GM Gives Retailers a Sales “Cease and Desist” for New Chevy Aveo

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Having already faced massive recalls in the past few weeks, General Motors looks to be facing yet another. (Photo: Alexandra Straub, American Auto Press)

A "stop delivery" was issued to dealers, but the reason for the stoppage hasnt been clearly disclosed by GM. (Photo: Alexandra Straub, American Auto Press)

GM is hoping for big things from the Aveo, with projected sales of 50,000 to 70,000 units a year, grabbing back market share from the likes of Hyundai, Kia and Toyota. (Photo: Alexandra Straub, American Auto Press)

Chevrolet currently enjoys the highest retention rate of any nameplate, but reliability problems with their entry-level cars could easily mar that status. (Photo: Alexandra Straub, American Auto Press)

Problem with Aveo Latest for Recall Plagued General Motors

General Motors has been plagued with recalls in recent weeks, calling back more than 2.5 million vehicles.

That trend doesnt seem to be stopping anytime soon. While the automaker isnt stating what exactly was wrong with its entry-level Aveo, a spokesperson commented that it recently told its retailers to cease all sales over a three day period “because of certain concerns that were triggered by a review of field data.” The automakers investigation confirmed that “there were no vehicle conditions to be concerned about,” so GM lifted the stop delivery order yesterday afternoon.

No doubt GM is being just as vague with its Aveo owners, which are incidentally forming into a significantly large group. The company announced that 1,100 were sold in Canada and 1,559 in the U.S. during the month of January alone, after three months of availability.

When GM announced the “stop delivery” on the Aveo, U.S. spokesman Jim Schell stated, “Obviously, the dealers are honoring that.” He added, “Any more information would be partial.” Again, not much information to go on.

GM is hoping for a big consumer response from this little car, with sales targeting between 50,000 and 70,000 Aveos annually, mostly due to its $9,455 base price point.

The Aveos subcompact rivals, the Hyundai Accent, Kia Rio and Toyota Echo, havent faced such controversy, which wont help the worlds number one automaker to bridge the gap in sales.

Chevrolet, however, is high up the charts when it comes to reliability, at least when referring to the J. D. Powers and Associates 2003 Vehicle Dependability Study (VDS). At 17th place out of 37 nameplates Chevy shows much better reliability than Hyundai, in the 31st position and Kia at dead last.

But thats not telling the whole story. The Aveo, along with its larger Optra and Epica siblings, are spawned from GMs new GM Daewoo Automotive & Technology Co. (GMDAT) joint venture, the result of a purchase that saw the General buy up Daewoos North Korean assets. Being that these models are still sold in non-North American markets under the Daewoo badge, their reliability should be compared to Daewoo, not Chevrolet. As the fog begins to clear the same J. D. Powers survey that shows Chevy at position 17, places the now defunct U.S. Daewoo at a somewhat miserable 35, just two positions shy of last place.

The success of GMs Daewoo built entry cars is critical to its brand, as retention rates are largely based on customers satisfaction with their cars and dealership experiences. Chevrolet currently enjoys the highest retention rate of any nameplate, mostly due to its truck and SUV line.