If there’s a car company that seems to favor going for broke when it’s time to get a car from plan to production, it’s Volkswagen.The Bugatti Veyron, despite being a triumph of engineering retails for about £840,000 but costs a whopping £5,000,000 to build. (Okay, then again, GM might be a better example if it’s just for the “going for broke” title.)
But it seems that up-and-coming Indian automaker Tata is trying to do the same thing with their Nano. Dubbed as the “People’s Car,” the Nano is pegged to be sold at just $2,500. Unfortunately for Tata, it seems that the materials cost alone is set to breach the sale price.
That’s probably why they’re hankering all of their suppliers to drive the cost down. Remember how they’re forcing their airbag supplier to dish out bags that only cost $10 while the average unit price for them safety features is $150.
Source: The Truth About Cars
Jul 08