If a manufacturer is setting out to make a good car for pretty cheap it can be done pretty easily with very little traded away. It's probably just around 100hp, no automatic models, and has little sound proofing, but that shit doesn't matter for a commuter car really. Save a ton on R&D by using technology you've already implemented into your cars and haven't had any problem with for the last 4 or 5 years, and use a lot of standard parts. It's basically how Toyota got a foothold in the global market and look how they're doing now.
The problem is that American car companies try to compete with cars like the Neon, and the design philosophy behind it is not what people are looking for (trade reliability for aesthetic value and a little extra power). That just kills their company reputation.
Anyways, the Logan is viewed as a huge success in Europe, with demand far higher than supply, so this is probably a pretty good area for Toyota to get into.
