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Renault considers 'third world car'

From Reuters| June 19,2007

Paris, France - Renault has confirmed it's considering a super low-cost car for emerging markets but would not comment on the details of a report which said it aimed to create a $3000 (R21 000) vehicle in India.

Le Figaro newspaper said Renault planned to hire 1000 engineers to design a "third world" car within three years that would not be sold in Europe.

Without giving details, Renault spokeswoman Axelle de Ladonchamps said: "We are indeed thinking about a car for emerging markets priced more competitively than the Logan."

Renault has been selling a locally-assembled Logans in India since May 2007 in a joint venture with local automaker Mahindra & Mahindra, priced from 428 000 rupees (R69 000) to 547 000 rupees (R88 000).

De Ladonchamps said the base model Logan sold for €7600 (R54 000) in Europe.

Renault is building a second plant in India that will start building out cars in mid-2009. It does not have a design centre in India.

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