GM may let VW and Toyota have the microcar niche

GM to let rivals have the microcar niche

As Volkswagen and Toyota quickly prepare their onslaught for the microcar segment, GM believes that there is little market for minicars and has decided not to build a competitor to the upcoming Volkswagen Up! and the Toyota IQ.

According to the president of GM Europe, Carl-Peter Forster, “These specialized urban vehicles have a limited market. I think the sweet spot is where we are with the [Chevrolet] Matiz.”

Froster believes that it would be expensive to build a new platform and new engine for a segment smaller than the Matiz

Volkswagen plans to launch a four-door version of the Up! concept it showed at various auto shows this year. Toyota, on the other hand, plans on introducing a production version of the Toyota IQ to the market in January 2009. The Japanese giant hopes to sell 80,000 units of the world”s smallest four-seater car in the first 12 months of its introduction.

The last minicar GM presented was the Opel Trixx (pictured above) at the 2004 Geneva Motor Show.


Source: Automotive News (Subscription Required)

[tags]Cars, Car, Auto, Automobile, Vehicles, Technology, Auto News, News, Automotive, GM[/tags]