Click image for a gallery of the GM China Chevrolet Spark
If everyone else is going to build cars like Tata's headline-grabbing Nano, GM's going to pile on, too. The Lutz cites GM's part-ownership stake in Wuling Motors, a Chinese manufacturer of sub-$3,000 utility vehicles as a possible source of a GM Nano competitor. Lutz went on to say that one way to make an inexpensive car for the developing world is to repurpose a legacy platform that has become obsolete. The tooling and design will have long been paid off, and there'll be plenty of experience from the manufacturing side, too. This is essentially what GM China is already doing with the Daewoo Matiz/Chevrolet Spark. It might smack of dumping an old product that isn't safe or clean enough for mature markets, but is "good enough" in other parts of the world. That said, it could also be a way to maximize the life of an investment while also providing developing markets with a better product than they'd have otherwise. Lutz also called into question whether the average Nano would sell for its rock-bottom $2,500 price of entry, anyway. Adding extra amenities will likely push the price of most Nanos higher, says Bob.
[Source: Auto News - sub req]
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Reader Comments (Page 1 of 2)
Mike @ Jan 26th 2008 2:10PM
This shows that GM is committed to place product in every market in the world. As North America is a flat growth market, with their structural costs, they must continue to grow or fade away.
oby @ Jan 26th 2008 2:18PM
GM has proven again and again they are next to useless at building small, safe, economical cars. I hope the Indians eat their lunch!
Derek @ Jan 26th 2008 10:02PM
Only in the states. Look on the GM's China site, or the Chevy UK site if you don't speak Chinese (I don't either). The Aveo is near the middle of the size range that GM sells in other markets. Considering that GM is growing quite well outside the US, I can only assume that their small cars do well elsewhere.
Brooks @ Jan 26th 2008 2:35PM
Of course it smacks of selling older, less safe, dirtier cars. Because that's exactly what it is. And that's fine. You could say the same thing about used cars, old buildings, or fast food. People are smart enough to balance cost versus quality on their own and make their own decisions. There are no ethical issues in giving them another option.
Mi key @ Jan 26th 2008 2:36PM
When did GM become a Size-Queen?
I Thought in the Past GM as always said there No Market or Profit for them in small cars. When did this change.
I for one have always believed that it's not the size, but quality and quantity that matters. Good for them in expanding their views.
Mike @ Jan 26th 2008 3:09PM
Hey Oby:
Jee I'll bet that Tata is a world class, 5 star crash rating, anti-skid, abs, side curtain airbag, front airbag, with telemetric connection to a 24/7 call center in case of breakdown or crash. Perhaps you should think. What is the base of your anger at GM ? It would be better for them to ignore the booming market in India, or try to sell them a $ 40,000 Acadia to compete against the Tata ?
friko @ Jan 26th 2008 3:25PM
It is sold here in Mexico as Pontiac Matiz G2. It's a nice little car. Costs about 7,000 usd taxes included.
friko @ Jan 26th 2008 3:25PM
It is sold here in Mexico as Pontiac Matiz G2. It's a nice little car. Costs about 7,000 usd all the taxes included.
Sandeep @ Jan 26th 2008 3:42PM
frankly, these cars can't be much worse than the existing micro- cars in developing markets. Before the Tata Nano, the cheapest (and most popular) car in India was this:
http://en.wikipedia.org/wiki/Maruti_800
Designed in 1984 to be as cheap as possible. Can the nano really be much worse?
HotRodzNKustoms @ Jan 26th 2008 3:47PM
Developing markets just need a proverbial Ford model T, something cheap and rugged, not necessarily the world's greatest car but great cheap transportation.
Mke @ Jan 26th 2008 3:57PM
Wow, this looks far superior to the Nano. That thing looked like a really awfully built deathtrap. This one looks like a much better built deathtrap.
BobinCobb @ Jan 26th 2008 4:16PM
More GM Shoulda-coulda-woulda . . .
GM jumping into the Indian market will be a boost for Tata. Maybe, should double my investment in TTM, given GM;s "devestating response" to Toyota.
S1500 @ Jan 26th 2008 5:05PM
I like the Spark's looks better than Gm's current subcompact, the Aveo(rebadged Daewoo). If we can put a man on the moon, we can make a small, safe, fuel efficient car. Heck, look at all the Kei cars in Japan.
Derek @ Jan 26th 2008 10:02PM
Comparing a Spark to an Aveo is like comparing an Aveo to a Cobalt.
The Spark is roughly 12" shorter than the Aveo hatchback.
John @ Jan 26th 2008 5:30PM
My question is this, is the accident death rate high in the developing markets where these cars are being sold? I understand saving gas, and affordability, but I would not like to be hit by a truck in one of these. I don't care who builds them.
Derek @ Jan 26th 2008 10:02PM
Other markets do not have hordes of people driving full size trucks to get groceries like the US does. The average size of cars is far smaller, so I would assume that driving what we consider a subcompact would be similar to driving a midsize sedan over here.
Sandeep @ Jan 26th 2008 11:21PM
They also move at a much much slower pace than we do.
why not the LS2LS7? @ Jan 27th 2008 10:15AM
I was in Shanghai, and people all drove like idiots. They played merge chicken with huge trucks in their shitboxes all the time. People drove up the shoulder of the road, etc. But I NEVER saw one car hit another.
I think that in these countries, roads are either too awful and thus people drive slow or the roads are completely clogged (as in Shanghai) and thus people drive slow.
All in all, the roads seemed pretty safe, despite people driving like idiots, the roads being packs and the vehicles being so crappy that seatbelts are optional.
ronnie schreiber @ Jan 27th 2008 12:21PM
Ranan Tata has made it clear that one reason for producing the Nano is for safety reasons. The Indian car market is about 2 million units, but the two-wheeler market is 7 million units. Many families travel by motorcycle or scooter. That's right, a family on a motorbike. Dad in the saddle, mom sidesaddle behind holding a baby, and an older on the gas tank, holding a younger sibling.
Compared to five people on a motorcycle the Nano is incredibly safe. Besides, the car will meet all Euro III and Euro IV crash and emissions standards.
Will it survive a head on with a semi? Neither will the well engineered M-B Smart cars, nor a full size SUV.
GM wants to get in that market because Tata has created an entirely new segment of cars that really doesn't cannibalize sales from other segments. The segment, people who hitherto had no dream of owning a car, is potentially huge. Remember there are something like 2.5 billion people in India and China.
As for "dumping an old product that isn't safe or clean enough for mature markets", Lutz isn't talking about using the Vega or Chevette platform (though the Chevette was actually an early "world car" that GM brought here after the '73 Yom Kippur war and subsequent oil crisis).
What Lutz is talking about is basically cost engineering. Similar to his remarks about how bringing the Volt to market quickly means they don't have time to make it cheaper. There are many ways to engineer to a price point. Tata is doing it one way. Using already bought and paid for technology and tooling is another. You can be sure that if GM pursues this path, any vehicle they make will meet the appropriate standards for the market in which it is sold.
Schira @ Jan 26th 2008 6:10PM
Old Deawoo Matiz ... with a new badge