"Renault, Nissan and Bajaj Motors are to jointly build a $2,500 car to
compete with Tata Motors’ Nano cut-price family model.
The car, called ULC for “ultra low-cost,” will be made at a new
400,000-capacity joint-venture plant in Chakan, Maharashtra, the three
companies said on Monday. Bajaj – best known for its motorcycles – and
Renault and Nissan will own 50, 25 and 25 per cent of the joint
venture respectively and the car will be sold from early 2011. "
True, for Ford and Chrysler as well.
But as they say: "putting all your eggs in one basket can lead to a
The NA 3 did it to themselves.
I'm a car buyer and became frustrated how they limited their variety of
cars in the 90s.
Toyota, Honda and Nissan played both sides of the fence very well.
It's all about who has the best management and unfortunately the
employees suffer most when management have a lack of foresight.
The presence of "foreign" car companies has saved us several times from
the NA 3 forcing cars we don't want down our throats.
This situation started in the mid 50s, when I bought a European car
because I couldn't stand the oversized, gas consuming, poor handling NA
In the 60s the NA compacts recovered them a bit and I bought one, but
then the compacts just had to grow in size, until 70s NA cars were crap
I didn't want, so I bought a Japanese cars in the 70s.
Smaller cars in the 80s recovered NA cars a bit and I again bought them,
but they grew in size then were ignored because the big money was in
oversized unnecessary personal vehicles.
Finally gas prices are high enough to force the monster vehicles off the
I hope the NA manufacturers recover, but they will have to change
product very fast to do so. They may not know what to produce for the
rapidly increasing gas prices, just as I don't know what to buy.
For now I'm getting the equivalent of Prius mileage by using my mid
sized car 40% less.
The selling prices of cars have not much relation to the production
The cheapest cars usually sell for a very small profit and are close
to the production price.
Expensive cars do not cost much more to produce than the cheap cars.
They are essentially the same as the cheap cars.
The so called luxury is what costs.
You get a holder for glasses, a bit more comfortable seats, a plush
cloath, nice radios and shining interior.
The added value is mostly superficial and does not mean much.
Interestingly enough then new improved technology comes around every
so often and is often first introduced in the more expensive cars and
as optional extras in the cheap cars.
A few years later they are part of the standard.
In extreme cases the only difference between a cheap car and its more
expensive brother is the sticker on it and the paint.
The optional extras are very very expensive.
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