Autoblog

Relentless deal maker Carlos Ghosn has never stopped looking for any partnership that would give Renault a plum position in a profitable market. Already close to a Nissan deal with Chrysler working on Renault and Nissan deals in the Middle East, his latest paramour is in Russia. Ghosn has secured himself and four Renault managers seats on the board of AvtoVaz -- the company which, as you're all aware, is more popularly known for the name of its signature vehicle: the Lada.

Ghosn's idea is that Russia will be the hottest thing going in two years, so he needs to book his place now. Renault will take a 25-percent stake in AvtoVaz, and the board members from Renault will be focused on technology and cost-cutting issues. AvtoVaz will still be led by its Russian majority shareholders -- one of which is the State -- but will benefit from the expertise of one of the most efficient men in the business. To boot, they are also in talks with Renault about assembling Logans and Meganes. Who knows -- if Russia really does become that important and AvtoVaz proves itself with the hatchbacks, perhaps it'll get a shot at a Lada GT-R?

[Source: Automotive News - Sub. Req.]

Click on the pic above for more images

Want a cheap racing car? Using one of the cheapest cars on the market would be a good place to start. That's the idea behind the Dacia Logan Cup, a series of racing mods available for the budget automobile.

The Logan Cup clearly draws on the expertise from its parent company's in-house motorsports and tuning shop Renaultsport, applying the same formula used on hot versions of the Clio and Megane, but to a much smaller scale. The Dacia Cup is available in three different versions for track, road rally and off-road rally racing. The running gear remains stock to keep the ease and cost of acquisition and servicing down to a bare minimum. Depending on the version, the Logan Cup is then fitted with all manner of racing-spec equipment from roll cage to Bilstein shocks and from rear wing to racing harness.

The packages will be available from Renault and Dacia dealerships wherever Logans are sold – that counts out the American market, for one – and can be used in a variety of low-level racing series, and the manufacturer is organizing regional one-make racing series around the world. The idea is so simple, it just might work.

Check out logan-cup.com for more info and gallery below for more small pics of the small racing car.

Reporting on one luxury car hitting the market after another and a seemingly endless race for the latest in technological breakthroughs, it seems hard to believe, but the fiercest competition in the automotive industry is emerging in the ultra-low cost segment. As markets like India and China continue to develop, their billions of citizens are moving up from bicycles and scooters to low-cost cars, and the sticker prices keep getting lower and lower.

Four years ago, India-based Tata Motors vowed to make a car which will sell for $2500. It seemed like a joke at the time, but that car is almost ready to hit the market, and the competitors are getting ready to put up a fight. With its bare-bones Logan sedan, Renault has the leg up on other automakers including Toyota, Volkswagen, Fiat, PSA and GM Daewoo, which are all preparing to get in on the low-cost market.

Carmakers are keeping costs down by developing the cars in India, and though the profit margins are dramatically lower than in premium segments, the companies are clamoring to establish their footholds in the emerging markets and hope that the volume will make it all worthwhile.

While the ultra-affordable subcompacts are being designed with developing countries in mind, automakers are surprised to find their no-frills offerings are being received well even in Europe, where customers see the savings as a worthwhile alternative to spending thousands more on higher-priced cars. Standard safety features and emissions control mean that a car that would cost $3000 in India costs $6-7000 in a Western country, but even at those prices the cheap imports undercut anything else on the market by thousands. It's being hailed as an impending revolution in the automotive industry every bit as pivotal as was the Ford Model T.

[Source: Business Week]

Pushing aside mounting political pressures, Renault has announced that it will go ahead with plans to build its Logan sedan in Iran as part of a joint venture.

Signed yesterday, the deal had been in doubt for some time-and not because of the nation's controversial nuclear initiative. As Autoblog reported last month, the future of the French connection was questionable after government officials balked over vehicle export percentages, shutting down production of the bare-bones vehicle.

Renault's original plans called for 250,000 Logans to be produced in Iran beginning in 2008, but that target may be under review.

[Sources: The Peninsula; Renault]