Datsun making a come back

[steve8462]

In a bold move into the auto industry's fastest-growing category—emerging-market countries—Nissan Motor Co. is planning a revival to this Beatles-era star that might surprise its fans. According to interviews with Nissan's CEO, Carlos Ghosn, and other company executives, the rebooted car will appear in these countries as bare-boned as any rival has tried. And Nissan is hoping to set new lows for pricing for a global auto maker, offering the cheapest Datsun model for about $3,000 to $5,000. The lowest price is nearly a third the price of its most inexpensive car, the $8,000 Tsuru compact sold in Mexico. In revealing new details to The Wall Street Journal about the tightly controlled project, Mr. Ghosn said the company was committed to offering six Datsun vehicles, due out beginning in 2014, at a price range lower than all but a handful of smaller car makers in China and India specializing in mini autos.

this should be very interesting to watch unfold

[Danno]

but we won't see these cheapo cars. Says "emerging-market countries" will get the "cheapest Datsun model for about $3,000 to $5,000"

Still might be interesting to see what happens. I'm not holding my breath for much to happen in the US.

[steve8462]

at this point the USA is not much better off than some of these third world countries. cheap cars and cheap gas is what we need right about now! LOL

[Divers]

What model car is that in the picture?

[Danno]

http://en.wikipedia.org/wiki/Datsun_Sports

Sports 1000 or 1200. I didn't pay close enough attention to figure it out!

[TX82FIAT]

Don't kid yourself for a second. A cool low end econo Datsun will never make it to the shores of America at anywhere close to that price point. Our Government safety standards will prohibit that price point. We as consumers will not have a choice in this market. So you ask, how safe would this little car be in comparison to a motorcycle...

Wear your helmet on your cycle, wear your seatbelt when you drive, read the lable of everything you consume, don't smoke in public places, ban soda in our schools, walk in line with everyone else or be labled. Our social order will not allow the freedom of the dangerous Datson. We simply will not have a choice!

[steve8462]

my dad used to tell me when people did stupid things and got hurt or killed it was just the "culling of the herd" to reduce the stupid people. the government is going way too far to try to protect us from ourselves!

[RRoller123]

My take is that, in general, they are provbably on to something. There is an attractive niche at the bottom if they can make it profitably. The new normal in the US (an probably the EU the way it is going over there) is going to mean that the average person or family just doesn't have $20-30K to shell out for an average car these days. They are all too complex and too costly. Think back to when we were young. AC, auto, radios, were all options and frequently we didn't take them. Most cars today seem to be loaded up with way too many widgets and gizmos attached that in reality don't add a damned bit of value to the average owner. I would love to see a sub $10k car that offered basic reliable transportation offered in the States. Yugo tried this long ago, but it was a piece of crapolla. If a modern automated manufacturer could spit one out that was reliable, they would have quite a hit on their hands. imho...

[TX82FIAT]

RRoller, I agree that there is a huge market potential to leverage a niche at the bottom. A car would need to be manufactured someplace in the world for under $7K in order for it to come in under 10K once the cost of tranporting to the US and import taxes were paid. I'm not saying you could not produce a car for under 7K because that is happening all around the world. I am saying that you can not produce a car that meets the US safty standards for 7K. A good example of this is in Mexico. (excluding the huge tax rates consumers pay on new vehicles) You can buy GM, VW, Renault, Fiat models that are not offered or sold in the US because of the added cost of our higher safety standards. Ford for example manufactures the Ford Ka and the Ford Transit in a stript down version but does not offer that in the US for a variety of market reasons including our safety standards. Airbags alone are at a low end manufacturer cost of $1000 to $2200 to equipt one car. One airbag cost $800 excluding labor to replace following an accident when deployed in the US. At a car show here in San Antonio a couple weeks ago there were some really cool late model SEAT cars and a VW Palio that traveled into the US from Mexico. I was amazed that these cars had no air bags. Do you think we could sell a car in the US without airbags? anti lock brakes? MPH tested crumple zones?

One of the determining factors for FIAT leaving the US the first time around was they told the US Government to stick it rather than comply with Safty standards in the mid 80's. Fiat is not the only car manufacturer that has decided to make money with a low end product and not offer that product in the US. I have no doublt this low end Datson will be sold in Mexico and maybe even Canada. But I do not think the combination of economics and our safty regulations will allow for this product to be sold in the US. The not so smart car is sold for the rock bottom price of $12,490 if you can find a bargain up to $17,890 new.

[spidernut]

This is the one that we liked when we were in Japan. I just couldn't find one that wasn't rusted out.

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http://auto.webalta.ru/img/gallery/niss ... garo-1.jpg

[RRoller123]

@tx82fiat: I think you are spot on with your analysis. But I do occasionally see some new cars in the paper here for just north of $10K, so maybe there is a path to get down to 8 or 7. (?) Granted these are left overs, stripped down, etc. but they are new and offered at just north of 10. Not sure if there is a path available though to go much lower though, given the regs that you correctly mention. But there sure as hell would be a solid market demand for them!

[baltobernie]

Good article in last week's Economist: http://www.economist.com/node/21563280

I didn't know it, but there are more registered vehicles in the US than licensed drivers.

The way vehicles are sold here may inhibit the success of the low-priced car. The margins just can't support the "floor plan" of retail dealerships.

[RRoller123]

Good point, service will be an issue too, as the cost to get a basic repair at the rates the dealers charge will make it economical to throw the car away and just buy another.