Chevy's Below-Average Aveo

True, it's cheap, but the Aveo has poor safety ratings, so-so fuel economy for its size, and a wimpy engine

by Thane Peterson

Editor's Rating:

The Good: Low price, improved interior and styling

The Bad: Safety concerns, relatively poor mileage, sluggish acceleration

The Bottom Line: Comparison shop before buying

Reader Reviews

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Up Front

With gasoline prices always threatening to soar, subcompact cars are popular this year. But the domestic automakers haven't been doing well in the segment, and the redesigned 2007 Chevrolet Aveo is a good example of why.

In the first 11 months of this year, Aveo sales have fallen 16.2%, to 54,252 units. Sales were off 9.2%, to 3,285 in November, even though General Motors (GM) was offering a $500 discount on the model's already low price (good through New Year's Day).

The reason is that better Japanese models have hit the market. Honda (HMC) has sold 25,702 Fits (see BusinessWeek.com, 8/21/06, "Nice Fit") so far this year; Toyota (TM) sold 64,082 Yarises (see BusinessWeek.com, 6/14/06, "The Judgment of Yaris"); and Nissan sold 17,897 Versas. Backed by heavy advertising, the Yaris has already moved ahead of the Aveo as the best-seller in the segment.

Korean-made subcompacts are wilting under the competitive pressure, too. Sales of the Hyundai Accent (see BusinessWeek.com, 11/20/06, "Hyundai's Poor Accent") were off 18.7% through November, to 31,976, and the Kia Rio's were off 7.2% to 25,545.

One problem is that the Aveo's redesign for '07 was only skin-deep. The car was made longer, the interior materials upgraded, and the exterior styling redone, but the engine size, interior space, and wheelbase remain the same as in the previous version. The only power plant is a 1.6-liter, four-cylinder engine that generates 103 horsepower.

I tested the Aveo sedan, a front-wheel-drive, four-door subcompact that comes in two trim levels, the LS starting at $12,075 and the top-of-the-line LT starting at $14,075. The LS is bare-bones, with standard air-conditioning and not much else. You can add a CD player with MP3 capability, a sunroof ($725), cruise control with remote keyless entry ($425), and power windows ($295).

The LT comes with these features as standard equipment, as well as a nicer interior, steering-wheel-mounted controls, and decent-looking cloth upholstery or optional "leatherette" seats ($295). However, you still have to pay an extra $850 for an automatic transmission and $400 for antilock brakes.

There's also a hatchback version of the Aveo, the stripped-down version of which is incredibly cheap. It starts at $9,995 but has virtually nothing on it and no options. Even air-conditioning is only available as a dealer-installed option. There's also an LS version of the hatchback, starting at $12,425, which is similarly equipped to the LS sedan. You can add options to it at the same prices as for the LS sedan.

The Aveo's biggest negative is doubts about its safety. Side curtain and rear-seat air bags—important safety features you should have in a small car like this—aren't available, even as an option. Neither are stability and traction control, and, as I mentioned above, antilock brakes cost $400 extra.

The car's structural soundness also is inadequate, especially in side- and rear-impact collisions. On Dec. 19 the Insurance Institute for Highway Safety (IIHS) announced its first crash tests of subcompacts, and the Aveo earned an "Acceptable" rating in frontal collisions, but its rating dropped to "Marginal" in side collisions and "Poor" in rear-enders.