General Motors Europe unit Adam Opel plans to build a city vehicle for EUR8,000 which will use cheaper motorcycle components, Opel head Hans Demant told German magazine auto, motor und sport.

An Opel spokeman confirmed the accuracy of the advance copy of the interview cited by Dow Jones Newswires ahead of publication on Monday (11 February). Demant reportedly said Opel is currently in the "discussion and examination phase" for such a rear-engine, low-entry model.

If a decision for such a car is made, the question will be whether Opel should cooperate with a scooter or motorcycle producer, or an Asian supplier of two-wheel vehicles, Demant was quoted as saying.

"In view of the current Euro Two discussion, a minivehicle would generally be interesting for Opel so we are looking at various ideas but there are no specific and approved plans at this time," the spokesman told just-auto.

The report noted that Indian car maker Tata Motors last month said it would enter the low-cost car segment with its hatchback Nano model, billed as the world's cheapest car [at $US2,500 before taxes and on-road costs].