Nissan may look to Renault for affordable vehicle design

Nissan may look to Renault for affordable vehicle design - report

	Published : Fri, 12 Jan 2007 04:11 By : Agencies Print this Story

DETROIT (XFN-ASIA) - Nissan Motor Co, looking to make further inroads in fast-growing emerging markets, is considering turning to its alliance partner Renault SA for a basic vehicle design to create super-affordable vehicles, the Wall Street Journal reported.

Dominique Thormann, senior vice president in charge of administration and finance for Nissan's North American unit, was quoted as saying in the report that Nissan is 'studying' a move to develop unique Nissan vehicles for emerging economies around the world by borrowing basic vehicle technologies from the Renault Logan -- Renault's 'econocar' model that costs below 10,000 usd, the report said.

The move, he said, will allow Nissan to beef up its product offerings for mainstream customers in developing countries, according to the report.

'It's clearly the spirit of the (Nissan-Renault) alliance' to take advantage of the alliance partner Renault's product, in this case the Logan, to lower cost on entry into a new segment or market, Thormann was quoted as saying.

Thormann also said Nissan is are viewing a lot of things' in connection with the Logan, including 'making modifications to it' to come up with Logan derivatives for Nissan.

Launched in 2004 and priced at below 8,000 usd in some markets, the Logan has turned into a surprise hit for Renault. Last year, Renault sold in markets around the world 247,000 Logans under both the Dacia and Renault brand names, up 70 pct from 2005.

Inspired by Renault's success with the Logan, other global auto makers, from DaimlerChrysler AG's Chrysler Group to Toyota Motor Corp to General Motors Corp, are gearing to come up with its own Logans, Wall Street Journal said.

Chrysler last month signed an agreement with China's Chery Automobile Co to develop China-produced low-cost subcompacts for sale under a Chrysler brand name in the US and elsewhere.

The report said it is not clear what kind of manufacturing strategy Nissan will develop to produce Logan derivatives for emerging markets, and Thormann declined to elaborate.

He only said while Nissan's Logan derivatives will share common basic technologies with the Renault econocar, they will otherwise be designed in a way that sufficiently differentiates them from Renault vehicles.

'We are not a big fan of 'cross-badging,'' he said, referring to an industry jargon for selling essentially same cars under different brand names.

Still, while he sees Logan derivatives as a way to push into emerging markets, Thormann said Nissan believes those vehicles might have a future also in North America.

Nissan launched in the US a subcompact car called the Versa late last year. The vehicle, helped by consumer concern over fuel economy in the wake of high gasoline prices, has sold well, and 'we are learning very fast from the Versa that there is a good market for those kinds of vehicles,' Thormann said.

But as Chinese auto makers like Changfeng Group Co., which displayed vehicles at this year's North American International Auto Show, which opens to the public Sunday, look at offering below-10,000 usd vehicles in the US, Thormann said Nissan will consider selling Logan variants in North America as well.

'Because the Chinese are looking at that, we have a responsibility to look at that market as well,' he said.

Nissan may look to Renault for affordable vehicle design - report