French Renault to stop production for one of Romanian Dacia’s models

26 September 2014

Car maker Renault must discontinue the production of a Dacia model, either Logan MCV, Dokker or Lodgy, according to a spokesman of the group, who didn’t elaborate on this, according to Autonews Europe.

Analysts believe that this is because Dacia is moving from vans and break models to SUVs and crossovers. According to Morgan Stanley estimates, Dacia works with an operational margin of 9%, which is similar to those of luxury carmakers, but this high profitability of the brand could be affected if one of its models has poor sales.

This is why analysts estimate that Dacia will probably give up of its models that registered poor sales this year, either Lodgy or Dokker, as the Logan MCV more than doubled its sales in Europe in the first eight months of 2014.

Romanian brand Dacia remains the main growth engine for French group Renault. In the first eight months of 2014, Dacia's European sales were up 30% to 250,769 units because of strong demand for the Sandero subcompact, Logan sedan and Duster SUV. Renault sales were up 16.6% during the same period, at 817,500 units.

editor@romania-insider.com

Normal

French Renault to stop production for one of Romanian Dacia’s models

26 September 2014

Car maker Renault must discontinue the production of a Dacia model, either Logan MCV, Dokker or Lodgy, according to a spokesman of the group, who didn’t elaborate on this, according to Autonews Europe.

Analysts believe that this is because Dacia is moving from vans and break models to SUVs and crossovers. According to Morgan Stanley estimates, Dacia works with an operational margin of 9%, which is similar to those of luxury carmakers, but this high profitability of the brand could be affected if one of its models has poor sales.

This is why analysts estimate that Dacia will probably give up of its models that registered poor sales this year, either Lodgy or Dokker, as the Logan MCV more than doubled its sales in Europe in the first eight months of 2014.

Romanian brand Dacia remains the main growth engine for French group Renault. In the first eight months of 2014, Dacia's European sales were up 30% to 250,769 units because of strong demand for the Sandero subcompact, Logan sedan and Duster SUV. Renault sales were up 16.6% during the same period, at 817,500 units.

editor@romania-insider.com

Normal
 

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