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Originally Posted by jcyuhn
It's not possible to build a $5K car for the U.S., that's why we don't have one.
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I don't think that's true - ditch the unions, etc. and you'll see what can be done. Pay a fair wage, but the benefits and $ some of these laborers earn is sick.
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Originally Posted by jcyuhn
Even if it could be done, I wonder whether it would make sense for G.M. to sell it. Such an inexpensive new car would certainly cannibalize sales of used cars (it would convert used cars buyers to new car buyers). That would devalue used cars, hence driving up lease rates for more expensive new cars.
Or, I could be completely wrong. Two semesters of economics twenty years ago only go so far...
- JimY
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I agree with this part 100% the automakers have been tricking the public into thinking cars should cost as much as they charge. In reality, they shouldn't. You have SO many hands in the pie driving up the costs. And coming to market with a $5K car when the other cars in your lineup cost 4 times that makes for a tough sale. Ironically, the $5K car would be more bare-bones and thus most likely less problematic (read 240D) (Don't read: Yugo - that was a VERY different story).
Anyway... I'd buy one right now if I could!
But I said that already!
Pete