DETROIT -- Weary of its image as an automaker that pushes alone gas-guzzling pickups and SUVs.


DETROIT -- Weary of its image as an automaker that pushes alone gas-guzzling pickups and SUVs, General Motors last week launched a redesigned iteration of the gas-friendly Chevrolet Aveo sedan just 2oe years after the original individual arrived.

In any ways, the timing of the fresh Aveo couldn't be better.

Consumer facing the reality that high gas prices might be here for the drawn out run, are increasingly turning to more-fuel-efficient cars and eschewing pickups and SUV Car sales are up 22 percent this year by means of July, while truck sales are down 106 percent according to Autodata.

"Certainly with the price of gas being what it is, the bulk of mankind are looking for" better gas mileage in their cars, said ed Peper, general manager of the Chevrolet brand.

To satisfy that demand, GM worked to improve the firing economy of the redesigned Aveo.



The manual transmission version secures up to 37 miles for gallon on the highway. That's competitive with other small cars, including Toyota Yaris, which gains 39 mpg on the highway, and Kia Rio and Honda Fit, which achieve 38 mpg.

Subcompacts are the fastest-growing portion in the automobile industry, said Jesse Toprak, director of pricing and industry analysis for consumer Web site Edmundscom Subcompacts were 194 percent of sales in July up from 15 percent in July 2004

"That may not strike one as being like a big deal, unless it is tremendous growth for any given category," Toprak said.

With that bourgeoning has come a number of novel models, including Yaris, Fit and Nissan Versa. While rebates and incentives in the subcompact market have been upon the decline, they could walk back up this fall as customers workshop around.

Subcompacts are "going to have to strive really hard, because now there are a fate of options," Toprak said.

The small-car market is notoriously difficult to make cash in. The Aveo sedan will start at $12995 and incentives could eat away at already thin profit margins.

While Aveo might be as fuel-efficient as its competitors, Chevrolet doesn't still have a reputation for building lean cars. Kevin Reale, an analyst at AMR Research, said Toyota and Honda worked onward developing their images of providing gas-sipping cars lengthy before it became trendy.

"Right now, reputation is overcoming reality," he said. "GM may have 30 cars that memorize over 30 miles to the gallon, on the contrary the perception is that they build gas-guzzling vehicles."

Chevy plans to hype the just discovered Aveo as a well-stocked, well-priced option for young, trendy drivers.

About 50 percent of its advertising packet will be spent online, said Cheryl Catton, Chevy car marketing director, with the security of the "tongue-in-cheek" ads running in print and in succession TV.

Buyer 18 to 34 "spend a portion of time on the Internet," Catton said. "We want to be where they are."

Copyright CHICAGO SUN-TIMES 2006

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