Mahindra and Mahindra is holding negotiations with its former JV partner Renault for reworking on the Logan platform to develop new vehicles, reports Business Standard.
M&M which recently bought out Renault’s 49% stake in Mahindra Renault Private Ltd, has now got exclusive rights for the Logan platform in India. But still, Mahindra has to pay Renault additionally to get rights to work on the Logan’s design.
The shortened boot version of the Logan could be launched soon. M&M recently announced that the company is checking the feasibility of the shortened version of the Logan (we call it Logano!).
Also the Renault badge and the Logan name would be used only till Dec 31, 2010, after that it would be badged a Mahindra and could carry a new name.
M&M also announced that it would be looking to develop the Logan platform into a utility vehicle, MPV, SUV or a crossover and has no plans to develop it into a new sedan.
It is to be noted that after Mahindra broke off with Renault, it slashed the prices of the Logan by about Rs. 80,000.
Click here for Indian Autos Blog’s exclusive rendering of the shortened Mahindra Logan.
Renault India would continue to supply engines to its erstwhile partner Mahindra & Mahindra for the Logan even after the two companies snapping up ties with each other. Mahindra had acquired exclusive rights for the Logan from Renault and would be selling the Logan without the Renault badge hereafter, but Renault would be receiving a royalty for every Logan sold.
Ashish Sinha Roy, VP (Communications & Corporate Affairs), Renault India -
We have already said earlier that we will be setting up a full-fledged powertrain unit at its facility in Chennai with Nissan. Once our engine plant goes on stream, we will locally supply the engines and transmissions for the Logan sedan. This will obviously bring down the cost of the Logan substantially and make it more competitive, as the engine and transmission unit accounts for 35-40 per cent of the total cost of the car.
Renault would be associated with the Logan till the end of 2010, implying that Mahindra wouldn’t re-design/re-engineer until the beginning of 2011 (thank god!). Beginning 2011, Mahindra engineers would begin partying with the Logan platform in their hands.
The Logan could face a slew of changes, possibly a new body-style (probably a sub-4 meter Logan), interiors and engines. Considering Mahindra’s reputation of developing not-so-good-looking cars recently (the Xylo is a case in point) and proudly developing uglier looking cars out of them (the future 5 seater mini-Xylo), what would become of the Logan in the future is a bit scary for us.
The only good news, though, is that Logan would be serviced at Mahindra dealers across the country.
In the market place, the Logan’s sales went up by a meager 5% last month compared to the same month last year, thanks to heavy price-cuts of up to Rs. 80,000.
We believe the agreement will be building a smaller Logan shown above at Nashik
French automaker Renault is close to an agreement with Indian utility vehicle maker Mahindra to refurbish the rapidly vanishing Logan in India.
Ashish Sinharoy, a Mumbai-based spokesman for Renault -
We’ve reached agreement on almost every critical element of the negotiation. The conclusion of the talks will be announced by mid-April.
What Mr.Sinharoy is referring to when saying “agreement” could be manufacturing a re-bodied Logan at the Nashik facility of Mahindra. The car was spied yesterday in India, built using almost the same components with a compressed boot.
The Renault Logan is over 4 meters in length and shortening it by 25cm will qualify it for a lower excise duty slab resulting in a cheaper price tag for the end user. Sinharoy agrees Renault is skeptical of re-engineering the car for a single country.
Mahindra Renault’ Logan competes with the likes of the Swift Dzire, Tata Indigo, Ford Ikon, etc. Despite being in a high demand segment, it recorded a loss of $108 million last year with sales down by almost 48 percent compared to the same time last year.
The Renault Logan, with its impressive space, comfort and frugal engine, has been a serious contender to the Indigo, Ikon, Accent and Dzire since its launch earlier last year. To make it better, Mahindra has increased the specs on the current Logan range, which makes it even more desirable. The top end GLSx and DLSx variants boast of anti-lock braking system (ABS) with electronic brake force distribution (EBD) which are [ Read More ]
