{"id":65624,"date":"2025-06-18T04:18:07","date_gmt":"2025-06-18T08:18:07","guid":{"rendered":"https:\/\/www.globalvillagespace.com\/tech\/dacias-game-changing-strategy-how-to-build-affordable-cars-without-compromise\/"},"modified":"2025-06-18T04:18:07","modified_gmt":"2025-06-18T08:18:07","slug":"dacias-game-changing-strategy-how-to-build-affordable-cars-without-compromise","status":"publish","type":"post","link":"https:\/\/www.globalvillagespace.com\/tech\/dacias-game-changing-strategy-how-to-build-affordable-cars-without-compromise\/","title":{"rendered":"Dacia’s Game-Changing Strategy: How to Build Affordable Cars Without Compromise"},"content":{"rendered":"

Dacia has carved out a unique niche in the automotive world, and much of that can be attributed to its unconventional approach to car design and production. At the helm of this innovative brand is Denis Le Vot, a seasoned executive whose background in engineering and extensive experience across various markets have shaped Dacia into a formidable player in the budget car segment. <\/p>\n

How Does Dacia Keep Prices So Low?<\/p>\n

You might wonder how Dacia manages to offer vehicles at such competitive prices while still delivering value. The answer lies in a three-pronged strategy that Le Vot has meticulously crafted. First and foremost is modularity. This isn\u2019t just a buzzword; it\u2019s a fundamental principle that allows Dacia to streamline its production process. Most of Dacia\u2019s models share components up to the B-pillar, which means that the company can save time and money by reusing parts across different models. <\/p>\n

For instance, transforming the Renault Clio into the Dacia Sandero took a significant investment of time and resources\u2014two years and 3,000 engineers. However, once that groundwork was laid, adapting the Sandero into other models like the Jogger was a breeze, costing just \u00a35. This kind of efficiency is crucial for a brand that prides itself on affordability.<\/p>\n

What About Customer Preferences?<\/p>\n

Understanding customer preferences is the second pillar of Dacia\u2019s strategy. Le Vot emphasizes the importance of knowing what the target audience truly wants. For example, in the competitive C-SUV market, Dacia has learned that features like air conditioning are non-negotiable for German consumers. However, extras like electric seats are not essential. By focusing on what truly matters to buyers and avoiding unnecessary add-ons, Dacia can keep costs down while still meeting customer expectations.<\/p>\n

This approach is not just about cutting corners; it\u2019s about smart design. The Bigster, Dacia\u2019s latest SUV, is a prime example. It\u2019s designed as a five-seater because Dacia determined that only 25% of potential buyers in that segment would opt for a seven-seat configuration. By avoiding the added weight and complexity of a seven-seater, Dacia can maintain a leaner production process and keep prices low.<\/p>\n

How Does Dacia Negotiate with Suppliers?<\/p>\n

The final piece of Dacia\u2019s puzzle is its negotiation strategy with suppliers. Le Vot\u2019s experience in various markets, including the tough landscape of Russia, has equipped him with a no-nonsense approach to supplier negotiations. Rather than designing a car and then haggling over parts, Dacia starts with a target price for the vehicle\u2014say, \u20ac25,000\u2014and works backward from there. This means that every component must fit within a predetermined budget, ensuring that costs don\u2019t spiral out of control.<\/p>\n

For example, when it came to the Bigster\u2019s electric tailgate, Dacia\u2019s suppliers were challenged to create a solution that met both the necessary functionality and the cost constraints. The result? A clever design that uses one electric strut and one hydraulic strut, delivering the required performance without breaking the bank.<\/p>\n

What\u2019s the Takeaway?<\/p>\n

Dacia\u2019s success isn\u2019t just about making cheap cars; it\u2019s about making smart choices that resonate with consumers. By focusing on modularity, understanding customer needs, and negotiating effectively with suppliers, Dacia has managed to create vehicles that are not only affordable but also appealing. <\/p>\n

The big takeaway? Dacia isn\u2019t about perfection\u2014it\u2019s about smarter adjustments. If you\u2019re in the market for a new vehicle, consider what features are truly essential for your needs. Start with one change this week, and you\u2019ll likely spot the difference by month\u2019s end.<\/p>\n","protected":false},"excerpt":{"rendered":"

\"Denis<\/a><\/p>\n

Dacia’s exuberant CEO imposes an unorthodox way of working on Dacia\u2019s designers and engineers<\/p>\n

\n

You wouldn\u2019t think an electrically powered tailgate could be the topic of engrossing chatter, because 99.9% of the time it can\u2019t.<\/p>\n

But then you find yourself in a room with Denis Le Vot, and suddenly it\u2019s as if Walter R\u00f6hrl is explaining\u00a0that the next Porsche 911<\/a> is going to get a V12.<\/p>\n

Le Vot, an engineer by training, is the CEO of Dacia<\/a>. He\u2019s one of those fascinating, shrewd execs who\u2019s been around the corporate block.<\/p>\n

Turkey, Russia, Belgium, the US, mostly within the Renault-Nissan<\/a> universe, and with a stint as a board member at AvtoVAZ, the Soviet state-owned car maker that went private in the 1990s and was then bought by Renault<\/a> before being returned to the Russian state in 2022.<\/p>\n

He has lived a life of unglamorous car-industry realpolitik, making profit where it isn\u2019t easily found. It isn\u2019t hard to see why Renault Group CEO Luca de Meo thought him a superb fit for Dacia \u2013 a brand that squeezes margin from cars until the piston rings squeak.<\/p>\n

Le Vot loves this stuff, as I discovered on the recent Bigster<\/a> launch in Provence, where we talked not about how Dacia\u2019s new SUV<\/a> rides or handles (well enough) but how the hell the company can charge so little for it.<\/p>\n

The range starts at \u00a325k, and when you consider the kit on offer, it\u2019s the same as Aston Martin<\/a> offering its new Vantage<\/a> for BMW M4<\/a> money. It\u2019s tough to see how some of the Bigster\u2019s rivals will survive, especially as it\u2019s reasonably easy on the eye as well as the wallet. A bloodbath seemingly awaits.<\/p>\n

Dacia\u2019s approach is triple-pronged, beginning with modularity. Okay, no surprise there (it\u2019s the only way that any car maker short of Ferrari<\/a> et al can do business today), but the Romanian brand takes it a step further than most.<\/p>\n

Save for the tiny Spring EV<\/a>, all of its cars are identical up to the B-pillar. Le Vot jokes that while it took two years and 3000 engineers to turn Renault\u2019s Clio<\/a> into\u00a0the Sandero, it then cost \u00a35 to turn the Sandero<\/a> into the Jogger<\/a>.<\/p>\n

Adapting it for Duster<\/a> duties\u00a0cost a little more, mainly for the reinforced\u00a0sills and ride height, but from there, for the extra-large Bigster, the only major change\u00a0has been to extend the A-pillars by 50mm.<\/p>\n

Every kilogram is managed, too. The reason the Bigster doesn\u2019t offer a seven-seat interior is because Dacia worked out only 25% of buyers in the segment consider them but the added weight would require strengthening for the rear axle, which would add expense across the range.\u00a0Ergo the Bigster is a five-seater only, being ruthlessly focused on the main audience.<\/p>\n

Which brings Le Vot to his second point: the importance of learning what the intended buyer really wants and then not straying beyond that kit level by so much as an additional USB-C port.<\/p>\n

\u201cWe\u2019ve been studying the Germans, I must confess,\u201d he says, smirking. The Germans are the big market for cars like the Bigster. They\u2019re also fussy, which is crucial. If our German chums \u2018need\u2019 something in their C-SUV, you damn well better offer it. And if they don\u2019t, nobody else will want it and you\u2019re off the procurement hook.<\/p>\n

\u201cIf the car doesn\u2019t have AC [air-con], then it\u2019s disqualified. But if I offer, whatever, electric seats for the front passenger or AC in the seats? No need: it\u2019s not disqualifying. So we have dual-zone AC [in the Bigster], which we\u2019ve never had before, and we have two-tone paint and an electric tailgate. These are the things we will offer, and if we don\u2019t, they will say \u2018I\u2019m not buying\u2019. Hundreds of people. It\u2019s complicated; new territory for us.\u201d<\/p>\n

The final part of the equation is the supplier negotiations, where Le Vot\u2019s sojourns in hard-nosed Russia has fortified his resolve. By all accounts, this charismatic Frenchman and his accomplices in accounts are utter bastards.<\/p>\n

Le Vot says: \u201cWe define the car [at] \u20ac25k and the hybrid<\/a> [at] \u20ac30k, then we split this price. It seems obvious, but most manufacturers don\u2019t do that.<\/p>\n

“They design the car they want to have, then give the parts to suppliers, negotiating like hell to get the best price, but the best price is a surprise. When you expect \u20ac100, you get \u20ac110 more often than \u20ac95.<\/p>\n

“You put it all together and it\u2019s 10% more than you thought. We design to cost. So we say \u20ac25k, cut [the car] into pieces [then say] this part has to be \u20ac45, and if you can\u2019t make it at \u20ac45, we don\u2019t make the part. It takes a little time, of course, but they come back and propose a solution.\u201d<\/p>\n

An electric tailgate, then. In short, Germans insisted the Bigster needed one, so Dacia\u2019s suppliers, donning their thumbscrews, invented one at the required cost.<\/p>\n

One strut is electric, the other is hydraulic. It\u2019s cheap but it works and is strictly necessary. Inimitable Dacia in a nutshell.<\/p>\n<\/div>\n","protected":false},"author":1,"featured_media":65625,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"Default","format":"standard","meta":{"footnotes":""},"categories":[2,291],"tags":[],"class_list":["post-65624","post","type-post","status-publish","format-standard","has-post-thumbnail","category-featured","category-opinion"],"_links":{"self":[{"href":"https:\/\/www.globalvillagespace.com\/tech\/wp-json\/wp\/v2\/posts\/65624","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.globalvillagespace.com\/tech\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.globalvillagespace.com\/tech\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.globalvillagespace.com\/tech\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.globalvillagespace.com\/tech\/wp-json\/wp\/v2\/comments?post=65624"}],"version-history":[{"count":0,"href":"https:\/\/www.globalvillagespace.com\/tech\/wp-json\/wp\/v2\/posts\/65624\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.globalvillagespace.com\/tech\/wp-json\/wp\/v2\/media\/65625"}],"wp:attachment":[{"href":"https:\/\/www.globalvillagespace.com\/tech\/wp-json\/wp\/v2\/media?parent=65624"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.globalvillagespace.com\/tech\/wp-json\/wp\/v2\/categories?post=65624"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.globalvillagespace.com\/tech\/wp-json\/wp\/v2\/tags?post=65624"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}