GM's head of the Aveo program is very happy with how the Aveo is selling. It's GM's smallest car, and they've just announced that their bringing the five-door (the new name for hatchbacks) to America. And that's fantastic...we love it. But they're still way behind Toyota and Honda in the American sub-compact market.
Why? Well...because they aren't making them. There's only one plant that makes Aveos, and they make 70,000 of them a year for sale in America. Every one of them sells, and at a profit. But GM is apparently afraid to boost production much more because they just don't see a big American market for the cars. The idea is that they can only make money off them if they keep the price extremely low.
They do that by making the cars in South Korea at one dedicated plant, and absolutely never ever marketing the car. And while it's encouraging to see more and more small cars on the road...GM stands by the fact that subcompacts make up less than 2 percent of the car sales in America. But the new Aveo looks manageably attractive, and though they're not planning diesel or hybrid versions (for the American market anyway) it's a great car for next to no money.
Frankly, I'm tired of small cars being designed for low-income people...but I can't complain...since I'm happy to be able to afford an Aveo....and not much more.
EcoGeek's coverage of the LA Auto Show was underwritten by the General Motors Company, which, we agree, is very strange since we say some fairly mean things about them with some regularity. The only condition of their assistance (travel and lodging) is that I disclose it, which, of course, I would have done anyway.
written by Gee, November 15, 2007
written by yemek, November 15, 2007
written by David, November 15, 2007
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