Carmakers Nissan and Renault have cut back on joint projects planned for India. The reason for this is due to the sharp decline in car sales. Nissan said it would cut down on investments to improve cash flow. The plan was to produce cars by the first half of 2010 in the city of Chennai. The plan will continue, but will be scaled back.
The car that will be produced will cost roughly $2500. Another project that is getting delayed is the production facility to make trucks. This is getting delayed due to drop in construction activity and a 60 percent decline in the demand for trucks.
1 comment:
I feel that this is yet another sign of the hardships yet to come. I don't think we will get out of this recession anytime quickly, especially since our economy is so strongly intertwined with the global economy. It was a blessing, but right now is a curse because now everyone else is struggling as well.
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