banner The latest auto news, reviews, prices, product and vehicle releases. Auto News 5

Stay connected Subscribe to our RSS feed

Do not miss the latest Auto News !

Aug
14th

What is GM doing?

Stay connected Subscribe to our RSS feed
I'm fresh off the regional launch of the 2013 Chevrolet Spark. Although my thoughts on the car were generally positive, I found myself scratching my head wondering what the hell GM is doing to itself.

You see, the Spark has wedged itself at the bottom of Chevy's food chain where there was already very little room to spare. The challenge is many-fold where not only are there three models fighting for the same floor space and slice of the sales pie, but they are all new nameplates. I ask myself: "What is GM doing?"

2013 Chevrolet Spark front 3/4 view
2013 Chevrolet Spark (Photo: Mathieu St-Pierre)

Talk about an undertaking.

In many respects, dealers were already trying to explain the real differences between the $14,495 Sonic LS sedan and the $14,995 Cruze LS to consumers. Now comes a 5-door $13,495 Spark LS to complicate matters further. The price disparities between these cars -- not to mention the size, equipment and vocation -- are so narrow that I fail to see how it'll all work out.

GM reps, who are all too aware of what is going on, at the Spark's launch hinted that the lackluster sales of the Sonic sedan may call for the end of its existence on the Canadian market. The remaining 5-door's $15,495 asking price creates a larger, more "sellable" gap between the Spark and Sonic. The $14,995 Cruze LS remains an issue though...

My fear is that GM will be forced to increase the Cruze's entry-level price, possibly hurting the appeal of the best product Chevrolet's had in their portfolio for nearly three decades. In my opinion, I think the Sonic may be the lame duck and should be pulled altogether.

Once done, GM should introduce the incredibly enticing Cruze hatchback in NA, effectively replacing the Sonic; harsh to say perhaps, but no one will miss it. For the 2014 MY, Chevy should upgrade the Spark's 4-speed autobox and replace it with the Sonic's 6-speed unit and Bob will be their uncle. This is win-win.

What would Bob Lutz think? About Lutz: I'm almost done reading his book, Car Guys vs. Bean Counters, and will do a little write up on it shortly.

In this scenario, all bases are covered. A quirky, micro-subcompact car serves as the Chevy echelon's first step, and the two Cruze body styles cater to all manners of buyers looking for efficiency, economy, value, styling, and everything else under the sun. The only condition I can think of here is that the Cruze H/B would have to retail for the same price, or no more than $500 over the sedan.

GM dealers and marketing execs have a daunting task ahead of them with these three cars; how to clearly define the ins and outs of these like-minded cars will be tough.

Hosted by CifTech Hosting.