Autoblog

The Tata Nano may be the most expensive vehicle ever to be the cheapest new car on earth. Violent protests at one of the car's planned assembly sites have gotten so rampant that the Indian automaker is near a deal to exit the nearly completed West Bengal facility all together. Just a few days after a supplier CEO was killed by a mob of protesters, two body guards were also assaulted at the contentious facility. The controversy in West Bengal centers around the land that local farmers lost to the $200 million Euro facility, and with the building nearly complete, it's hard to believe that land will be returned any time soon even if Tata did abandon the region.

Word out of India is that the state of Karnataka has offered Tata Motors 1,000 acres plus incentives to move Nano production there, and the local media is reporting that Tata is going to announce plans as early as next week. We're not in the micro car business, but if we were, we'd avoid building them where there is the constant threat of being beaten or killed by an angry mob. Moving Nano production to a region that actually wants the Tata there seems like a foregone conclusion at this point.


[Source: Motor Trend]

The Tata Nano, which will be the world's least expensive car, has already exacted enormous sums of money and time. A dispute over the location of a new factory has cost Tata close to a year of court wrangling and might end up spoiling a £200 million investment. Now the efforts to build the Nano have cost a life.

Unhappy workers were invited to a meeting with Indian and Italian executives of Cerlikon-Graziano Transmissions, which makes auto parts, to discuss reinstatement. Only a few workers were in the meeting, but more than a hundred were waiting outside. When those outside heard someone inside call for help, they rushed in, and in a mob fog anger, bludgeoned the company's operations head, Lalit Kishore Choudhary, to death.

It was later reported that some of the folks involved in the melee weren't even employees of the company. What Tata will need to urgently figure out is where it needs to go -- inside or outside of India -- to build the Nano without backlash. In the mean time, our condolences go to the Choudhary family. Thanks to all who tipped in.

[Source: Times Online]

Truck shoppers hoping to grab a Mahindra pickup early next year are gonna have to wait a little longer. It seems the challenges of bringing an India-made vehicle to the U.S. are difficult, and the vehicles now won't go on sale in the U.S. before the fourth quarter of 2009.

Even though 324 dealers have signed up to sell the truck, few of them have actually built the needed facilities. That's not enough to keep Georgia-based Global Vehicles from going ahead with their plans to begin U.S. sales. But GV's CEO John Perez recenly spoke to Mahindra's global managing director Anand Mahindra who, according to Automotive News, said that no truck with his family's name on it was going to fail in the U.S. Mr. Mahindra plans to run a fleet of his company's vehicles over 3.2 million miles of U.S. roads before he'll be approve the trucks for sale here.

The plan is for the trucks to utilize a 4-cylinder diesel engine not yet approved by the EPA. But Perez says he has no fear their January application will have any trouble getting blessed.

While the trucks are getting some U.S. experience, Global Vehicles will continue to sign up new dealers, and hopes to have 450 by the end of 2009. The importer has a sales goal of 50,000 vehicles a year, though Mahindra says it could produce as many as 400,000 U.S.-bound trucks if demand is there. And if Mahindra's promise of 30 mpg holds true, there could be huge demand. If things go well, look for a diesel-powered Mahindra SUV to follow.

[Source: Automotive News - sub. req'd, Pickuptrucks.com]

Click above for a high-res gallery of the Tata Nano

Raze 1,000-acres of farmland to build an automobile factory, and somebody is going to protest. Even in India. The automaker is Tata, and the protesters numbered at least 1,000 strong as they went head-to-head against police in eastern India yesterday at the future manufacturing site of the Tata Nano (rumored to be the world's cheapest car at just $2,380). The protests are rooted deeper than just "open space" issues. In fact, the real tension is between India's ruling party, and the communist-run government in West Bengal where the plant is to be located. The farmers are unwilling to part with their agricultural livelihood, while the government continues to promote industry. After blocking a highway for a few hours, the stick-wielding protesters were dispersed without injuries. Once again, progress wins out over pastures.

[Source: Automotive News, subs. req'd]

Honda is set to release the fourth-generation of its City subcompact and these newest spy shots show that development is well underway. The previous generation had been based on the Honda Jazz, known in the U.S. as the Fit, but the new model moves away from that platform and grows slightly larger in the process. Expect to see either a 1.3- or 1.5-liter i-VTEC SOHC engine underhood, along with either a standard manual tranny or a CVT automatic with seven preset ratios controlled through steering wheel-mounted paddles. Although Honda has no plans -- as far as we know -- to bring the City to the States, the Fit model has managed to post a huge 73% increase in sales this year. Considering how hot fuel-sipping little cars are these days in the U.S. market, Honda could certainly do worse than to offer this attractive new subcompact car in the States.

[Source: paultan.org]

Despite assurances from top GM brass, every bidder for the troubled HUMMER brand appears to be removing itself from the rumormill. Considered one of the strongest suitors interested in the off-road marque, India's Mahindra is the latest brand to pull out of consideration. According to Vice Chairman Anand Mahindra, "There has been a lot of speculation. I want to say categorically we are not pursuing HUMMER." That sounds pretty definitive to us, leaving Tata Motors as the only company from India still reportedly interested. Russian billionaire Oleg Deripaska has pulled his name out of the mix, as has China's Hunan Changfeng Motor Co. Until an official announcement is made, all of this is just speculation, but we have to wonder just how valuable the HUMMER brand could possibly be now that its sales have plummeted so far and so fast.

[Source: Automotive News - sub. req'd]

Click above for high-res gallery of the Hyundai i10.

Since last October, Hyundai has been selling the i10 minicar in 70 countries throughout the world. The diminutive sedan is just over 140 inches long (about 20 inches shorter than the Honda Fit), powered by an 80 hp, 1.2-liter four that returns up to 56 mpg and retails for between $7,800 and $11,200 in India. Those specs could be enticing for American consumers looking for a simple runabout that's smaller than the Fit/Yaris and larger than the smart fortwo, so Hyundai is seriously considering bringing it to the States.

According to a Hyundai source speaking with Automotive News, the i10 would retain its name and could be badged either a Hyundai or a Kia. Output would be increased, and its curb weight would grow by around 400 pounds in order to meet U.S. safety standards. But with features like keyless entry, ABS, dual airbags and fog lamps, the i10 could be a serious consideration for consumers looking for a cheap commuter with the amenities they've grown to expect.


[Source: Automotive News – Sub. Req.]

Click above for two high-res shots of the new Suzuki Alto

Suzuki will bring its seventh-generation Alto to the Paris Motor Show this October, featuring stylistic and powertrain upgrades to compete with the best and brightest from the budget-oriented, compact class. Based on the A-Star concept introduced at last year's New Delhi Motor Show, the new model will be built in India by Maruti Suzuki's Manesar plant, and will likely packing a 1.0-liter engine which should make Euro V emissions regulations a breeze to exceed. Expect the new Alto to find its largest market in India, along with limited sales throughout Europe. For an economy car, it's a pretty decent looker from what we can tell from the two shots Suzuki's released ahead of the show, and we expect it will find plenty of buyers looking for a relatively cheap way to get around. Check the press release after the break for more.


[Source: Suzuki]

The key to Chrysler LLC remaining as one of the Detroit automakers could turn out to be the rest of the world. Reuters reports that Chrysler has been chatting up both Tata Motors and Fiat as a means of survival. A deal with Tata might see the evergreen Jeep Wrangler being proffered in India by Tata, as well as the possibility of an electric vehicle partnership. The EV deal might be centered around an electron-motivated version of Tata's Ace, and those talks are running concurrently with whatever possible Jeep discussions are underway.

A little further west of Tata, in Italy, Fiat is reportedly considering leasing some of Chrysler's manufacturing capacity. A deal that puts business in Chrysler plants would certainly help rustle up some cash, while it would be mutually beneficial for Fiat as it contemplates a return to the North American market. Nobody is commenting officially, but we're likely to continue to see creative deals abound as everyone tries to keep their heads above water.

[Source: The Guardian]

As suspected, the KTM X-Bow is just the beginning of the bike-cum-automaker's assault on the four-wheeled world. According to CAR, KTM is in the process of creating a "slew" budget oriented vehicles, including a city car and "the world's first frugal and eco-friendly off-roader."

The SUV, codenamed the New Haflinger, will split the difference between KTM's world-renowned bikes and a traditional utility vehicle, with a small footprint, an open- or closed-top body and the ability to handle the rigors of the Paris-Dakar rally (which it plans to compete in with four wheels) while still holding its own on the road.

Three separate city vehicles are also part of the product onslaught, which is being co-developed with Bajaj Auto, India's third largest automaker. One will be a four-seat, four-wheel runabout, while a scooter and three-wheeled modern take on the tuk-tuk is under development. KTM's aim is to produce a wide variety of bodystyles and drivetrains, and its plans to include gasoline- and diesel-powered models, along with an EV in the future.

[Source: CAR]