GM to take on Tata Nano?
January 29, 2008 by Alborz Fallah
With sales slowing back home, General Motors is looking at booming markets to increase market share. One market which is expected to rival the west in the next few decades is India.
GM currently holds a minority share in Chinese owned SAIC-GM-Wuling Automobile Co. which may increase as the old General looks to compete with the Tata Nano from India.
According to Bob Lutz, GM’s vice chairman of global product development, GM is working on a “parallel” products program which will run independent of GM’s current global vehicle lineup. This will allow the company to better compete in the Indian super low-cost segment as well as other developing countries.
With the Nano set to retail for around $2,500 USD (~$2,900), GM’s potential ultra-budget car will need to be priced very competitively to survive. The company currently co-builds the Wuling vans and pickups in China which retail for roughly $3,000 USD (~$3,400), so a passenger car for $2,500 is not out of the question.
Lutz said the Nano could potentially overshoot its $2,500 starting price once amenities are added. “You add an extra passenger seat, that’ll be slightly extra and so forth,” he says. “The average retail is probably going to be more.”
Discussing plans to bring the ultra low budget to the States and other developed countries, Lutz said “it could not be sold in the developed world because it wouldn’t meet regulations.”
He also added that American buyers looking for cars starting at $2,500 will be more likely to purchase a used car than a new ultra-budget micro car.
Print it: 
*****PRIMO!*****
Hope GM do, because Ford and Chy. being sheep will follow, then the Japs and soon every other brand will follow.
Its not enoug, i want to see a
*****SECONDO!*****
Woops, a bit got cut off?
What i wanted to finish and say, was $2500 is now to HIGH, yes, i want more equipment, a bigger and better vehicle with more power etc, FOR LESS THAN US$2000….
US$1999 driveaway, with no more to pay! :-)
Y E S !!
Cheers
F-0
Pretty sad when the only way GM can retain it’s no’1 position is go around buying out other automotive companies.
I will say one thing about them – they are certainly not discrimitive with Daewoo and possibly Tata under thier belt.
GM has become one very desperate outfit.
sorry not down with market talks
What exactly is a “parallel” products program is that similar to the whole lexcen commmodore deal?
Ok Dingo so your predujice would stop you trading in a country with the largest GDP growth on the planet. Mmmmm now there’s good economic sense. Wouldn’t you respond to a good money making opportunity when you see it. I shouldn’t think for a Gnats bollock that the reason they have done this is to be number 1. Oh! and Toyota don’t own or have ever taken over another company?
Bubba – I think the parrallel bit refers to keeping the Indian/Asian bit separtae from other production as cars for these countries need to be built to a price, whereas the rest of the world they are built to higher specification and a more discerning purchaser.
cheers for that
Already Indian Roads are congested, I don’t know what will happen with this cheap box of wheels!
GM should first try to hold its own against Toyota & Honda on its own hometurf. Then dream about taking on Tata Nano