Mahindra to restructure the Logan platform

Mahindra & Mahindra, the top utility vehicle(UV) maker of India is speculated to enter in a dialogue with its former joint venture partner Renault, in a bid to restructure the platform which was used for manufacturing of the Logan sedan. Mahindra group has indicated that it is looking forward to use this reformed platform in operations other than production of passenger cars.

Both these companies parted ways in April 2010, after Renault sold its stake in JV to Mahindra Group, due to various issues on prising and designing of Logan. Where the Mahindras were keen on reducing the size of the sedan in order fulfill the criteria of the small car segment, Renault wanted to keep the original size of the car.

To develop a new Logan platform, the company will have to negotiate further with Renault, as there would be more financial constraints involved. The company, first needs to get a go-ahead from Renault before it makes any changes to the car, as per the statement given by a senior company official to a leading news daily. On the other hand, Renault India said, that the company will lend its brand name only till the end of this year, as from January 1, 2011 it would be M&M’s responsibility to rebrand the car. Renault has signed a technical license agreement and has not sold the platform to M&M, which restricts Mahindra to make any free changes.