The former leading car manufacturer is being forced to change the way it functions in order to stay in the black. In June of this year the company filed for Chapter 11 bankruptcy protection. It seems that GM is now thinking about producing a low cost car in Asia to reduce labour costs.
There are plans in place to produce a car which would retail at around $4,000 – £2,400 – which would put it in the same low-price group as India’s Tata Motors $2,500 Nano model.
The new project is the brainchild of Nick Reilly, who is General Motors’ executive vice president of international operations. Reilly was recently promoted and has wasted no time in making his voice heard.
In a recent interview, Reilly explained the genius behind the new plan: “When Tata Motors in India came out with their $2,500 Nano vehicle it put a lot of auto makers on the spot.” He went on to explain that GM is currently: “looking at lower-cost vehicles, but do not know yet where it will be made or where will it be sold, though most likely in Asia.”
Thanks to www.telegraph.co.uk for the above quotes, for more information on this article please visit their website.
