Pint-Sized GM Cars a Possibility

Beat Photos

Once regarded as merely concept vehicles, the Beat, Groove and Trax (clockwise from bottom center) could be on schedule for production. (Photo: GM)

With an infusion of cash and a new directive, a sub-subcompact car with a Chevy badge could be built. (Photo: GM)

Only time (and peoples' interest) will tell if we North Americans will get these little cars. (Photo: GM)

General Motors showed off three different city cars (sub-subcompact models) atthis past New York International Auto Show. While it was claimed by product guru Bob Lutz that the vehicles were merely show pieces to gauge North American interest for micro-sized cars, it turns out that things could be a lot more serious than a trio of diminutive styling exercises. President and Chief Executive of GMDAT (GM’s Korean arm, the branch responsible for the concepts) Michael Grimaldi (previously President of GM Canada) told automotive magazine Autoweek that the reason why GM doesn’t currently sell a product like these vehicles is because there isn’t a market for them. He also said, “If there appears to be a shift and if we can make those vehicles economically, we can then determine if we should introduce these vehicles here.”

The three cars that were shown at the New York show are the Beat, Trax and Groove, and were based off of the Chevrolet Matiz, a platform developed by Daewoo prior to its takeover by General Motors. While the Matiz provided the underpinningsfor the design concepts, they were speculated to have different three-cylinder engines, different gearboxes and even all-wheel drive on the Trax.

What makes the possibility of a new city car for North America plausible is the fact that General Motors recently announced an investment of $6 billion, funds that have been earmarked towards three areas: research and development, the construction and expansion of new production facilities and new products. The latter has been disclosed as finance for both a city car (like the triplets) and a subcompact car, most likely the successor to the Aveo / Wave. GMDAT has also been relegated the task of designing GM’s global subcompact and compact automobiles for the future.

One of the biggest landmarks that will determine the feasibility of micro cars such as this, is how well the new smart fortwo will sell here in theUnited States as the brand prepares to make its big debut for model year 2008. If the reaction is positive, you can be sure that General Motors, as well as other manufacturers will be more inclined to bring over smaller vehicles. Another big factor is the price of gasoline. As refueling costs continue to rise, smaller and smaller vehicles will gain popularity.

Another important factor to figure into the equation is the cost of labor and assembly. As carmakers move production further East, such as the upcoming Dodge-Chery subcompact car and the forthcoming global Volkswagen vehicle that are slated to be produced in China, General Motors’ production facilities in Korea should help to provide affordable production of small vehicles. The latter two factors will play a big role in whether or not we’ll see sub-Aveo sized vehicles with GM branding.