REPORT: Chevrolet Aveo replacement postponed until 2011
According to Reuters, Chevrolet's Aveo replacement has been postponed until January 2011 due to the well-publicized financial troubles at General Motors and its Korean subsidiary, Daewoo. Previously, the Aveo's replacement, codenamed T300, had been expected to bow in April of 2010.
Over the first four months of 2009, Daewoo has reported a whopping 44.5-percent decline in total vehicle sales, which comes as particularly bad news for The General since the Korean automaker accounts for a quarter of GM's total production. Much of that slumping production is being lost to rivals like Hyundai and Kia in oh-so-important emerging market of China, where Daewoo's sales dropped by 3.2-percent even in the face of an expanding market.
In effort to keep the doors open in the face of such heavy losses, GM Daewoo is reportedly seeking additional loans from the Korea Development Bank after running through all $2 billion of its available credit lines. We hope they work it out... suffice it to say that the Aveo's replacement can't come soon enough.
[Source: Reuters]
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Reader Comments (Page 1 of 2)
Joe K. 12:09PM (5/23/2009)
Well with the current one selling so well, why replace it?
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Dave 12:47PM (5/23/2009)
This makes sense, actually.
If they replace it with a better model, it will compete directly against the Cobalt.
When Chevy introduces the Cruze, which is certainly upmarket of the Cobalt, the replacement for the Aveo will also replace the Cobalt.
In addition, they probably have enough inventory to last until 2011.
letstakeawalk 2:47PM (5/23/2009)
I think the supply of Pontiac G3s sitting around could certainly satisfy any *ahem* demand that might arise.
http://www.autoblog.com/2009/04/14/report-gm-already-has-nearly-two-year-supply-of-pontiac-g3-at-c/
jpm100 12:14PM (5/23/2009)
With only starting to break away from $2 because of the start of the holiday/vacation season, its not a shock sales suck. Probably better to retool for when the MPG standards start hitting hard.
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Judy Zik 12:16PM (5/23/2009)
GM has almost enough inventory of Aveos and G3s to get it through until then without building any more which might have something to do with this. Still the wrong move though. They desperately need a new product to replace this little slug. The last thing GM should be doing right now is delaying ANY new products.
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hypermiler 1:00PM (5/23/2009)
@ Judy Zik
> The last thing GM should be doing right now is delaying ANY new products.
GM delayed all its product with the exception of Volt due to lack of funding. Likewise Daewoo is forced to delay, since GM management running Daewoo blew $2 billion on forex hedging and has run out of cash to run Daewoo, even though Daewoo as an automaker made $200 million net profit as an automaker in the middle of financial meltdown.
MoonRover 12:19PM (5/23/2009)
I read in another article that it all depended on the economy as to the into time.
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Tomac 12:28PM (5/23/2009)
Wow... Daewoo is 1/4 of GM total production? That number really surprised me.
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hypermiler 12:55PM (5/23/2009)
> Wow... Daewoo is 1/4 of GM total production? That number really surprised me.
Daewoo produced about 1.9 million of 8.3 million vehicles that GM sold last year. This is why GM would rather dump Opel and keep Daewoo.
Unfortunately, Korean government wants to take back control of Daewoo from GM as the condition of bail-out, or the speedy Congressional passing of KORUS FTA which would offer an unrestricted acess to US auto market.
TriShield 1:28PM (5/23/2009)
What makes anyone here believe the next one would be better than the current one?
Daewoo has been supplying GM with subpar small cars ever since GM bought it in bankruptcy.
The Chevrolet Cruze is a Daewoo too, and it's expected to "save" GM in the US? If that's the case GM is even more screwed than we realized.
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Iwa 1:56PM (5/23/2009)
The US Cruze will be manufactured in the US at the Lordstown, OH plant.
jgp 3:20PM (5/23/2009)
And your passionate hatred for Koreans is well known. Please leave us alone and go back to your Klan meetings.
Judy Zik 3:31PM (5/23/2009)
GM would not rely on Daewoo alone for such an important vehicle. Delta II was designed by Opel. Design work on the Cruze itself was farmed out to various departments worldwide. The North American Cruze will be built in Ohio. This is not a Korean rebadge.
JOe 3:42AM (5/24/2009)
Actually, Judy the Cruze is mostly designed by GM Daewoo's automotive center in Incheon South Korea. Opel helped with bits and pieces, but most work was done by the S.Korean subsidiary. you should do more research before you claim your expertise on such a topic.
Lee 1:20PM (5/23/2009)
Oh yes, many a Daewoo is rebadged and sold as a Holden too. Tragically, they rebadge a Holden Statesman as a Daewoo. Up is Down.
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mikecanada 5:29PM (5/23/2009)
It seems like the bad news just keeps flowing in. Sometimes I think I should just not read the papers and blogs anymore!
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Smegley 6:07PM (5/23/2009)
Get used to it, GM. All over the world people are learning that GM is now just a pathetic extention of the obama administration, and they are voting with their wallets to not support it.
4 months ago I had 3 GM cars at the top of my shopping list for next year when I plan to buy - the Camaro, CTS, and the next LaCrosse. Now I simply will not consider a GM product of any kind. Eat me, Obama Motors. You bastards can tax the crap out of me, but you can't force me to buy your government automotive garbage.
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Big Mola 6:38PM (5/23/2009)
Cut off your nose to spite your face--Go for it!
SaintStryfe 12:36AM (5/25/2009)
you are a small and pathetic person.
Richard S. 6:17PM (5/23/2009)
Daewoo slumping in China? China's small auto sales are rising due new incentives. GM is doing great with Buick and Wuling. Why the heck can't Daewoo compete in China when it faces Geely, Brilliance and BYD as competitors who are doing Ok.
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