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Re: Just thinking about the car situation OT


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Posted by MarkB_MI on December 09, 2008 at 18:36:56 from (216.234.98.186):

In Reply to: Just thinking about the car situation OT posted by Animal on December 09, 2008 at 08:57:58:

Sure, anything is possible. Tata in India came out with a car for two thousand bucks earlier this year. The market in India for simple, inexpensive cars is HUGE.

Now, back here in the US, why don't we have cheap, simple cars? The number one reason is that they aren't that profitable. There are certain costs fixed into building a car: Federal safety and emissions requirements, product liability, shipping, not to mention the development costs. For most of the past twenty years, domestic auto makers have had a hard time building cheap cars that they can sell for a profit. Light trucks, on the other hand, were in big demand and could be sold at a huge profit.

Another thing to consider is people's expectations. You can sell a simple car in a lot of foreign markets, but US drivers expect many more amenities these days: air conditioning, power windows and locks, power steering, power brakes are all things that are pretty much standard. But they weren't even available as options on the base cars of the '60s.

The closest thing to "strippers" these days are some of the small pickups such as the Chevrolet Colorado. These vehicles are available with four cylinder engines, manual transmissions and without power windows and locks. But even the small pickups offer amenities that you couldn't get in the old strippers: air conditioning, power steering, air bags and brakes that actually work.


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