General Motors is currently developing an ultra low-cost family car designed for emerging markets, similar to Renault’s Logan sedan that sells for less than $10,000. Automotive News reports that engineers are still in the proposal stage and according to some senior GM sources, the new car will be sold under the Chevrolet label sometime in 2010 or 2011.
The vehicle would be limited to emerging markets such as Russia, India, eastern and central Europe, South America and possibly even China. Engineering and production is to be handled by GM Daewoo Auto & Technology Co. in Korea or GM’s division in Brazil. There are no plans whatsoever to bring the budget car to the US or other western markets.
Renault and its Dacia brand has been enjoying great success with its entry-level Logan, selling 248,000 units since its introduction in 2004. Nissan CEO Carlos Ghosn expects the annual sales rate to jump to one million units by 2009, a figure GM cannot afford to ignore. Toyota is also entering the low-cost car market, as is India’s Tata, who plans to market a car for under US$2500.
[Source: Motor Authority via Automotive News]
