GM and Wuling want to compete against the Tata Nano car

General Motor could increase its share in SAIC-GM-Wuling Automobile Co., as it looks to offer cheap small cars to compete with the Tata Nano car from India. GM wants to join to getting larger car makers' group, marketing inexpensive cars. The company currently offers vans and pickup trucks for under 3,000 USD. Nano's price is expected to start at around 2,500 USD.

"If Wulling were to start making passenger cars, GM would consider using those cars to compete against the Nano", Bob Lutz, GM's vice chairman of product development explains. Asked if there's any opportunity to increase its share in SAIC-GM-Wuling Automobile Co., Lutz doesn't exclude such possibility, saying that it is too early to speak about it. Inexpensive car would not appear on developed markets, because it would be difficult for it to cope official certification's requirements.

Lutz questions the price of 2,500 USD, saying that better equipped versions (in series cars there is e.g. only one side mirror), will be more expensive for sure.

Source: Auto News