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What is "wrong" with these new subcompacts?

8700 messages,  Last post on Dec 08, 2009 at 7:41 PM

You are in the Automotive News & Views Forum. Your Hosts are steve_ & claires

What is this discussion about? Nissan Versa, Toyota Yaris, Honda Fit, smart fortwo, MINI Cooper


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#8467 of 8700
Re: 2010 Yaris gets traction/electronic stability control? [bpizzuti] by ateixeira
Aug 05, 2009 (9:12 am)
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Replying to: bpizzuti (Aug 05, 2009 9:09 am)

That kind of volume brings economies of scale.
 
Plus they're built in Korea for probably not a whole lot of $$$.
#8468 of 8700
Re: 2010 Yaris gets traction/electronic stability control? [ateixeira] by tifighter
Aug 05, 2009 (9:54 am)
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Replying to: ateixeira (Aug 05, 2009 9:12 am)

You guys see the Top Gear segment a few weeks ago where they drive the Daewoo branded version of the Aveo? Not pretty...
#8469 of 8700
Re: 2010 Yaris gets traction/electronic stability control? [ateixeira] by bpizzuti
Aug 05, 2009 (10:01 am)
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Replying to: ateixeira (Aug 05, 2009 9:12 am)

Economies of scale still don't help if you're not selling them for enough. GM has never EVER made money off of anything smaller than a midsize. EVER. Sales or not.
#8470 of 8700
Re: 2010 Yaris gets traction/electronic stability control? [bpizzuti] by ateixeira
Aug 05, 2009 (10:30 am)
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Replying to: bpizzuti (Aug 05, 2009 10:01 am)

But that gets a bunch of people in the Chevy store, not just to buy, but every 3 months for oil changes, etc.
 
That can help them sell a Malibu or Tahoe later. It's hard to quantify but there is a value for that.
#8471 of 8700
Re: 2010 Yaris gets traction/electronic stability control? [ateixeira] by bpizzuti
Aug 05, 2009 (10:47 am)
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Replying to: ateixeira (Aug 05, 2009 10:30 am)

Very hard. Admittedly that makes money for the dealer, which isn't bad. But what if they come back and buy another sub or compact? What if they move up from a sub to a compact? GM still isn't making money. By the time they're ready for a Malibu or Tahoe (or more likely Traverse) they might be looking at a Fusion or Sonata instead. That's why it's so hard to quantify...it's questionable if it even exists.
 
Besides, wouldn't it be better to make money on Aveo and Cobalt AND make money when they move up to Malibu? If they don't, at least they already made something, right? But right now they aren't.
 
There's a reason they just went through bankruptcy you know.
#8472 of 8700
Re: 2010 Yaris gets traction/electronic stability control? [bpizzuti] by ateixeira
Aug 05, 2009 (11:34 am)
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Replying to: bpizzuti (Aug 05, 2009 10:47 am)

That's what Honda is doing with the Fit.
 
The real problem is GM just acquired Daewoo and is selling a re-treaded, dated Daewoo design as a Chevy. They were too focused on cost.
#8473 of 8700
Re: 2010 Yaris gets traction/electronic stability control? [ateixeira] by tifighter
Aug 05, 2009 (11:42 am)
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Replying to: ateixeira (Aug 05, 2009 11:34 am)

Funny enough, once you adjust for content, the Aveo really isn't that cheap relative to the competition. And the mileage is a disappointment. If you are going to bargain basement, I have no idea why someone would choose an Aveo over an Accent...
#8474 of 8700
One nice thing I'll say... by andre1969
Aug 05, 2009 (11:46 am)
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for the Aveo, is that if you blow the extra $395 or whatever for the leatherette, it actually dresses the car up pretty nicely. FWIW, I don't think the Aveo is a horrible little car...it's just that in this class, there's so much better out there, for not much more money.
 
I wonder though, what the average transaction price is for an Aveo? Even if the MSRP doesn't seem like much of a bargain, I wonder if out-the-door, the typical Aveo might cost a lot less than an equivalent Yaris, Accent, Versa, etc?
#8475 of 8700
Re: One nice thing I'll say... [andre1969] by ateixeira
Aug 05, 2009 (11:48 am)
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Replying to: andre1969 (Aug 05, 2009 11:46 am)

I bet you could get in a Sonata for not much more money than a loaded one.
#8476 of 8700
Re: One nice thing I'll say... [ateixeira] by andre1969
Aug 05, 2009 (11:57 am)
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Replying to: ateixeira (Aug 05, 2009 11:48 am)

Well, just for kicks I spec'ed one out on Edmunds. I picked the top trim level hatchback, threw in an automatic, sunroof, abs, and the leatherette, and got a TMV of around $16,500. Not exactly cheap. But I'm still wondering if they really go out the door for that price? Maybe I'm just suffering from sticker shock because I haven't bought a brand-new car in almost 10 years, but that just sounds like a lot of money for an entry-level subcompact!

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