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Chevrolet to Invest $5B in New Small Car Family for Emerging Markets

Motor Trend logo Motor Trend 7/28/2015 Kelly Pleskot

Chevrolet will create an all-new lineup of vehicles tailored to customers in emerging markets, the automaker announced today. As part of the plan, Chevrolet is spending $5 billion and is partnering with SAIC Motor, a Chinese state-owned automaker.

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By creating a new vehicle family, Chevrolet says it will be substantially more competitive and profitable in these markets. The new lineup will replace several existing small cars, and the vehicles will be manufactured and sold in Brazil, China, India, Mexico, and other global markets. Production on the first batch of cars will begin in 2019, and the program is expected to grow to more than 2 million vehicles a year. MotorTrend Image© Provided by MotorTrend MotorTrend Image

The strategy represents a huge shift from how Western automakers typically approach making vehicles for emerging markets, Automotive News reports. GM doesn't seem to be focused on offering bare-bones, no-frills cars for these consumers, but instead is looking to elevate its offerings.

“This new vehicle family will feature advanced customer-facing technologies focused on connectivity, safety and fuel efficiency delivered at a compelling value,” said Mark Reuss, GM's global product development boss, in a release. “It will be a combination of content and value not offered previously by any automaker in these markets that are poised for growth.”

Chevrolet says that producing the car parts locally will drive significant savings. Also likely to help on this front is GM's partnership with SAIC Motor, which should further reduce the cost of the vehicles. Both companies have agreed to jointly develop the vehicle lineup's core architecture and engine. MotorTrend Image© Provided by MotorTrend MotorTrend Image

Chevrolet to Invest $5B in New Small Car Family for Emerging Markets

There are no plans to export the vehicles to developed markets like the U.S., Chevrolet said.

Source: General Motors, Automotive News (Subscription required)

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