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Indian Automotive Industry
#11
General Motors mulls ultra-cheap car with motorbike parts to compete with Nano

<b>Berlin - US automaker General Motors may produce an ultra- cheap car using inexpensive motorcycle parts to meet demand in emerging markets, a senior European executive was quoted as saying Saturday. Carmakers have been shaken by the challenge from the Tata Nano, a bargain car recently unveiled in India.</b>

Hans Demant, chief executive of GM's German unit Opel, told the German weekly Auto Motor und Sport that Opel was studying an 8,000- euro (11,600-dollar) rear-engined car that might be built in cooperation with a motor-cycle or motor-scooter manufacturer.

"We are trying something new in the city-car field. The conventional development approach won't work. So we are looking at the capabilities of advanced motor-cycle-style drive trains in connection with a rear engine," he told the magazine.

"Thereafter the question would be, who could we cooperate with? Maybe with a scooter or motor-bike maker. Or perhaps with an Asian supplier to such two-wheeler manufacturers," he said.

Demant said the ideas were just at the discussion and review stage, with no decision likely till next year.
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