Chevy Viva Poised To Battle Ford Fiesta

Ford has been making a lot of news this year in advance of next year's US roll out of the Ford Fiesta. The company has lined up one hundred consumers across the country to test the Fiesta, an unusual marketing strategy that the company hopes will create a lot of positive buzz for the subcompact model.

With all the news focused on the Fiesta, one might think that bankrupt General Motors has nothing on the horizon to fight back. Or, perhaps the company plans to maintain the status quo by continuing with its current strategy of supplying the unpopular Korean built Aveo to Chevy dealers.

Despite Bankruptcy, GM Moves Forward

What we have learned is that GM doesn't plan on letting a devastating bankruptcy stop new product development at least as far as its small car plans are concerned. By next Spring, the Chevy Cruze will hit the market, a compact replacement for the aged Cobalt. That car, which was designed by Opel engineers and is currently on a worldwide roll out, is the heart of GM's small car plans. However, there is one more upcoming model GM still wants you to know about – the Viva.

Not much is known about the Viva other than analysts believe that the car is based on a small car concept platform, the Beat, which has been displayed at auto shows for the past several years. That car was to power GM's subcompact car platform for its overseas market, but wasn't expected to be sold in the US. Now, with Ford bringing the Fiesta to the states and with the Obama administration raising fuel standards, the Viva will be GM's answer, a model that along with the Cruze should help GM keep pace with rising government fuel standards.

Tiny Engine, Excellent Fuel Economy

Not much is known about the Viva other than what can be drawn from the Beat concept. More than likely the car will seat four passengers, have a tiny 12.L I4 engine and be paired with a five or six speed manual transmission standard. Because GM is largely embracing six-speed automatic transmission technology, the Viva may also include that option too. Regardless, look for the Viva to compete against the Fiesta as well as the Honda Fit and Toyota Yaris.

What we do know is that the Viva will likely be built in the US, though it may initially be imported from Korea or some other GM market. With the company saying that the car will be sold by Summer 2010, that doesn't give GM much time to choose a factory and get production ramped up. Still, factories in Wisconsin, Michigan and Tennessee are being considered with a final plan expected before the end of this summer.

Should GM successfully emerge from bankruptcy later this year, both the Viva and the Cruze could go a long way to reshaping Chevrolet, enabling one of America's most storied brands to recapture some of its past glory while fending off the likes of Ford, Toyota and Honda.