Small cars are popular not only with the young buyers from Generation Y but also with older Baby Boomers who are looking to downsize into more economical and fuel efficient transportation, says Ed Peper Jr., the general manager of General Motors’ Chevrolet Division.
Thus, GM is planning a two-pronged media blitz to help build demand for the new 2007 Chevrolet Aveo, which has become one of the pillars of the company’s small-car strategy. The new 2007 Aveo still rides on a 97.5-inch wheelbase that puts it well within the B-car segment, but the inside of the vehicles has been completely redesigned to make it more comfortable and neutralize the cheapness that has long surrounded the subcompact segment.
Standard features such as side-impact airbags, tilting headrests, woodgrain appearance trim, steering-wheel audio controls, a 60/40-split folding rear seat and an optional power sunroof give the car a lot of substance for a vehicle that will sell for under $12,500 in some cases, Peper said. In addition, the Aveo, which is built by GM’s Daewoo subsidiary in South Korea , also carries a five-year or 70,000-mile powertrain warranty.
GM expects the Aveo to be compared not only to other small Korean cars sold by Hyundai and Kia but also against Japanese models such as the Toyota Yaris, Nissan Versa, and Honda Fit.
Prices for the new Aveo sedan start at $12,395, which includes the destination charge of $565, and will top out at $13,925. Prices for the current Aveo, which will be carried over into 2007, start at $9995 for the five-door or hatchback model, Peper added. “It is an important member of Chevy’s small-car family.”
While GM has been criticized for focusing on trucks and sport-utility vehicles, Chevy’s small-car sales have climbed by 40 percent this year with the Aveo, Chevrolet Cobalt, and Chevrolet HHR all contributing to the success of the effort, Peper said.
By and large, however, the campaign to bolster small-car sales slipped under the radar while GM promoted its new full-size sport-utility vehicles. Consequently, the 2007 Aveo sedan will get own marketing campaign that will kick off next month.
Click here to find out more! “The target audience for the Aveo sedan has grown up with the Internet, and 75 percent of this audience spends at least two or more hours each day online. To reach this digital generation, we need to go where they are,” Peper said. Thus, roughly half of the ad money supporting the Aveo launch will be spent on an Internet campaign geared to 18- to 34-year old buyers, while about 35 percent will be spent on more traditional television advertising aimed at Baby Boomers, who also have demonstrated a distinct interest in the car.
Peper was proud of the fact the Aveo sedan has been completely redesigned - a mere 2-1/2 years after its introduction. GM’s relative success in the subcompact segment - where its market share has climbed to 40 percent, thanks to the success of the Aveo - has drawn in new competition from companies such as Toyota , Honda, and Nissan. All three Japanese automakers have introduced new products in the segment, GM officials said.