General Motors has announced it is considering the possibility of producing inexpensive compact cars with a sales tag of less than $10,000. The new move apparently is in reaction to the success of the Logan (pictured). The sedan, which is produced by Renault, is a minicar with few features and little, if any, styling.GM will collaborate with partners that can provide engineering, production, and distribution at rock bottom costs. The company has worked with GM Daewoo Auto & Technology in the past but, it said, is open to other options.
The world’s largest automaker is not alone considering such cars. Volkswagen, for example, is planning to produce a low cost car based on the next generation Polo. The vehicle is expected to be on the market by 2009 and priced around 6,500 euros ($8,580).
Our take? They say imitation is the sincerest of flattery. In this case, though, we’re not too sure following the crowd’s in GM’s best long-term interest. Does it really want to be considered the maker of inexpensive cars worldwide? It could consider, for example, emulating the German luxury brands in the U.S. such as BmW where it focuses on the more lucrative, high-end market. Regardless, it should not try to bring such vehicles to the high-competitive U.S. market where even “basic” vehicles are well-equipped with costly features such as multiple airbags, CD players, etc.
Via Auto Week
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