Chevy Cruze seeks sales rebound with price cut

By Jhoo Dong-chan

GM Korea has decided to lower the price of its recently unveiled Chevrolet Cruze sedan after unexpected delivery delays and disappointing initial orders.

According to GM Korea, the price has been cut by 2 million won, with models starting at 16.9 million won ($14,753).

“The all-new Chevy Cruze has differentiated qualities in performance, interior space and safety,” GM Korea President and CEO James Kim said. “I believe the price cut will deal a refreshing blow to the nation’s compact sedan market.”

But industry insiders said the decision is driven mainly by disappointing orders for the Cruze since its introduction in January. In nearly two months, there were only 2,000 orders.

A GM Korea official partly admitted the claim.

“It is true that the number of initial contracts for the all-new Cruze sedan for the last two months has been slowdown,” she said. “With the lowered price, however, the compact sedan model sales momentum will be boosted in the Korean market.

“The recent delay in vehicle delivery is, however, not related to the company’s decision. It was just a belt-and-braces approach to ensure the vehicles’ quality before they are handed over to customers.”

Delivery of the Cruze resumed on Tuesday.

Motoring groups and customers welcomed GM Korea’s decision.

“The model’s cost effectiveness has been greatly enhanced with the price cut,” a Seoul-based motor group member surnamed Park said.

“Compared with its competing models equipped with a 1.6-liter naturally aspirated engine, like the Hyundai Avante and the i30, the all-new Cruze’s 1.4-liter direct-injection turbo engine has better performance and fuel efficiency. The decision is a game-changer.”

GM Korea introduced the Cruze on Jan. 17. The popular sedan is the carmaker's best-selling model, with 4 million cars sold in 115 countries since its debut in 2008.

Based on next-generation compact sedan architecture developed by Opel, GM's core affiliate in Europe, the wheel base of the new Cruze has been extended 1.5 centimeters and the height 2.5 centimeters, while leg room for rear-seat passengers has been enlarged by 2.2 centimeters.

Despite its bigger size, the Cruze's empty vehicle weight is also 110 kilograms less while the body is about 27 percent stronger than the previous model, according to the official.

The carmaker's latest 1.4-liter double overhead cam (DOHC) turbocharged four-cylinder engine that produces a maximum of 153 horsepower, with 24.5-kg.m torque, powers the car.

The official said the Cruze can accelerate from 0 to 100 kilometers an hour in 7.5 seconds and has fuel efficiency of 13.5 kilometers a liter.

The new Cruze also features advanced drive assistance systems (ADASs), including front collision alert, side blind spot alert and advanced parking assist. The vehicle's eight-inch high-definition, full-color display _ with the carmaker's MyLink Infotainment system _ offers smart navigation, while the car has a BOSE premium surround system.