• Sep 16, 2008
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.



[Source: IHT]


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  • 51 Comments
      • 6 Years Ago
      I have to say I am glad that they will price the Cruze close to $20K because this will only mean that GM will finally shoot themselves not in the leg but in the head. No sane person would pay that much for a domestic car and we all know the BUILD QUALITY of these cars, not to mention the DEPRECIATION and auto technology that have been present for years in the rest of the world. The hell with GM and the rest of them domestics. By then, Tata would be selling in the US. I would prefer to support an Indian company that knows what they are doing rather than a domestic company that have no idea what they are doing. No I am not Indian.
        • 6 Years Ago
        You are obviously a total moron, totally removed from reality. You think a new vehicle from India would 'automatically' be superior to GM?

        Quit smoking whatever you are smoking, because your brain is dysfunctional.

        I don't really understand why people would assume that the domestic OEM's cannot improve and bypass their competition - Honda (class action lawsuits up the wazoo for transmission meltdowns in Odyssey and V6 Accords) and Toyota (see the review of the Camry) with quality problems continually rearing up, along with diminishing quality - its time you woke up.

        GM has exceptional market acceptance in the rest of the world - is the rest of the world crazy, or do they not have such US media driven misperceptions on what GM can and cannot do. People who believe that Consumer Reports is the gospel are insane. See the new results in JD Powers - not just in initial quality, but in long term quality, Honda and especially Toyota are falling fast. Grow up!
        • 6 Years Ago
        You really need to learn the difference between depreciation from MSRP and actual transaction price. Once you have grasped this important financial concept, you will then be able to understand that while the Camry has a lower 'depreciation' than the Impala, the Impala is actually less expensive to own for five years. Given that GM (all domestics, actually) have an average transaction price than imports do, it creates a false impression of how much of the vehicles' value has been lost. If you pay $3000 less for a GM product than you would for a competing Toyota, the Toyota had better be worth $3000 more 2 - 3 years later.

        What GM is trying to do, and quite successfully I might add with the Malibu, is increase the average transaction price on their vehicles to be closer to MSRP. Not only will this increase revenue, but for those too stupid to grasp the concept of actual out pocket expenses, it will eventually eradicate the misinformation about what it actually costs to own a GM vehicle.
        • 6 Years Ago
        Let me tell you something, The Truth About Cars said that the only reason people buy Cobalts is because they do not want to be seen in a used car. They see no merit in that car, it's cheap, ugly, poor MPG, not reliable. Now if that wasn't bad enough, just look at the competition, you can get some of the best cars available for sale in USA (World) at that price point.
      • 6 Years Ago
      The real story is this indicates honda plans to raise there prices too.

      Do you idiots really think these guys don't all talk to each other?

      What slots below the cruze then, big dropoff down to the aveo. Is this where the beat fits in? If so, this also means the beat is going to suck. Why? The cruze sucks. Why would you make your cheap car better than the car above it?

      Sorry the cruze does stink. Its a hyundai with a chevy nose. GM is notorious for not caring about this price point. There isn't much profit in them, they worry about the $35,000 range much more. The cruze is just something to keep those union boys busy with between liquid lunches. Yes they do drink on the job, I know. I've got several relatives who work in various plants. They also do some coke, but thats a whole 'nuther subject.
        • 6 Years Ago
        Hey you know what, more often than not I completely agree with your comments. But here, what makes you think that Cruze does, as you so eloquently put it, "suck"?

        Yes, I understand they had Daewoo R&D this thing to a bone minimum cost, but shouldn't we reserve judgment until reviews? And I don't mean reviews of American automotive press because they all love to kiss hairy butts of domestics.

        As for Volt, I see where you're coming from, but I actually think it'll be a better car than you think. GM isn't that goofy to offer $15k worth of car for $40k. In my view, if I were GM, I would make sure that this car would be a halo product showcasing what GM can do.
      • 6 Years Ago
      Right now, GM offers only low-end small cars. If they sell a better small car, then they CAN command a better price for it. They may sell both the Cobalt and the Cruze for a while at different price points. Don't forget, the small car market is the one segment that is expanding. GM doesn't need more SUV choices, they need more small car choices.

      Also, let's not compare what a car from one company is going to charge when it comes out next year to what another car costs now. ALL the car makers are going to raise their prices.

      • 6 Years Ago
      You could always provide options. I don't think a NAV system costs $2100, but that seems to be the going rate. Heated/cooled seats for $600... and pretty soon you start talking about real money. The can advertise a low starting MSRP and up the ASP by offering options. Hopefully GM finally gets that some people don't want OnStar for nav and would rather have a nice LCD screen.
      • 6 Years Ago
      I suppose GM didnt learn there lesson with the saturn astra, good car, bad interior, way overpriced..
      But hey GM needs to charge more for less, and yet still have iffy resale value compared to there competitors, so 2 years after this thing comes out in april 2010, Gm will say hey we f*cked up and lower its price, always 2 steps behind the times Gm !!
      But hey perhaps they will get 22k for there small cars 32k for a loaded malibu and 42k for a loaded impala does that sound good to you GM ???
      I see yet another gov bailout in the making cause GM could not respond to the current or near future market conditions !
      • 6 Years Ago
      If this is a nicer/better car than the Cobalt, then it makes sense that it would cost more to make, and thus be sold for more. But it sounds like for as high as the price is, you'd be as well off just getting a Malibu.
      • 6 Years Ago
      Well this isn't going to help GM's bottom line
      • 6 Years Ago
      This will be my next car.
      • 6 Years Ago
      There's no way this is a hit at $20k. Just too many other options for that price. The economy is in the tank and people are buying more used cars and smaller more effecicent cars. At $20k, this will only appeal to diehard domestic fans, just like the Cobalt.
      • 6 Years Ago
      Since most of this is just speculative, I'll wait till GM releases its pricing for actual judgment.
      • 6 Years Ago
      Oh and I love how read end looks exactly like 09 BMW 7er in
      • 6 Years Ago
      The Saturn Astra--a good car--is already failing in the U.S. because as good as it is, the Astra is too expensive to compete favorably with the Civic, Corolla, Mazda 3, Sentra, etc.

      GM can set whatever price it chooses for the Cruze, and buyer can choose to ignore it, too!
        • 6 Years Ago
        It doesn't help that they stuck it with orphaned nameplate -Saturn-. As a Pontiac it just might have sold.
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