The New York Times reported on Friday, that the completion of the new Nano factory in the West Bengal state of India will not be taking place.

The troubles surrounding the Nano continue to arise as time passes by, with the release and manufacturing date being pushed further and further down the road.

The Nano is a sub-compact mini car, which came to fame due it’s pricetag which has been announced to be just shy of $2500. Reuters have however reported recently that the new sticker price of the vehicle will be $2,130 making it the least expensive vehicle ever.

Ratan Tata, the head of Tata Motors has released a statement, explaining that Tata Motors is hoping they can resolve issues with farmers, whom have been protesting against the manufacturing facility for some time now.

Chrysler is currently in talks with Tata motors of India to see if they would be interested in distributing it’s Jeep Wrangler SUV. In India the Wrangler would be up against the like of several Mahindra makes, which is the leading manufacturer of small trucks and SUV’s in the region. Mahindra plans to enter the United States in the coming years with a nice broad selection of diesel fuel efficient small trucks and SUV’s.

Chrysler is also in talks with Fiat, planning on leasing out some of it’s current production capacity in North America for Fiat models. Chrysler is also entertaining the idea of distributing the vehicles for Fiat through it’s vast network of dealers.

You might have heard about Tata, and their $2500 micro car.  They even made headlines with their recent purchase of Land Rover and Jaguar.  What you don’t know is the troubles that lays ahead of them.

Their construction costs for their new plant built to make the cheap Nano is over budget by about $80 million.
Their commercial truck sales are down, and they are going to be incurring an integration cost for the newly bought Land Rover and Jaguar units.

Tata needs money and they need it fast.  Where it comes from is questionable, even to analysts.  Appearently they are to receive $1.7 billion from “rights issues” whatever that means.  Needless to say, their stock is slumping, because people have no faith they can produce the $2500 minicar