The Auto Writer

Introduced in October 2008 as the Daewoo Lacetti Premiere, the Chevy Cruze is now on sale in China as well as in Europe and will soon go on sale in Australia as the Holden Cruze. Production for North America will take place at GM's Lordstown, Ohio factory and is set to begin in April 2010.

Some Good News For GM

For all the bad news coming out of Detroit regarding the restructuring of General Motors you’d think that good news is hard to come by. True, its North American operations is in shambles, but out of the ashes GM may emerge smaller, but with more relevant models going forward.

The Chevy Volt has been getting a lot of attention, perhaps much more so than it should. After all, with a sticker price approaching $40,000 the electric Volt won’t be much of a volume seller even with a $7500 federal tax credit on the hood. Instead, its platform mate — the Chevy Cruze — is likely to become one of the top selling models across GM’s brand network, a vehicle that is already being sold in several markets though its North American introduction is still about a year away.

South Korea, China, Europe and Australia

Last fall, the Daewoo Lacetti Premiere rolled out, a Cruze with another name. Produced in South Korea, GM Daewoo is building the car for several markets including China and for GM Europe.

In April, the Cruze went on sale in China, selling 3,739 copies representing its part of a huge sales increase for GM’s China business during that month. Indeed, sales in China rose by 50% while declining by more than 30% in the US.

No Opel or Vauxhall Models

GM is looking to sell its Opel unit (perhaps including Vauxhall with that deal) which won’t have any effect on Cruze sales given that GM Europe is selling the model through Chevrolet only.  Should Fiat or Magna International end up purchasing Opel, GM could find itself competing against its former brand, but the five passenger, 40 mpg Cruze would be the newest model and presumbably the most fuel efficient whether purchased with a gasoline or diesel engine.

It isn’t likely that GM will face liquidation, given the automaker’s impact on the U.S. economy, but bankruptcy restructuring remains a possibility.  Cars like the Cruze will represent the backbone of GM going forward, highly fuel efficient models that will be sold across many different markets.

Related Reading — China Is Good To The Chevy Cruze

Photo Credit: GM Corp.