The $2500 Nano from Tata Motors has challenged international players. What was at one point termed ’impossible’ has now turned into ’competition’. GM announced it would use its Chinese company Wuling to pit against the Nano in the future. Wuling is a Chinese company which manufactures vans and pickups for around $3,000, and is partly-owned by General Motors.
GM’s vice chairman of global product development Bob Lutz, said "We move a legacy architecture and parts that have been around for a long time,". "Then we create a vehicle that’s very inexpensive, and it could not be sold in the developed world because it wouldn’t meet regulations.", describing the way GM would go about making their small car.
GM is right now working on a parallel products program which focuses completely on small cars for developing countries like eastern Europe and Asia where the battle ground for super low-cost car is heating up.
"You add an extra passenger seat, that’ll be slightly extra and so forth," comments Lutz, questioning whether that the Nano will retail at $2,500 once amenities are added. "The average retail is probably going to be more," he added.
I don’t think there is room for another passenger seat in the Nano, Mr.Lutz. You should check your facts before making such statements!