is this more trouble for the US Auto Industry?

I live in Michigan.  The automotive industry has driven our state’s economy for many years.  And the industry is hurting, so our state is hurting, too.   

I just read an AP article about Tata Motors of India.  Wow, if their plan isn’t blocked by environmentalists across the world, it could mean even more trouble for an ailing US Automotive industry.  US manufacturers are having difficulty selling in their own country.  But it will be more difficult to manufacture and sell globally when they have a competitor who’s planning to sell a car for $2500. 

Of course, that car will be a stripped down model, but it will accomplish the goal of getting someone from one destination to another.

I think when Americans started treating their cars more like their homes (all the modern conveniences money can afford), we made it more difficult for the US Auto industry.  Could you imagine GM, Ford or Chrysler selling any car for $2500?  Could you imagine any American buying a $2500 car?

Experts on pollution are concerned, too.  India’s economy is booming, which means more people will have the money to purchase a car.  And offering one that’s affordable will dramatically increase gas consumption and pollution. 

Like it or not, the US is impacted by global changes.  As other countries become more industrialized, our comfortable way of life becomes less comfortable.    Pollution increases, gas prices rise . . .

obahsomah

having been to india, i can say, they could do with some updated transportation! ;)

i think before they release them they should get them to more of an eco-friendly vehicle.

and while that seems very cheap to us for a car, you have to remember, most indians don’t make $2500 in one year. so it won’t likely be a billion little nanos driving around…now if they made their way to china…that’s a whole other story!

obahsomah

oh and i wanted to get the follow-up comments so i’m commenting again! :D

revzwife

I thought about the cost of living issue, but wondered if India’s economic progress would eventually catch up to ours.

I’d read an article recently about the IT industry there. The article indicated that Indians were beginning to earn much more than they did when many US companies started off-shoring their IT help desk support, etc.

obahsomah

did you see the article that the taj mahal will no longer accept us dollars as payment for entry?! because of the low dollar!

i know there are pockets of economic boom in India, but I think we will only see the huge growth in the cities. Most of the Indians I know get to work on bus, train or by mopeds. they still value education over “things”. The friends we have here one car, and send money back to India to send all of their nieces and nephews to school, and pay their parents’ house payment. It is inspiring to me.

revzwife

AAAGH,

I just wrote something, and I forgot to login.

Oh well, tomorrow.

Nice chatting with you. I don’t think I blame Tata motors as much as I fault consumerism in the US. Cars are status symbols, not ways to get to work.

obahsomah

totally agree! i wish there were more options for getting around than great big cars and trucks everywhere for one person to be riding in!

Cindy Swanson

Beth, I’ve got to admit, when I first heard the stories about this Indian car, I thought about the old Saturday Night Life fake commercial for the car that was made out of clay. I didn’t stop to think about the effect on American auto sales. Obviously, living in the Detroit area, you would be attuned to that!

Hope all is well with you, friend! :)

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