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Dacia-Lada business unit will unleash brands’ power, Renault execs say

Dacia-Lada business unit will unleash brands' power, Renault execs say

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“Dacia and Lada will remain separate companies with their own brand history and strategy,” Le Vot said. “But they will benefit from more dedicated, focused and coordinated governance.”

He said that labor costs – for Lada in Russia and Dacia in Romania and Morocco – were less than 25 percent of those in western Europe, helping to give a “double digit” cost advantage against competitors.Dacia sold 520,765 vehicles in 2019, a 29 percent drop. It says the small Duster and Sandero were the best-selling vehicles in the retail segments in Europe. Dacia generally does not sell cars through lower-margin channels such as rentals.

Lada’s sales last year were 345,512, a 7 percent drop, giving the brand built by Avtovaz a 21.6 percent share of the Russian market, a one percentage point increase over 2019. It has the two best selling vehicles in Russia, with the Granta and Vesta.

But Dacia’s reach goes further than selling cars with its own badge. The Romanian brand leads the development of Renault’s low-cost Global Access range, which sells Dacia models labeled as Renault, Lada and even Nissan. For example, the Dacia Logan MCV is sold in Russia as the Lada Largus Universal; the Dacia Duster is sold as the Nissan Duster in Russia and the Renault Duster in India. 

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