Aug
18
2009

by

Why is General Motors Racing to the Bottom?

tata_nanoTo produce the next Tata Nano of course. In an age where most manufactures are cramming as much tech as humanly possible in to every price segment to satisfy new safety laws, fuel economy regulations, and the consumers insatiable demand for more and more modern amenities, it seems as if GM is racing to produce a car that seems to be heading in the wrong direction.

That is if you only look at the American and European markets as we are used to doing. It’s when you consider the eastern half of the world that this product begins to make a measure of sense.

“When Tata Motors in India came out with their $2500 Nano vehicle, it put a lot of automakers on the spot,” said GM executive vice president of international operations, Nick Reilly, at a recent press conference in Brazil

…”So we are looking at lower-cost vehicles, but do not know yet where it will be made or where will it be sold, though most likely in Asia.”

- MotorTrend

Take this into account along with GM’s decision to keep Buick, which is very popular in China, but not so much so in the States, and is appears as if GM is setting themselves up to be a major player in the Far East, going head to head with Honda, Toyota and Hyundai / Kia on their home turf so to speak.

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