Dacia brand has become "cash cow" for parent Renault
Its rampaging sales and the synergies between the Renault and Dacia lines have turned the brand into a "cash cow" in the words of Renault's COO. Its vehicles share a huge number of parts, many of which are still carryover nine years into the brand's life, and parts of the recently introduced second-generation Logan are evolved from the 1990 Renault Clio. In fact, due to amortization and decreased prices for parts because of the massive sales, the new Logan is less expensive to produce than the first generation, so it was given new equipment along with the refresh in order to maintain its price.
The news is even better in other regions, where the Dacia can command more money on its own or can be sold under the Renault or Nissan brands. The Duster in Western Europe that starts at 12,000 euros starts at 19,000 euros in Brazil. That's how Dacia, according to a Morgan Stanley analyst, returns a worldwide nine-percent operating margin as opposed to Renault's 0.4-percent. What lies ahead is more models and variants, as well as a modular strategy for the M0 platform to further reduce costs, and, one supposes, even more money from that Romanian cow.
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