





GM currently owns about 13% of the small car market. With demand for small vehicles increasing with the price of black gold, GM is out to increase that market share. Nevertheless, even if it doesn't increase its share, it plans to make more money off of each small car sold. How? By raising the price, naturally.
The plan is simple: make better small cars, charge more for them. The upcoming Cruze could run you a few thousand more than the outgoing Cobalt, for instance. The test is to see whether cars like the Cruze will be worth the premium. GM Global Design Chief Ed Welburn said, "In North America, we never did a good small car." The General plans to bury that piece of its history... but it's going to charge you, the consumer, for the funeral.
The idea that GM can lasso the small car market while charging a premium, at the same time as slashes its marketing budget by $1.5 billion, takes some effort to swallow. One analyst said that demand for small cars will outstrip supply, so GM could get away with it. However, until we see proof of small GM cars that take bats to the established competition, we'll have to give this plan a "Hmmm."

Workers at GM's Lordstown, OH plant just got another shot of good news from the General: the next-gen compact car from Chevrolet will be built there. The Chevy Cruze will replace the Cobalt, which recently had a third shift added to its production, and will make its initial debut at the Paris Motor Show in October. Europeans will get the first shot at the new car with sales beginning in April of 2009. The U.S. won't get the car until the following year, as the Lordstown plant begins phasing out the Cobalt and ramping up production of the Cruze in June of 2010. Both cars will be built simultaneously for a short time, according to UAW Local 1714 President Dave Green, who represents the workers at the Lordstown assembly plant.
A look at recent spy shots has our interest piqued over the new small sedan. Styling looks to be worlds better than the just decent Cobalt and the promised forty miles per gallon sounds like just what the doctor ordered in the face of ever-increasing gas prices.

