Why a Car Priced at under 10.000 EUR is a Bad Deal for the European Economy

I have recently read about the launch of Ford’s new car for the emerging markets – the Figo. The car is expected to be priced at between 5.000 and 6.000 EUR and will be sold initially in India. At the same time I could not help thinking what impact such a low-cost vehicle would have on Europe’s economies, provided it could be sold at these prices.