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

The Aveo's subcompact rivals, the Hyundai Accent, Kia Rio and Toyota Echo, haven't faced such controversy, which won't help the world's number one automaker to bridge the

GM is hoping for big things from the Aveo, with projected Canadian sales of 12,000 for 2004 and U.S. 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, Canadian Auto Press)

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 that's not telling the whole story. The Aveo, along with its larger Optra and Epica siblings, are spawned from GM's new GM Daewoo Automotive & Technology Co. (GMDAT) joint venture, the result of a purchase that saw the General buy up Daewoo's

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, Canadian Auto Press)

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 GM's 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.