Nissans new 3000 Datsun Automobile
Nissan is working hard to achieve something that few modern automakers have accomplished: build a safe, reliable automobile for $3,000.While other automakers in the recent past have targeted the emerging markets with cars designed to appeal to people with thin pocketbooks, none has been able to manufacture an auto for much less than $4,000.China first attempted with theirChery automobilethat began production with a price tag of just under $4,000. India believed it could best that and tooled up for a shot with theirNano automobileproduced by Indian manufacturing company Tata Motors. The cost of that vehicle—originally touted as $2,500—still fell short of the magical $3,000 price tag. The basic no-frills Nano sold for between $3,200 and $3,600, and that's not competitive with India's major mode of personal transportation, motorcycles.The reason why international automakers salivate over the idea of building a car for under $3,000 is because a huge marketplace (and demand) exists for such a vehicle in the emerging markets of underdeveloped countries. It's estimated as more than half the world's population cannot afford to own an automobile. The marketplace represents potential profits falling into the range of hundreds of billions.Now, in a bold move, Nissan has announced the resurrection of it's iconic brand name, Datsun And the first car on the drawing board for the newly relaunched division is an auto that's nearly one-third of the price of Nissan's least expensive car sold in Mexico: the $8,000 Tsuru compact.While Nissan executives are excited about the project—and metaphorically rubbing their hands together in anticipation of the billions to be made from emerging markets in Asia—some African countries, South and Central America, and parts of Eastern Europe, others are skeptical that Nissan and the new Datsun will succeed.Chester Dawson of the The Wall Street Journalquotes Yukitoshi Funo, an executive vice president at Toyota Motor Corporation as saying: "It's a big mistake to think you can introduce a cheap car in emerging markets and be successful."Sour grapes? Maybe. Toyota's least expensive model currently falls between $8,000 to $10,000.Nissan's CEO Carlos Gosn thinks it can be done and Datsun will do it. The 58-year-old visionary claims the new low-cost auto will be "new and fresh." He's convinced it will appeal to the marketplace and will be within peoples budgets. He told the press recently that the new Datsun will become the corporation's primary accelerator of growth and will significantly increase the company's global market share.A formerly retired veteran engineer of Nissan referred to only as "Mr. Hosaka," was called out of retirement to tap his expertise on making small, efficient, and inexpensive autos. Hosako observes, "In cars made for the U.S. market, these days there's a huge mountain of regulatory and product liability paperwork. But that's not necessary for developing markets, where they are looking at the bigger picture."
So don't wait for the new Datsun to show up in a U.S. showroom any time in the future. It's not being made for the American market…too many federal regulations.
