GM studies low-cost car for emerging markets

[rickaren]

GM studies low-cost car for emerging markets

Posted Tuesday, Aug 18, 2009, 1:56 pm in Employee News

General Motors Co. is exploring the idea of creating a small car priced below $5,000 for emerging markets, Automotive News reported.

“It’s definitely a segment that is interesting, and something that every manufacturer is looking at,” spokesman Johan Willems told the publication. He declined to say if GM is in the process of developing such a vehicle, the paper said.

He was responding to a questions prompted by a Wall Street Journal report quoting Nick Reilly, newly appointed executive vice president of international operations, saying GM had plans for an Asian-built small car that would be sold for about $4,000, the Automotive News said. According to Willems, Reilly did not use the $4,000 figure but did say if GM made such a vehicle, it would cost less than $5,000, the story said.

“In response to a question about the Tata Nano, Nick basically said the Nano was a vehicle that was developed at a very low cost point for the Asian market, and we are also interested in those kinds of vehicles,” Willems told the paper. India’s Tata Motors began selling the $2,500 Nano, billed as the world’s cheapest car, this year, the story said. (Automotive News)