President Barack Obama is heavily pushing the Detroit automakers to switch from larger trucks and SUVs to smaller cars and crossovers, but General Motors’ financial troubles could be putting the brakes on the company’s next-generation small car.
Ford is already on track to sell the Fiesta sub-compact here next year with Chrysler likely to begin marketing Fiat’s in America by the end of next year, but GM’s next-generation small car will be delayed until at least 2011.
According to Reuters, GM’s financial woes have struck its Korean Daewoon division, delaying the next Chevrolet Aveo by several months. The next-generation Aveo was originally scheduled to hit the U.S. market in April 2010, but that launch date has now been moved back to at least January 2011.
The news is not good for Chevrolet dealers as it will leave them without a truly competitive small car for another two years. The Aveo was redesigned for the 2009 model year, but still leaves much to be desired — both in quality and driving dynamics. Other cars on the market already offer higher levels of refinement for the same price, with Ford’s forthcoming Fiesta expected to set the bar even higher.
