iSPY - Nissan Versa 1.6 [cheapest new-car in the US)

Nissan is about to make a killing strike on US automotive industry.

Nissan Versa 1.6
the 107 horses 1.6L Versa is to become the cheapes new-car in the US, with a retail price of 9.990 USD.

Will this be the end of US car industry as we know it??

What will the US car industry do to counter this?

Source:
www.thetorquereport.com...

We own a Versa, it's a 1.8, rather than a 1.6. but it's a very well built car.
A heck of a commuter car. Very nimble and quick, and great for errands too.
Had it for about a year and a half now. As tiny as it is..We bought a little bistro table and 4 chairs a few weeks ago. the whole thing fit into the car, in an assembled state.
We did look at american cars too. But for price and features, and a great MPG, we picked the Nissan. We also own a 95 Maxima, that runs and looks like a new vehicle. That also figured in to our decision.

I doubt if this will end the US car industry.
American makers will be slow to respond, like usual. But we've learned lessons from the past. We'll adapt.

I'm kind of shocked to see that it's the only car under 10 grand on the market. I guess I've been here too long, and I've forgotten how things are back in North America.

A big part of the Japanese domestic auto market - and something crucial for keeping manufacturing going through the post-bubble economic doldrums - is the number of cars available under the 10 grand mark (1M¥, give or take. The figure is more psychologically important than the literal exchange rate).

Including the Kei car class, there are at least 15 models on the market here that can be driven away brand new for less than 10 grand. The base model Daihatsu Esse lists at about $6800US - I think that's the cheapest right now.

The cheap cars are plentiful. Young people buy them outright as a first car - rather than buying used. Families buy them as a second car. Companies buy them by the truckload for fleet cars. My company has three older Dahatsu Miras. They're small, excellent on gas, mildly entertaining to drive, and above all, cost $15,000 US. For three of them. Not each, for all three.

That alternative keeps people buying cars even when the economy is bad. It softens the blow. It keeps the factories open, keeps the dealerships busy, keeps people employed. And the cars are good - good enough that most people buying their second car tend to stick with the same brand when they upgrade. Makes sense, doesn't it?

I don't think this will be the final nail in the coffin for the Big 3. That coffin's got a lot of nails in it already, though. It's certainly going to hurt. The question is, can they roll out a better car for cheaper in time? Or, barring that, a worse car for substantially cheaper?