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GM to build budget car for less than 4,000 usd to halt US mkt share slide - CEO

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GM to build budget car for less than 4,000 usd to halt US mkt share slide - CEO

September 10, 2007: 08:49 AM EST

FRANKFURT, Sep. 10, 2007 (Thomson Financial delivered by Newstex) -- General Motors Corp (NYSE:GM) is planning to build a low-cost car selling for less than 4,000 usd apiece to gain market share in the low-cost segment, chief executive Rick Wagoner told German automotive magazine auto motor und sport.

'We are holding some competitive low-cost architectures worldwide,' he was quoted as saying in an excerpt of an interview to be published on Wednesday, pointing to the fact that the company is already producing one model that sells for about 4,000 usd.

Wagoner also said he is expects the company's US market share to drop to 22-23 pct from 24.6 in 2006, without specifying in which period he sees the decline, the newspaper said.

'We are feeling a severe level of weakness in the US market, which is much stronger than we expected it to be half a year ago,' he told Auto Motor und Sport in an interview to be published on Wednesday.

To halt this decline, the company intends to reduce the number of models it makes, Wagoner was cited.

'The times are over when Buick and Pontiac each had ten models in their portfolio,' Wagoner said.

Wagoner added that GM has no interest in buying any of Ford's premium brands such as Jaguar, Land Rover and Volvo, the newspaper said.

source:

http://money.cnn.com/news/newsfeeds/articl...13-19463344.htm

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What car do they sell currently that is less than $4000 here? so what will this be? A Micro-car? a GM Hyundai Excell-type car? A Chinese import? This is intriguing. Wonder which way this car will go. Is this article actually discussing the US market?

Hell, can you buy a motorcycle for $4000 any more?

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What car do they sell currently that is less than $4000 here? so what will this be? A Micro-car? a GM Hyundai Excell-type car? A Chinese import? This is intriguing. Wonder which way this car will go. Is this article actually discussing the US market?

Hell, can you buy a motorcycle for $4000 any more?

Aren't the cheapest cars in the US today around $10k?

Maybe GM is planning on bringing back the '95 Cavalier (or Geo Metro?) tooling and selling it as a cheap entry-level model.. :)

Edited by moltar
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0|\/|G!1! 1T \/\/1|_|_ 83 T3|-| 43\/\/3$0|\/|311!1 |\|3\/3R|\/|1|\|D 1T \/\/1|_|_ 83 4 P13(3 0F S|-|1T!1!

|\|0\/\/ |_3T$ G0 |\/|4|<3 FU|\| 0F (|-|RY$L3R F0R \/\/4|\|T1|\|G T0 |\/|4|<3 4 (|-|34P (4R LOLOLOLOLBBQROFLMOA!11111

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I kept looking for the note at the bottom stating this is fictional, but it wasn't there.

Still, I'm skeptical. They can't make money on a Cobalt at $12,000. How are they going to make a car for $4,000?

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0|\/|G!1! 1T \/\/1|_|_ 83 T3|-| 43\/\/3$0|\/|311!1 |\|3\/3R|\/|1|\|D 1T \/\/1|_|_ 83 4 P13(3 0F S|-|1T!1!

|\|0\/\/ |_3T$ G0 |\/|4|<3 FU|\| 0F (|-|RY$L3R F0R \/\/4|\|T1|\|G T0 |\/|4|<3 4 (|-|34P (4R LOLOLOLOLBBQROFLMOA!11111

WTF???

Translation for those who have better things to do than translate the Dodge Owner's Code Book:

"Oh my god it will be the biggest piece of &#036;h&#33;!

Now let's go make fun of chrysler for wanting to make a cheap car!

Laughter while rolling on floor...my ass fell off."

Chevette 2007...I would love to see the chops on that one!

Edited by toesuf94
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Did Ford get desperate enough to sell the Model T tooling? :AH-HA_wink:

I'm thinking they are going to bring back the Geo Metro...or the Chevette.. take the old tooling, update to modern standards with a dozen airbags, and voila...

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Just building the car won't stop the market share slide. People have to actually buy the thing too.

Who here wants to buy a $4,000 micro car?

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In reality, this article says nothing about GM building a $4,000 car for American consumption.

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Who here wants to buy a $4,000 micro car?

Depending on what it is... me. There are certainly safety concerns with a small car, but there's a lot of fun to be had too. I didn't think I would like a small car until I owned one, and now I understand where they fit in the market better. Even with my Saturn coupe, there is a lot of space that rarely gets used. Occasionally I'll fill half the trunk with some groceries. Both coupes combined, people have sat in the back seat... half a dozen times over more than 3 years? Heck, the passenger seat doesn't have anyone in it 80% of the time.

I wouldn't mind seeing super-micro cars that are single person. If you could get motorcycle-like efficiency out of a single-person car (needs a cab and 4 wheels), then it could be justifiable for people to not ride with each other all the time (which they don't a lot of the time anyway).

Makes me wanna go out & build one. Could be a cool little roadster...

Anyway, a $4,000 car, however small, would sell simply based on price. The cheapest car always gets some sales. If one could be built and marketed halfway decently for well under the price of the current cheapest model, it could go like hotcakes.

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WTF???

Translation for those who have better things to do than translate the Dodge Owner's Code Book:

"Oh my god it will be the biggest piece of &#036;h&#33;!

Now let's go make fun of chrysler for wanting to make a cheap car!

Laughter while rolling on floor...my ass fell off."

Chevette 2007...I would love to see the chops on that one!

Oo...the Dodge owner's code book...how clever and original! That is so fresh! Did you spend hours thinking of it? By the way, you said it's a translation for those who better had better things to do than translate...so I guess you had nothing better to do? :P

For the uninformed, it's called Leet (1337). It's common internet speak, particularly among gamers. I'm not exactly the only one on the site that uses it from time to time, and they aren't mopar people. So now you know, and knowing is half the battle. :AH-HA_wink:

Back to your regularly scheduled thread.

Edited by Dodgefan
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Late to the game again.

Honda already has this covered:

Posted Image

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For the uninformed, it's called Leet (1337). It's common internet speak, particularly among gamers. I'm not exactly the only one on the site that uses it from time to time, and they aren't mopar people. So now you know, and knowing is half the battle. :AH-HA_wink:

g?G n00b

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'The times are over when Buick and Pontiac each had ten models in their portfolio,' Wagoner said.

Tick Tock, Tick Tock! :AH-HA_wink:

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Don't make me |-|4XX j00 :P

y? j3l0s 0f mai mad sk1llXX?

u m1ght b3 1337, but im 1338. :P

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This is all so strange, is it actually going to happen? Under $4000 is not much money at all...I don't understand how you could make a full-fledged car for that price, let alone make it safe. Yugos didn't even sell for that cheap back in the day, did they?

Also, why are they so worried about market share...it's profits that they should be focusing on.

Edited by mustang84
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If TATA motors can make a $1000 dollar car, then GM could certainly do something similar.

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those are some nice tatas

a 4000 dollar car would be horrible. not to mention unsafe. GM would never sell a 4000 dollar car here because it would erode the price structure on everything else they sell.

they must be talking about making a neighborhood GEMcar like car. as in, cant drive on real roads.

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If GM could do an $8000 car here in the US their market share would jump up.

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