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Tata Nano ‘The Worlds Cheapest Car’ gets its first test drive

Tata Nano

Now on sale: The Tata Nano

Tata Motors has begun taking orders for its Nano minicar.

The Indian automaker on Thursday opened up its booking system for the high-profile Nano, which it has pitched as the “people’s car”–a first automobile for families that, until now, have had to crowd onto a scooter. There are only approximately nine vehicles per 1,000 people in India, according to the Reuters news agency.

Bookings will close in just more than two weeks, on April 25. The company had made application forms for bookings available at the beginning of the month and said the response has been “very encouraging.”

Priced starting at about $2,000 for the standard version, the Tata Nano is a very modest machine. It’s about 10 feet long, weighing in at about 1,300 pounds, and Tata says it can “comfortably” seat four adults. The top speed for the car, which has a two-cylinder, 624-cc, rear-mounted engine, is about 65 miles per hour. The gas mileage is said to be about 56 miles per gallon.

Prospective buyers seemed most attracted by the low price (only about three times that of a low-end scooter), according to a Reuters report.

“I have experienced other foreign small cars,” Denis Quadros, 42, who owns a Maruti Wagon R, told Reuters. “They are expensive to maintain and consume a lot of fuel. But look at Nano’s mileage, and we know Tata cars are cheaper on maintenance.”

Tata plans to begin delivering the cars in July.

But even then, there could be a long wait for those who’ve booked a Nano order. At the end of June, Tata plans to announce the allotment of the first 100,000 cars, as determined by a computerized random selection. News agencies reported that it will likely take Tata more than a year to fill the 100,000 orders.

Sourced via cnet.com

Electric Car Makers: Oregon Wants You

In a flurry of electric vehicle activity, three back-to-back announcements this week have placed a spotlight on Oregon’s plans to be the friendliest state in the nation in which to build, sell and buy electric cars.

At a press event on Monday, Oregon’s governor, Ted Kulongoski, was talking up Nissan’s previously announced partnership with the state. According to Nissan, the company plans to introduce its upcoming electric car in Oregon in late 2010.

Not to be outdone, on Tuesday the Norwegian electric car startup, Think, was in Portland being wooed by the state as one of 8 potential places to site their first car manufacturing facility in the United States.

Although Think has been plagued by bad financial news recently, the company’s North American C.E.O., Richard Canny, said he was confident that Think would find the funding to pull through its current financial situation and added, “We believe Oregon could be a really good place for Think to do business.”

Finally, in a first-of-its-kind partnership in the United States, Mitsubishi announced a strategic alliance with Oregon to develop an electric car charging infrastructure in the state. And in a deal similar to the one already in place between Oregon and Nissan, Mitsubishi said it also plans to release its upcoming electric vehicle models the state.

(Last year Oregon had also aggressively negotiated with the Chinese carmaker, BYD, to manufacture its line of plug-in hybrids in the state for sale in the U.S.)

So why has Oregon become a hotbed of activity for electric vehicles all of a sudden? Governor Kulongoski is currently pushing a plan before the state legislature to cut some hefty tax breaks for electric vehicle manufacturers who choose to come to Oregon, as well as provide huge tax credits to purchasers of electric cars.

“My vision has always been for Oregonians to be able to drive from Astoria to Ontario and from Portland to Ashland emission free,” Mr. Kulongoski said. “Families could be making that drive in an emission-free vehicle manufactured in Oregon by Oregonians.”

Sourced via nytimes.com

Feds to back warranties if automaker fails

Minister of Industry Tony Clement

Ottawa is providing up to $185 million to guarantee warranties on vehicles sold by General Motors and Chrysler, as the companies attempt to restructure, and another $700 million to protect hard-hit auto parts suppliers.

Industry Minister Tony Clement said consumers do not have to do anything to receive the federal warranty commitment — if either company were to go bankrupt.

However, Clement said it only applies to new vehicles sold as of Tuesday until the restructuring period is over.

“This is a new program. It matches, very clearly, what the United States has been doing,” Clement said.

“On a go-forward basis, as things become less stable, we felt that this was a way to assure the buyer that if you buy a GM product, or if you buy a Chrysler product, your 5-year warranty for parts and labour and service will be acted upon.”

The program is expected to cost the government $185.3 million.

General Motors Canada welcomed the announcement, and said in a press release, “We remain focused on taking all necessary steps, working with the governments and all our stakeholders to quickly and successfully complete our restructuring in this challenging market.”

Canadian Auto Workers president Ken Lewenza also backed the move.

“There seems to be a pattern — that the Canadian is following whatever the U.S. government does,” Lewenza told CTV’s Power Play on Tuesday. “I would suggest that’s appropriate for them to do that, in terms of the warranty support.”

Last week, U.S. President Barack Obama announced a similar measure saying his government would help consumers by backstopping auto warranties.

Earlier Tuesday, Reuters reported that GM was in intense and earnest preparations for a bankruptcy filing. The move, which would likely also occur in Canada, would allow the company to restructure.

“There used to be a phrase in the auto sector: Too big to fail,” Clement said when asked about the report. “I don’t think that phrase exists anymore in this sector.”

If the company does file for bankruptcy, one analyst says assembly line workers would likely be safe, but not suppliers and dealers.

Bill Pochiluk, president of industry adviser AutomotiveCompass, told The Canadian Press that GM’s assembly plants may be safe because, “from a production standpoint, the product mix in Canada really is quite excellent.”

But he added that filing for bankruptcy may damage the company’s brand and cut into sales.

“One of the reasons to try and keep these companies around as long as possible is the impact that would have on the supply chain,” he said. “It would be dissolving before our very eyes and it might be difficult for anyone to produce vehicles.”

About 12,500 people in Canada work for GM, mostly at assembly plants in southern Ontario.

Clement also announced $700 million in additional help for struggling auto parts manufacturers.

The money will be given to Export Development Canada’s Accounts Receivable Insurance program, which is available to parts suppliers.

Accounts receivable can be one of the largest assets on a supplier’s balance sheet and the recent global credit situation has pinched these companies’ cash flow to a trickle, Clement said.

Canada has more than 650 auto parts suppliers which shipped a combined total of nearly $33 billion worth of supplies in 2007.

Sourced via toronto.ctv.ca