Word: carred
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...Delivering the Goods Among all the economic and logistic factors behind BMW's success, you forgot the main reason the German automaker is doing so well: it is making great cars [Aug. 6]. The 3-series is widely acclaimed as the best medium-size luxury sedan and has been for several years. You can do all the corporate restructuring you want, but that doesn't mean your car will be better than the competition. It might mean that you can sell it for cheaper, but especially in the luxury segment, that's not what customers are looking for. Roberto Incarbone...
...expected to sell the vast bulk of the basic sedans in Eastern Europe. But the Logan, which Renault builds in Romania and Russia and which costs as little as $7,200 - about 40% less than rival sedans - quickly took off in wealthier Western Europe as well. The car now sells in more than 50 countries and Renault is struggling to meet demand. "Our aim is to produce the most affordable car in its segment, and because we're doing that well, we're starting to see more affluent buyers and families buying Logans as their second and third cars," says...
...Building ultra-cheap cars is possible largely because of low manufacturing costs in developing countries. Tata and other Indian automakers estimate that their engineering costs alone are about half what they would be in Europe or the U.S. At the same time Tata has tapped the skills of Italy's Fiat, with which it has a joint venture in India, and engine designers in Britain's West Midlands region, some of whom were jobless after closures in Britain's auto industry over the past few years. Indian producers are relentless cost-cutters. Many, including Tata, now buy parts through Internet...
...company has yet to release a name for the car or even a sketch of what it might look like. But, "We should remove this perception of something that's going to be a dinky car," says Ravi Kant, managing director of Tata Motors. "It's a regular, wholesome car that will be a joy to drive and of course it will have very good fuel efficiency." Will that be enough to convince India's aspiring classes? Tata at the outset expects to sell 20,000 of its cheap cars a month in India, partly because consumers will see them...
...Still, car ownership is likely to continue to rise in countries such as India for the same reasons that Western cities with great mass transit are bumper-to-bumper anyway: people buy cars for convenience and status. Kant of Tata Motors says he's sick of going to parties in India and in the West and listening to "these rich people ask about congestion and pollution and global warming. I ask them, 'Sir, will you stop using your car and start taking the bus?' People should be thanking us our cars are small. Let all those SUVs in America...