Chevy Cruze could be priced higher than rivals

Click above for a high-res gallery of the Chevy Cruze
Remember when we told you that GM plans to make more money off of its small cars by upping its prices? Well, as far as the Cruze is concerned, not only do they plan to charging substantially more than the outgoing Cobalt, they might demand more cash than a comparably equipped Corolla, Civic, or Focus. According to GM, that's because it needs to make more per car than Honda or Toyota.
With the average Civic rolling away for $19,184, GM doesn't have a lot of room to play before hitting the $20,000 ceiling. And if GM was to get an average price of $19,500 for the Cruze, that would be a $3,000 premium over the current (average) price for the Cobalt. That still gives no indication of how much money GM would actually be making on the car, though.
Design honcho Ed Welburn feels the car's styling and interior will justify the extra dosh, and said he believes "we have some very unique content and materials that are in the vehicle." Conviction is a good start, and if they can back it up the verdict might go their way. For that, we have to wait for the jury of consumers to decide.
Gallery: 2010 Chevy Cruze - live shots
Gallery: 2011 Chevy Cruze
[Source: IHT]











Reader Comments (Page 1 of 3)
Torrent 6:04PM (9/16/2008)
15K and it will sell well. 16K and people might look elsewhere. 17K and It's probably out of the question, and only committed people will get it. 18K- why not just get a Malibu? I like the Cruze, but it's hard to imagine a compact car over 18K.
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jte 6:11PM (9/16/2008)
Then how to you account for the Civic, a compact car, having an average price of $19,184?
jte 6:14PM (9/16/2008)
Then how do you account for the Civic, a compact car, averaging $19,184?
Torrent 6:23PM (9/16/2008)
Well if you haven't noticed, you get a lot of bang for your buck when you get a civic, and it's pretty large to be considered a compact car....
Dan 6:24PM (9/16/2008)
The outrageously overpriced Civic sells because the Honda brand name gives it an outrageously overpriced resale value to match.
Civic pricetag combined with Cobalt depreciation ain't gonna fly.
AZZO45b 6:26PM (9/16/2008)
because jte... Honda has proved to have a winner with the Civic Look at its resale value & build quality
Chevy has not (with its past compact cars)
Dave 7:04PM (9/16/2008)
If GM includes its six speed automatic, BAS hybrid system, and direct injection, $20,000 will be possible.
Its better looking than the Civic, Corolla, and Focus (not saying much, I know, we're talking about three very ugly cars these days).
The turbo 1.4 will provide plenty of oomph, and the BAS hybrid will compensate for any turbo lag while giving solid gas mileage.
No Welfare for GM 7:09PM (9/16/2008)
Torrent, you are right on the money.
To me this is simply unbelievable, this is beyond dumb. Over the last two days I actually thought that GM gained some brains, Volt and Cruze were supposed to be BIG game changers. And now comes this, does GM not learn, EVER, they just had exactly the same fiasco with Saturn Aura, just last week Bob Lutz himself said that Aura was priced too high.
Look I know that Aura offers more standard features and more luxury features (heated seats) but Civic and Corolla are THE names in the segment. You can not be pricier than them. Look I know fully well that there are people who will argue otherwise that is why I will give you one simple example.
Saturn Aura, a small car, that gets not that bad MPGs, this car is on sale during historical run up in gas prices, all car makers sell small cars like crazy, and yet Aura did not sell. We have a credit Crunch, meaning people now try to get smaller, cheaper cars, this is nearly perfect environment to sell a small car. And yet Aura does not sell in terms of units and it is a money losing vehicle for GM as a whole. Yes many say GM did not advertise enough, but even that does not justify being to pitiful. According to Wall Street Journal Aura is a complete bust for GM, more so than any other car simply because it is the kind of a car that is supposed to sell like crazy in this environment.
Why cant GM understand that Civic and Corolla are AUTHORITY, they are the BIG BOYS. You can not be price Cruze higher than those two simply because people gauge every car in the segment by those two cars. Yes I know Cruze may have more gizmos and all, but that does not matter. Aura proves that people will not pay more for a car that is not know to be a respectable player in the field, a field that has plenty to offer. Do you really think that people would choose Tundra over Silverado and F-150 if it had more features but also cost more? Look at Hyundai, they sell cars that cost less than competition and their cars are loaded, that is what makes them winners. People will not pay a premium for a small GM car simply because GM is not known to make good small cars, and the other two ARE known for making excellent small cars.
No matter what, GM needs to bring the price down, and for Cruze to REALLY compete, it needs to be priced below the competition and still offer way more features, this is what it takes to challenge the big boys.
Having said all that, I would also like to point out a far, FAR scarier issue for GM, Cruze will come out in 2010, a year later Honda will come out with new Civic, new Corolla will be out a year after that. Ayear after Cruze we will get a Civic that was conceived at the time of high gas prices, developed at the time of high gas prices and it will come out at the time of gas prices. This should tell you that Honda will, first of all give an extra effort to make Civic better, because the competition is heating up, and more importantly Honda will make sure that MPGs will be great.
Right now, everyone says that Cruze will get 40 MPG on highway, well Civic gets 36 MPGs on highway. How much do you think the new Civic will get? The Civic that was born, and developed with high gas prices in mind. It will easily get over 40, thus taking all advantage away from Cruze.
I want Cruze to be great, because I want to see healthy competition, for years Civic and Corolla have been dominating, and Toyota has been bringing its C- game to town. That is why I want someone to challenge these two, especially Corolla. What I am trying to say is that Cruze may look good on paper now, but in 2 years it will not be anything special, and that ultimately may kill it.
Bottom line, keep the car priced below Civic and Corolla, load it up with gizmos, and be ready for some major updated a YEAR into the launch to face the competition.
No Welfare for GM 7:16PM (9/16/2008)
AHHHHHHHHHh I meant ASTRA not Aura, ASTRA.
Lou 7:46PM (9/16/2008)
Torrent, great point! What is considered an average Civic and what will an average Cruze be? There is DX,LX,EX, EXL, SI in Civic. I can go right up the road and get an Si for $22K. What will the packages be for Cruze? That we do not know yet. But there better be either a content advantage or a price advantage or both. This car needs to change perceptions about GM as well as make them $$$. I am sure if they price it too high, the old rebates will be rolled on out!
tankd0g 8:20PM (9/16/2008)
Didn't you hear? GM is a game changer.
ASEVENSEE4 8:28PM (9/16/2008)
Too bad it will be at enterprises all over the US, further dragging the resale into the mud.
naggs 8:55PM (9/16/2008)
i think that this car is perfectly positioned to be a sales hit. americans are starting to look for nice cars that get good mileage. they have to start making a profit on an american made small car, it is going to become an increasing part of total sales.
the best selling vehicle in the US will not be a fullsize truck 10 years from now, it will be a practical, aerodynamic sedan that gets 40 mpg.
naggs 9:04PM (9/16/2008)
rental cars are all chrysler and toyota now
Judy Zik 10:53PM (9/16/2008)
As if any GM cars ever leave the lot for list price. This is marketing FUD. They will launch it at a high price point to make some money off the hype. Then when it dies down they will have the room to throw money on the hood and make people think they are getting a great deal.
Noz 12:08PM (9/17/2008)
Your first mistake is comparing a Chevy to a Honda. Honda has earned its place and price as a quality, reliable automaker. Chevy has not.
I like the Cruze look...it's clean..but what worries me about Chevy the most is CHEVY. They have made pieces of shyt for years...for years.
So what would possibly make me change this view so quickly so that I pay up to 20K of my hard earned money for a car made by a company up until recently was known purely for making huge, POS suvs that had substandard quality and abysmal reliability?
Torrent 3:55AM (9/17/2008)
well...... jte started it....
Paul 12:45PM (9/27/2008)
GM's plan is simple, if they replace the Cobalt, then it wil be expected to have a low price. they want to insert a new level to get to the new pricepoint. This happens in all avenues of business.
The problem is when people are shopping for price point they factor more into the price than just the sticker price and the gizmo's on board.
Look at the elantra, it has a given price, but it is also the biggest dimensionally in it's class and that helps too. IF GM ignores this and expects the buyer to just move up the price chain for a bigger car, they will fail. They need to have a good sized vehicle at the right price point. Features are options and all makers add the latest options that people who are willing to spend on to get the prices bumped up further.
the current smart shopper is looking at small cars that cost less (stripped down bare bones) as they are awaiting for future cars with better MPG to hit the street.
Cars cost way too much and GM has always pushed for higher prices. One reason some look at the imports and that is also how they managed to push leasing on alot of people as that would be the only way they could get the vehicle they wanted.
the current gas-tax has everyone evaluating their priorites.
Me myself, I like what Nissan and what they do with interiors.
Kumail891 6:06PM (9/16/2008)
after i read the article, i went looking for interior pics, how come there are none?
as for the price, i don't see people walking away from this because of the price.
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Blake Luttrell 6:11PM (9/16/2008)
http://www.leftlanenews.com/chevrolet-cruze.html