Jun 02, 2009 -- $8,000 new car to hit the U.S. market by 2012?
Remember the Yugo? This much-maligned vehicle made in the former Yugoslavia was just about the worst car ever made in the history of the automotive industry. In fact, Consumer Reports once said a consumer would be "better off buying a good used car than a new Yugo."
The quest for a good cheap automobile goes on. Recently, India rolled out a 4-door, 5-seater called the Nano that sells for around $2,000. Orders for the Nano exceeded 200,000 in just 2 weeks and the customer waiting list had to be shutdown.
The Nano would sell for around $5,000 if it were to come stateside. That accounts for the expense of retro-fitting the Nano for our emissions and safety standards. Even so, that would still be almost half the cost of the current cheapest car in America -- a stripped-down Nissan Versa at $9,300.
The inspiration for the Nano was the Logan by Renault. This particular 4-door sedan is available in Europe fully equipped for $6,000-8,000. It was originally marketed in Eastern Europe, but has found vast popularity among Western Europeans.
It's clear there's a large untapped market for a reliable basic new car in the United States. Many Americans live on an annual salary of $30,000-$40,000. They simply can't afford to buy a new car.
Clark wants to go on record with his prediction that we will have a mainstream affordable vehicle retailing at $7,995 (or less) by 2012. Only time will tell if he's right.
