Another Big Threat To Marutis Monopoly
Automobile giant General Motors (GM) is planning a new low-cost small car that could find its way to several developing countries, including India where it could threaten the monopoly of the Maruti 800 in the small automobile segment.
The subcompact car, codenamed Blue Macaw, is slated to be priced at $9,000 or less, and have a 1.0 litre engine. Expected to debut in Brazil, the new GM product would compete directly with rival Ford Motors $11,000 Ka and Fiat SpAs Uno currently priced at $10,000.
GM is hoping that the new offering which is billed as set to have one of the lowest sticker prices in the world, will allow it to compete effectively in the small automobile segment in markets as diverse as Europe, South America and Asia. If and when it does come to India, the new GM car, small by American standards, could become a contender for the Maruti 800 market in the country. The project, however, is being kept under wraps by the Detroit-based automobile behemoth. I cant give any information on where the car will launched, where it will be manufactured, its engine size or suppliers, a GM spokesman at the companys Detroit headquarters told Business Standard.
GM was clearly unhappy that news of its small car project leaked out during a programme to felicitate suppliers in Brazil. GM officials in Brazil were quoted in Wall Street Journal as saying that the project was part of the companys strategy to woo consumers in developing markets. Company officials are hoping that the low sticker price will help sell millions of new cars across the world.
When you think about emerging markets like China, India and Central Europe, at this price point, you could get into that level of volume, GMs newly-designated director of small car development Mark Hogan was quoted as saying in the Journal. GM officials at the Detroit headquarters were reluctant to give further details until the car was officially unveiled.
Reuter adds from Detroit: The Wall Street Journal and the trade weekly Automotive News quoted GM officials in Brazil as saying the new car which is expected to utilize production techniques that maximize efficiency, will be built in a new, $600 million assembly plant that the company is building in the southern part of the country.
With a such a low price including sales taxes GM hopes the car will open up a new market of consumers who previously could not afford to buy cars and trucks, the two published reports said on Monday.
In addition to the GM assembly line, the plant will house about 20 outside suppliers that will build major parts sub-assemblies for the vehicle. Michael Robinet, an automotive consultant with CSM Forecasting in Farmington Hills, Michigan, said the Blue Macaw vehicle is based on GMs next-generation Opel Corsa platform.