GM going small in a small way

GM's head of the Aveo program is very happy with how the Aveo is selling. It's GM's smallest car, and the manufacturer just announced that it's bringing the five-door (the new name for hatchbacks) to America.

And that's fantastic... we love it.

But GM still is way behind Toyota and Honda in the American sub-compact market.

Why? Because it isn't making enough of them. There's only one plant that makes Aveos, and it makes 70,000 of them a year for sale in America. Every one of them sells, and at a profit.

But GM apparently is afraid to boost production because it just doesn't see a big American market for the cars. The idea is that GM can only make money off them if it keeps the price extremely low.

It does 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 car sales in America.

But the new Aveo looks manageably attractive, and though GM is 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. 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.