Chevy Cruze Pricing; "Likely will sticker for a few thousand more than the Cobalt"

[Perian]

Link: http://www.autonews.com/apps/pbcs.dl...807210349/1197

Interesting quote buried in this article...


If gasoline prices continue to rise, GM's leaders believe it can command higher prices for its cars.

"At historically $6 a gallon, now $9 or $10 a gallon in Europe, the European equivalent to a Ford Focus, Volkswagen Jetta or Chevrolet Cobalt carries an (average transaction price) of $35,000, $36,000, $37,000," says Bob Lutz, GM's vice chairman of product development.

Lutz says the way to re-enter the segment is with superior product. For example, GM's Cobalt replacement, the Cruze, likely will sticker for a few thousand dollars more than the current Cobalt.

[Perian]

So this begs the question:

If the Cruze will be premium priced, how (and with what), will GM replace the current price point of the Cobalt?

[civilzues]

so the chevy aveo will also increas in price making room for the beat? This would allow them to make some money on these small cars now.

[dindak]

You just can't price above Corolla/Civic with a new model name with zero street cred.

GM should be careful here.

[Masospaghetti]

They said the same thing when the Cobalt was released...that it was the "premium compact" that would have higher transaction prices.

[poncho1982]

Meh, I'd rather get a USED Cobalt, if thats the case.

[Z28x]

Don't forget the average 2008 Malibu sells for $5000 more than the 2007

The average Honda Civic sells for $5000-$6000 more than the Cobalt

[Grymm]

GM is made up of a bunch of morons.

Raise prices and GM is more dead than it already is and will have no chance of survival. Higher prices will give China the opportunity it needs to enter into the market WITH consumer support.

As it stands Kia is showing more sales.

Stupid, just plain stupid

[camaro_freak]

gee Bob look how well that train of thought worked with Saturn.

Do NOT raise the price of this car unless you plan on both the Aveo and Beat cars arriving on us shores at the same time as the Cruze launch...

Really really dumb move

[jkennedy293]

Originally Posted by Grymm

GM is made up of a bunch of morons.

Raise prices and GM is more dead than it already is and will have no chance of survival. Higher prices will give China the opportunity it needs to enter into the market WITH consumer support.

As it stands Kia is showing more sales.

Stupid, just plain stupid

Raising prices hasn't hurt Malibu or CTS sales. That being said, the Cruze better be a far better product than the Cobalt, and by what we have seen so far from the spy photos, it will be.

[EldoFan]

Originally Posted by Grymm

GM is made up of a bunch of morons.

Raise prices and GM is more dead than it already is and will have no chance of survival. Higher prices will give China the opportunity it needs to enter into the market WITH consumer support.

As it stands Kia is showing more sales.

Stupid, just plain stupid

Higher prices aren't going to do squat for China. They're still stuck in the stone age, ripping off established designs and scratching their heads trying to figure out how to make a safe vehicle (at least by our standards).

If the interior of the Cruze lives up to the hype the same way the CTS' did.....and it packs a 4 banger which is capable of hitting the magic 4-0 MPG, then the price will be justified.

[FenwickHockey65]

Few thousand...as in $16k? $17k?

[Whitesky]

If they were introducing an all-new Cobalt, wouldn't it automatically be priced higher than the current one anyway?

[windvale]

I've been looking at small cars recently and you won't touch a Corolla or Civic for less than 18K, which is like a 3K premium over a Cobalt.

With $4.00 gas, build a good compact car and people will pay the premium. GM is on the right track - just make sure that the Cruze is indeed a premium small car...

[BigAls87Z28]

Damn Lutz and his damn mouth...