Business Week – April 23, 2007:
How cheap is cheap? Renault-Nissan Chief Executive Carlos Ghosn is betting that for autos, the magic number is under $3,000. At a plant-opening ceremony in India Apr. 4, he was already talking up the industry’s next challenge: a future model that would sport a sticker price as low as $2,500—about 40% less than the least expensive subcompact currently on the market. Renault-Nissan is the first global automaker to take up the gauntlet thrown down in 2003 by India’s Tata Motors, which plans to launch a $2,500 car next year. Both are leading a race to the bottom that could affect the business every bit as much as Henry Ford’s Model T did a century ago.
When Tata made its vow to build a $2,500 car, many Western auto executives ridiculed the project, dubbing it a four-wheel bicycle. They aren’t laughing anymore. Tata’s model is a real car with four doors, a 33-horsepower engine, and a top speed of around 80 mph. The automaker claims it will even pass a crash test. And while the car probably won’t win any beauty contests, it’s no ugly duckling either, according to the handful of industry insiders who have been given a glimpse.
Where are you guys getting this fact that Toyota and Honda have the same unions? They open in the South because they have weaker unions there. Plus these companies weren’t employing millions of union members 20 years ago with pension and health care obligations that they have to pay now.
Besides all the high paid execs and safety features, I understand these $3,000.00 cars to be just the basics and not loaded with computers for traction control, dual climate control, power seats, windows etc.
well a good cheap car is always needed who cares about stupid union pros and cons this is about making a car for every pocket if you want options then you can afford to buy better but more cost doesnt always mean a better vehicle how many people go out and actually buy a basic model car not many but those that do will feel good about themselves and that can lead to more impulse buying in other areas why should a car be the 2nd most expensive thing you ever buy
come on the cheap n cheerful TATA
looking for new nissan $2500
When is it going to be able