Nissan Plans Low-Cost Cars For America
Yesterday we confronted established automakers’ fears of the disposable automobile imported from China or India, but as Automotive News [sub] reports, the majors aren’t just sitting still on the issue. Nissan, which already sells a decontented Versa for $10k is planning two more vehicles at that price point for the US market, based on its new low-cost “V” platform. “The V platform will be sourced in Mexico” reveals Nissan’s North American chairman. Three vehicles will actually be produced in Mexico on the platform, but only two of them will be sold stateside.
I think $10,000 is a good point. As you know, there are very few new cars sold at that price point in the United States… It is too early to tell you the (standard) equipment in those cars. The only thing that we can tell you is that we will hold that price point.
Nissan’s Carlos Tavares says Nissan’s Mexican plant will produce 200k of the million V-platform units it hopes to build globally. One of the vehicles produced will likely be a replacement for the global Nissan Micra. The other is likely to be some kind of subcompact MPV.
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That would be ignoring the simple economics of the situation.... China's savings rate probably far outweighs that of the US. We are a spending... a consuming nation. We can't just flip the coin and start saving all at once... that would bring far more economic hardship. To put it simply that we would be better off without credit is to ignore the nuances of economics. Everything is fine in moderation... even car loans.
If Nissan can sell a non-stripper Micra (air, power windows/locks, etc) for $10,000, they'll have a huge hit on their hands. I think there is a pent-up market for a fun, non-stripper new car that doesn't scream "cheapskate" like the Versa 1.6 does. A lot of people don't want the potential problems of a used car, but also don't want a new car in which they have to fan themselves while driving or hum because the damn thing doesn't have air or even a radio.
I can see a market for a stripped car, but not a stripped little car. Double it, and give us a de-contented Ford Flex without the third seat and a vinyl bench seat in the second row. A big box that looks purposeful, durable and capable of serving families during the Obama Mega-Recession years. I don't want an obsolete design, like a Chevy Impala, or even a Traverse. A completely new car with a new attitude designed for tough economic times. Imagine a completely updated and new 1965 Ford Fairlane. Now price it at $20,000.