Though real estate protests threatened production of the Tata Nano, a change in factories may allow the $2500 car to reach consumers.
Chairman Ratan Tata announced today that his firm would be building an all-new factory in Sanand, India, for the Nano.; When completed, the facility will have the capacity to build up to 500,000 cars each year.
The announcement follows a long dispute surrounding the Nano’s assembly plant.; Originally, Tata hoped to place a new factory in Singur, India, but month-long protests by unhappy residents forced the company to abandon those plans.
Luckily for Tata, the new site will rest upon 1100 acres currently owned by the Bengalese government, who is more than happy to work with Tata for the facility.; In return, the factory may provide nearly 10,000 jobs to the local economy.
Though Tata hoped to launch the Nano by the end of this year, the relocation issue is forcing the car to be delayed until the first quarter of 2009.
Source: Automotive News Europe