ABC News Video:
http://tinyurl.com/39hfsr

India labor rates, maybe a dollor an hour, US auto labor rates, 30-45 an hour when you consider all benefits. The car probably wouldn't pass US crash tests. Building a cheap car isn't difficult, building a safe cheap car is.

I read a story elsewhere in which it was stated that Ford will be subcontracting some if its manufacturing out to Tata Motors. Therefore, even if products with Tata's brand name don't make it into the U.S. market, consumers will be buying cars with Tata components. On the flip side, Hyundai has a plant outside of Montgomery, AL, and Kia has started building a new plant just outside of West Point, AL. You can't get away from globalism today.

And more car news:

http://www.goodnewsnetwork.org/business/general/eco-car-just-down-the-road-video .html

>>US auto labor rates, 30-45 an hour when you consider all benefits.

No, for UAW members it's more like $120 per hour, not including benefits.

you are a bit high Randy....

Just for fun and to put this in perspective, here is a selection of cars that cost around $2,500 MSRP brand new:

1924 Ford Runabout $2,650 for ten
1924 Chevrolet Superior Roadster $2,450 for five
1930 Chevrolet Six $2,220 for four
1931 Two Auburn Convertibles and a Plymouth Six for $2,535
1938 Ford V8 $2,500 for four
1938 Packard Custom 8 $2,750
1939 Hudson Touring Sedan $2,505 for three
1940 Willys 440 $2,475 for five
1940 Studebaker Champion $2,640 for four
1940 Cadillac La Salle $2,480 for two
1941 Studebaker President $2,520 for two
1947 Oldsmobile Station Wagon $2,456
1947 Frazer Nash Standard Sedan $2,295
1949 De Soto Custom Convertible $2,578
1951 Hudson Hornet 6 $2,568
1953 Dodge Coronet V8 $2,494
1954 Pontiac Star Chief $2,394
1955 Mercury Montclair $2,465
1955 Packard Clipper $2,624
1956 Triumph TR3 $2,595
1958 Chevrolet Impala $2,693
1958 Ford Fairlane 500 $2,428
1959 Rambler Ambassador $2,587
1961 Plymouth Fury $2,499
1962 Dodge Coronet V8 Club Coupe $2,595
1962 Ford Galaxie $2,450
1963 Pontiac Tempest $2,418
1963 MG MGB Roadster $2,659
1964 Chevrolet Corvair Monza $2,335
1966 Buick Skylark GS $2,596
1966 Ford Bronco 4 Wheel Drive $2499
1968 Chevrolet Camaro SS $2,588
1970 Dodge Dart Swinger $2,237
1971 Chevrolet Pickup $2,229

Any one of the vehicles on the list would probably total a Nano with a simple fender bender at Freddy's. Assuming, of course, the car wasn't already destroyed by an errant shopping cart.

1958 Edsel Ranger 4-door sedan (my current ride) $2,557.

Of course, adjusted for inflation my Edsel when new would be $17,290 in today's dollars.

Only the 1924 Ford Runabout gets close to the value of the Nano - it was about $3000 adjusted for inflation.

Chevell SS 396, bought new in 1966, just under $3,000. I bought one. can't buy one now for under 20,000.

Again, $3000 in 1966 would be $18,530 today (minimum wage was $1.25/hour). Your Chevelle would have held it's value well (assuming it was kept in pristine condition) but would not have been a good investment, and when you consider insurance, maintenance, storage, registration, you would have lost money. $3K in the stock market over the same period would have done much, much better.

What impresses me about Littlesongs' list above is that for the period of 1947-1971, there were many different styles of cars that could have been bought for $2,500.

I am also curious how, using 1924 production methods, Ford was able to build a car that is as inexpensive as the Nano.

Cheap labor, only one basic design, Henry Ford used to say "You can have any color you want, as long as its black".

Ford also massively dominated the market (I think in 1924 something like 75% of the cars on the road were Fords), so he had HUGE economies of scale. And all his production was in-house (in one end went iron ore, raw logs, cotton and rubber, and out the other end came a car).

And here's something I didn't know until recently - modern outdoor barbecuing was started by Henry Ford. After building thousands of wooden framed Model T's he had tons and tons of small scrap lumber. He turned all those little pieces of wood into charcoal briquets, then promoted outdoor cooking as a way to sell them. Just ol' stingy Henry squeezing out every penny of profit he can...

I think what's important here is to consider the ramifications of a car like this. These cars will be used in third world countries. Even at 50mpg, the fact that so many more people will have access to this option, it means an increase in demand for more oil.

It won't happen right away. The third world countries don't have the solid infrastructure yet (maintenance, good roads, fueling stations) to allow widespread use of these vehicles yet, no matter how cheap they may be. But I'm sure it is coming, and will be making a real impact in 5-10 years.

One piece of the puzzle that I don't have is, what other low cost cars are already on the market in the third world, and how much do they cost? By how much will the number of cars on the road increase in the third world? 10%? 50%? 500%? Also, could there be some benefit from these low cost cars getting people out of old, poorly maintained (in other words high-polluting) cars and into newer, cleaner cars?

If a $2,500 car--or even a $3,500 car--could go on the market in the U.S., I suspect that the market for used cars would change pretty drastically.

"If a $2,500 car--or even a $3,500 car--could go on the market in the U.S., I suspect that the market for used cars would change pretty drastically."

...and would be death to the average dealership. More and more of their profit margin is from the sale of used cars. Major dealers and even auto manufacturers (Ford, for one) is getting into the auto salvage business. These folks realized that it is worthwhile to establish an infrastructure that allows them to make money off the vehicles they sell multiple times if possible: New car sale, two or three used car transactions, then sell the parts when it's wrecked out.

I wonder what the used car price for a five-year old Nano might be - $500? If it survives that long...

"and will be making a real impact in 5-10 years."
"I wonder what the used car price for a five-year old Nano might be - $500? If it survives that long.."

I think the cars won't survive to see any infrastructure.

Re: Ford and barbecuing - Ever heard of Kingsford? It's the company Ford started to make briquettes - made from wood scrap and coal dust.

The US Market is different, in that we have a lot of safety and emmission standards. I was in Turkey about 15 years ago, and you could buy a "new" 1957 chevy, they had bought the tool and die works from cheverolet, and were still building them. But you could never import one into the US, because it didnt meet currrent safety requirements.

You can buy a "new" '57 Chevy here in the United States today, but you have to have one key component - the firewall of an original '57 Chevy (it's where the VIN is stamped) so that it is officially an antique car. Everything else is in reproduction. The company will even assemble it for you.

Same logic applies in construction. Many fewer regulations when remodeling than if building from scratch, so people have started razing old houses down to one wall standing, then build up from there.

Turnkey Mustangs (68) and Camaros (69) also available. Dunno about the Pacer.

"Many fewer regulations when remodeling than if building from scratch, so people have started razing old houses down to one wall standing, then build up from there."

Sort of. Lots of grandfathered waivers for setbacks, height restrictions, etc, But they will require meeting code for plumbling, insulation, electrical, HVAC et al. Propose one little thing in the bathroom for instance may result in a requirement for all new plumbing and disconnection of your septic tank if city sewer is available.

Do your research before hacking into your sheetrock looking for bags of money. The money you find may not cover the hack.

"Do your research before hacking into your sheetrock looking for bags of money. The money you find may not cover the hack."

That's what scares me the most. My wife and I are ready to plunge forward on a major kitchen remodel, and I'm really concerned with what the inspectors are going to tell me. My biggest fear is that they will require a complete electrical upgrade, which means a new meter (reset to current code location within 10 feet of front of house), new breaker box, etc. I don't even want to think about the septic system issues.

I remember some show a while back were they were doing a remodel on an old home and behind the plaster board they had used old movie posters as insulation. Don't remember the value but there were tons of them and I think they were worth more than the house was.

edselher, if you can find a (honest) contractor that does business in the city you live in (but perhaps not one that is submitting a bid), you can inquire about what could or will happen if you did this or that.