GM seriously evaluating bringing mini-cars to America
When General Motors unveiled their three mini-car triplets the Chevy Groove, Beat and Trax at the New York Auto Show in April, they weren't really intending to bring them to the US market. They mainly wanted to show the New York financial community what their Asian operations were capable of producing.
The public reaction to the cars was so overwhelmingly positive that GM is now seriously evaluating bringing a similar car to the US market. They know what needs to be done to make such a car meet US regulations and meeting future fuel economy standards would obviously not be an issue. The big problem is determining if there is enough market demand to justify the investment. Traditionally such small cars have never been strong sellers in America, but if fuel prices remain high and continue to climb the market will surely change.
[Source: The Car Connection]
Reader Comments (Page 1 of 2)
GoodCheer 10:39AM (7/31/2007)
"Traditionally such small cars have never been strong sellers in America"
Is it really that small cars have not been popular in America, or is it that American automakers have always stressed "cheap", rather than putting any effort to build nice, good, comfortable, reliable, well styled cars that are also small?
Somehow Toyota, Honda, VW, Mini etc. don't seem to have much trouble selling small cars to the American market.
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AlexP 11:05AM (7/31/2007)
Um, FYI, the Aveo is (as far as I know - it was for a couple of years at least) America's best-selling subcompact.
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AlexP 11:06AM (7/31/2007)
IMO, they're definitely coming, there's no way they can take a step backwards.
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Fuzzy 9:04PM (7/31/2007)
Wow....do ya really think? It's well past time we had choice AND FE.
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shmuupy 12:17PM (7/31/2007)
honestly are these guys at GM clowns or what?? guaranteed if they bring these cars here they will rig them NOT to get good MPG. They will put some inefficient crap in them, like a corvette engine, which will lower economy.
maybe if they paid attention the gas prices and the economy, two things in the news, and realized that nicer cars sell more than ugly pieces of crap they might actually be a compelling company?
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ug 12:43PM (7/31/2007)
I thought Bob Lutz just recently said angrily "I don't owe you anything!" in relation to bringing the triplets to the US??
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Blake 12:44PM (7/31/2007)
Tell me I can preorder the trax with a diesel and you'll have my wallet out so fast your head will spin.
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MikeW 1:01PM (7/31/2007)
Where is the 6 speed automatic for the cobalt/G5/ION?
same with the HHR? or even the Impala?
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AlexP 12:49PM (7/31/2007)
My bet is that only two of them will be made, the two being the Groove and Beat, the Trax is just too... Deviant and screams Aztek to me.
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Schmeltz 4:08PM (7/31/2007)
ug:
Bob Lutz was referring to not oweing anyone explanations or discussion about future product--which he doesn't. In fact it shocks me that GM is so open about their products as they are on their Fastlane blog. Show me another Company that does that. Does Toyota's CEO come out and talk openly on a blog about their products? Does Honda? Does ANY other Auto Company do that? Moreover, GM even posts the bashing comments too, (minus any with personal attacks or profanity of course). Again, show me another Company that does that.
As for these Mini-cars, I think there will be a market for them, but I think when PHEV's are offered, cars such as these will take major sales hits. Why buy tiny when you can buy average size, and get double the efficiency or more?
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Bob L. 1:56PM (7/31/2007)
I'll take a Beat and Groove with a diesel please!
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Don 5:37PM (7/31/2007)
The Aveo is Daewoo junk...GM's infusion of $6 billion dollars cash better produce something far better.
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Jim 7:24AM (8/01/2007)
Gosh, next thing you know, GM will be consdiering installing radial tires. Come on, GM, it's the 70's happening all over again, with small imports years ahead and rolling in the sales, and the American comanies sitting and thinking about doing something.
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Dave 8:13AM (8/01/2007)
Toyota built the Tercel - it flopped.
Toyota built the Echo - it flopped.
Toyota builds the Yaris - its sales are unimpressive.
The only profitable minicar in the USA is the Fit. And thats only because Honda moved the Civic so far upmarket that they created a huge hole at the bottom of their range.
GM is right to tread lightly.
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Rick Lyon 9:57AM (8/01/2007)
@14-
My second car was a Tercel, great little car. Japanese cars were still taboo then, doesn't count.
The Echo is hideous, big or small, it's ugly & won't sell
The Yaris may not be impressive but I see a lot of them around Orlando.
The Fit may benefit from the Civic's pricem but not based directly on it.
The Aveo is everywhere. That Suzuki one is pretty common, the Mini is everywhere, and Kia and Hyundai are doing well with their little guys.
Small+Quality+excellent MPG with decent performance=success in the US.
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Rick Lyon 6:56PM (8/01/2007)
@14-
My second car was a Tercel, great little car. Japanese cars were still taboo then, doesn't count.
The Echo is hideous, big or small, it's ugly & won't sell
The Yaris may not be impressive but I see a lot of them around Orlando.
The Fit may benefit from the Civic's pricem but not based directly on it.
The Aveo is everywhere. That Suzuki one is pretty common, the Mini is everywhere, and Kia and Hyundai are doing well with their little guys.
Small+Quality+excellent MPG with decent performance=success in the US.
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Dave 10:14AM (8/01/2007)
16-
The Tercel was produced and sold in the USA until 1999. Were Japanese cars taboo in 1999?
The Echo didnt sell for the same reason the Tercel didnt - for $500 more, you could buy a Corolla.
The Aveo is a decent car and it fills the niche for GM. Spreading R&D and crash testing costs across multiple small cars is unlikely to be worth the effort.
Kia and Hyundai are doing everything they can to move away from small cars because there is very little profit in them.
BTW - I drive a Miata - Small cars have their place, but in the USA its primarily as toys.
Until NYC or LA starts offering cheap parking to subcompacts, the market for them will be quite small.
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Dsuupr 12:17PM (8/01/2007)
GM needs to do these cars for PR reasons. Who cares if they make a dime.
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Joe 12:43PM (8/01/2007)
The Tercel and the Echo were not built in the US. They were all built in Japan.
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PapaWhiskey 12:40PM (8/01/2007)
14 - I'm not sure what dreamworld you're living in, but Toyota is trading the #1 sales position with GM not by building SUV's. They got there by building fuel efficient, reliable cars. Something Bobnoxious Lutz can't seem to comprehend. His attitude that "he doesn't owe us anything" is right....that's if he doesn't want us to buy his cars.
The arrogant attitude of the big three in trying to dictate what Americans will drive rather than actually building what the customer wants, has rewarded them with loss of market share, and that's what they deserve.
Small cars are popular in every country in the world except the USA. Fuel prices may decline for now, but inevitably they will be back up again, and mainstream PHEV's are a long way off.
I've purchased three new Chevy's in my lifetime, so I am not a GM hater. But GM is losing money because they simply don't get it, and I have no simpathy for them.
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