car brands, but the Oltcit probably deserves a post of its own.) Dacias were boxy little sedans made at the Dacia factory in Pitesti, about 100 km west of Bucharest. They were originally made by Renault under a licensing agreement, and right up to the end they had a vaguely little-French-car-from-the-1960s look.

Originally, I am told, the Dacia was a decent car. Small, simple, and completely lacking in frills or luxury, but not bad. But like a lot of things in Ceausescu's Romania, it tended to get worse with time. Renault's license expired in 1978, and the state took over the factory. Lack of foreign currency meant that more and more of the parts were made in Romania. The quality of the car gradually dropped, until by the end of the regime it was iffy even by the low standards of Communist Eastern Europe.

(But Romanians seemed to keep a certain affection for it anyway. Or so I'm told. They were bad cars, but any car at all was a luxury in those days; you had to wait three to four years for delivery, and that was after you'd already paid for it. And since all Dacia models were essentially the same car, made in the same factory, they tended to be bad in the same ways. So you knew where you stood, and everyone was in the same boat.)

After 1989, of course, things changed. Romanians discovered second-hand European cars. The Dacia factory in Pitesti went through the same economic convulsions as all the other big state-owned enterprises. And eventually, in 1999, it was privatized -- ironically enough, to Renault.

Now, Renault had big plans for the Dacia factory. They didn't just want to make Dacias. They wanted to launch a massive assault on the Eastern European car market, building and marketing a cheap but reliable car that would be attractive, not just to Romanians, but to Bulgarians, Poles, Turks, Serbs, Ukrainians, you name it. They wanted to make "a western car at an eastern price", and sell it to a market of hundreds of millions of potential customers.

Still with me? Okay, so: the Logan is that car. It's built in that same old factory in Pitesti. But it's a whole new car, and much of it consists of Renault components manufactured elsewhere, shipped to Pitesti, and assembled. And the quality, it's already clear, is far beyond that of the little old Dacias.

If the preliminary reports are correct, then Renault may have done something. According to the first set of reviews, the Logan seems to be a decent car -- small-ish, somewhat underpowered, bland in appearance, but cheap, cheap, cheap. A new one runs about 5,700 Euros ($7,000); add all possible frills, and it only goes up to about 8,600 Euros ($10,500). That's a car that an average Romanian -- or Ukrainian or Bulgarian or Turkish -- family could imagine owning.

Of course, it'll be a while before we know for sure. The big questions -- is the Logan safe? Sturdy? Reliable? How will it handle Romanian driving conditions? -- won't be answered for months or years. The Logan looks good at first glance, but it might yet turn out to be a lemon. And in the meantime, Renault has invested five years and over 600 million dollars in retooling the Pitesti factory. So it's not yet clear whether this gamble will pay off.

But anyway, Logans are starting to appear on the streets of Bucharest.

More on this in a bit.

Posted by douglas at September 24, 2004 02:01 PM
Comments

We've talked about this a bit, but to my eye it looks like Renault wants to follow Citroen's old Deux Chevaux / 2CV strategy, with a inexpensive solid workhorse car good for both city and country use. (In terms of the rural to urban split, Romania is right where France was when the 2CV was introduced, and there ain't nothing wrong with that.)

C.

Posted by: Carlos at September 24, 2004 06:08 PM

How easy is the Logan to work on or modify? One of the virtues of the old VW "Bug" (like the old Ford Model-A before that) was that even a semi-handy novice could drop the engine to rebuild it or soup it up; or could saw up the body to turn it into a convertible, a pick up truck, a limo ...

Posted by: Pouncer at September 24, 2004 07:10 PM

What a coincidence. I haven't seen one yet, but wrote about it today, too.

Renault has changed its plans and is going to introduce the Logan to Western Europe in the middle of 2005 starting at 7.500 Euro. I am definitely going to check it out.

@Pouncer: I have read somewhere that the Logan is supposed to be easily repaired.

Posted by: novala at September 24, 2004 08:30 PM

Actually, there was another car made in Romania, in Timisoara: Lăstun "Dacia 500", considered the worst car ever made in Romania.

http://www.carsurvey.org/review_28728.html

An image of it. Look at the child in the image for size comparison: Yes, it's that small. :-)

Posted by: Bogdan at September 24, 2004 09:46 PM

It's as much a matter of building up a cheap manufacturing base as anything else, I think. The day isn't that far off when they'll be shipping a similar vehicle back to France.

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Johnson Controls to invest $26 million in Slovakia

Reuters / September 20, 2004



BRATISLAVA -- U.S. supplier Johnson Controls said on Monday it planned to invest up to 850 million crowns ($26 million) to build a new technical center in Slovakia in the next few years.

The fourth largest U.S. auto parts producer, which is also considering Slovakia for a 25 million euro ($30 million) seat components factory, aims to start construction of the center in the western Slovakia town of Trencin in October.

"With this step, Johnson Controls is responding to the growing presence of its customers in the middle of Europe," Project Manager Dieter Vandreike told a news conference.

He said the new facility, which should serve the firm's global development network, is expected to expand gradually in the coming years if the automotive industry continues to grow.

Economy Minister Pavol Rusko said the new investment should create up to 600 jobs. He added that two Slovak locations were still in play for Johnson Controls' new seat parts plant. Vandreike said the seat parts project was at the stage of investigation and that there were still several options open. He declined to elaborate.

Slovak government investment agency SARIO said earlier this month that the project would generate nearly 340 jobs and the U.S. firm was aiming to supply PSA Peugeot Citroen and South Kia Motors plants, which should start production in 2006.

Slovakia has attracted increasing numbers of foreign firms in the recent years due to its proximity to western and eastern European markets, business-friendly reforms and cheap labor force.

Johnson Controls already operates a seat assembly plant in Slovakia to supply Germany's Volkswagen factory near Bratislava.

Johnson Controls is seventh in the Automotive News ranking of top global suppliers with $15.2 billion in sales to automakers in 2003.

Posted by: Bernard Guerrero at September 24, 2004 09:52 PM

For what it's worth, I think that the new Dacia's are pretty nice looking cars. I kind of even liked the new grill and logo design.

I presumed that the new Dacia's were still being built at the Pitesti plant, but if that facility has been now turned over to the Logan, maybe not.

Still, I retain an affection for the Dacia that has not transfered over to the new model.

Best Wishes,

Traveller

Posted by: Traveller at September 25, 2004 07:24 AM


Ooops!

Proof read, proof read, proof read.

That should of been:

"Still, I retain an affection for the Dacia that has now transfered over to the new model."

Sigh

Best Wishes,

Traveller

Posted by: Traveller at September 25, 2004 07:41 AM

According to some of the most knowledgeable sources in Bucharest (taxi drivers) the car is nice, big and safe, with the only downside of consuming more than 10%. Personally I agree with FT calling it a Frankestein car. :)

Posted by: Dragos at September 27, 2004 07:34 PM