The good old days of late summer 2009.

It was a great time to buy a new car. Monthly new car sales in North America had plummeted to under 10 million units.  Access to financing seemed to be near impossible for a lot of consumers. Brands were orphaned. Leasing collapsed. Banks were picky. The future was uncertain and… raw materials were cheap.

It was a good time to buy new at a deep, deep discount.  Has that time passed?

What got me thinking about this was a late model car I was using for my auction travels. A popular car. One that sells like hotcakes. Yet it looks like nearly every interior component within it has been parts binned, deconteted and cheaped out to epic proportions.

It offered good fuel economy, a nice radio display, and several hundred pounds of plastics that were in varying forms. Could the car get any cheaper and remain marketable?

I had my doubts. From the wafer fin door panels. To the glossy, Tonka like display of the center dashboard. It reeked of cheap to the point where an hour inside of it felt like a petrochemical bath.

As I went to that evening sale, I thought,  ”I wonder if this material is cheaper to buy than cardboard boxes?” It was an honest question because everybody uses this cheap stuff. From the mightiest of manufacturers to the most irrelevant of niche players. The hollowness of material quality and feel for anything 20k or under seems to be an epidemic of cheap these days.

Yet everything costs more. Reconsider those MSRP’s for a moment. There was a time not to long ago when a $13,000 Yaris, Versa, Cobalt, Aveo, Rio, and PT Cruiser were publicized on a paperish pulp we used to know as a newspaper. Remember those?

Now a few of these names, along with their far more marketable descendants are venturing hard towards the $20,000 mark. There a few discounts. Maybe even a rebate or two.  But the hard march to the next big round number seems to be the new tune of 2012. A loaded Camry can now retail for well over $30k. The Lexus LS400h can now cost nearly $100k.  We’re talking two decent foreclosed houses in the ex-urbs here folks!

This brings the TTAC readers to our question for today. Have we passed the peak of cheap? Are we bound to a new world of car buying where commuter cars only feel cheap and the ‘nip and tuck’ of cost containment has run the course?

What says you?

First a little background. After a very prosperous and promising 90s, it seemed GM had called it quits in the 00s. Extreme penny pinching eliminated but the most basic forms of engineering and development. The interiors were the most hideous on this side of a Trabant. You get the picture.

GM managed to alienate much of their fan base. GM hit record growth. As they hit lower price points they grew and then grew some more. Even in a market like Brazil, so sensitive to prices, inevitably GM hit a wall. Sales started to fall. People caught on that they were buying the same tired car from 10 years ago. The competition improved by leaps and bounds. GM not only stalled, they seemed to go back. Most people buying the General’s cars were doing so because of the ‘deal’, not because they liked the car. How would GM climb back out the hole it had dug?

To find out, I headed on down to my local friendly dealer to see and drive the Cobalt. To gather some impressions that I’ll now share with all of you.

What first hit me was the back. Big. The Cobalt sports one the largest trunks in Brazil (always good for a people who are big into, well, trunk. It’s a shame then that its space is not all that useful. Though it has great capacity, a lot of this capacity comes from the lid being very tall. As the car is relatively narrow, you may just have to put your bags side by side instead of one on top of the other.

In Brazil, the car is sold with a 1.4 L engine, which is good for 97hp on Brazilian gas or 102hp on ethanol. On the sugarcane juice it puts out 13kgfm of torque. This all means that if you want the car to go, you’ll have to row your gears with competence and keep the revs high. This car weighs little more than one metric ton and this taxes the little engine. Imagine this large car, loaded with baggage in the huge trunk and 3 good size teenagers in the back. Daddy will have to plan his passing and merging gingerly.

GM talks about 0-100km/h times of less than 12 seconds. My highly scientific test methods, laying on the accelerator, and keeping it floored until the shrieks of the salesman makes me slow down, make me believe in something around 14 to 15 seconds. If GM is to be believed, this car will, with a backwind and an endless straightaway at sea level, get to 170km/h. The torque available for such a small engine is nice and it feels like that there is some at lower rpms. Like Americans often times repeat, there is no replacement for displacement and miracles are rare to come by. My short test drive showed me that you will need to rev, but this little engine does not rev as freely as other small engines I’ve tested. It becomes gruff and complains as the revs go up.

Alas, my test drive was limited. Worried that my unwilling partner was going to hit me after a few short bursts of acceleration, I couldn’t test it in the curvies or broken pavement. If you believe what the press is writing though, it does feel solid. It drives like a big car, with all the good and bad that entails. According to the press, it does do curves nicely enough. My impression is that at a sedate pace it will be comfortable enough. It rides on 15′ wheelies.  The tires are 195/65, which is good as sidewalls thinner than that become very tiring on Brazilian roads due to bad maintenance.

Inside is where this car really shines. The seats and even the instrument cluster have been seen before in the Agile. However, the seating position is much more straightforward and less convoluted than in said car. There is good head and shoulder room. Your legs will not bump against anything either. Very good. As this platform is all new and global, and was done taking into account that new thing called ergonomics, it’s easy to find a comfortable position (without having to twist your spine like in the Agile and other GM small cars heretofore). The greatest ergonomic mishap is that the power windows’ controls are too far back on the arm rest. Thus, you’ll be forced to get your hand in all kinds of weird shapes to access the switches.

The seats themselves apparently are a little bigger than those found in other cars of this segment in Brazil. They also seemed comfortable enough. They have a nice wavy pattern on them and manage to escape the black on grey theme found in almost all other small cars in Brazil. The dashboard and door panels use plastic a touch above the competitors which is nice for GM in Brazil (head bow to you). Like the seats, they also managed to get some greenish and brown hues into the plastic making them much more visually pleasing and soothing than those in competitors.

Another nice touch is that GM has used bits and pieces from the Cruze in the Cobalt. This gives it a nicer overall feel and will please all but the most soft-plastic fanatic. The turn stalk, for example, is the same one found in the Cruze. The instrument cluster is like in the Sonic reviewed by Steven Lang. Inspired by sport bikes it is different from the norm. My only gripe is the needle of the tach. Seems like a really cheesy piece of very cheap red plastic. Few people will notice or care though.

The exterior design is pleasing. At first glance, Brazilians will be forgiven if they just think it’s an Agile sedan. But pay close attention and you’ll see that the Chevrolet family truck-like fascia has been softened. The little curves make all the difference and while on the Agile it is ugly, on this car it works. The greenhouse is short, much more so than in the main competitors Logan and Versa, but it follows the spirit of the times and most people will mindlessly sacrifice visibility for style. The sides as slab-like. This is fine with me as I’ve said it here before, I like boxy cars. However, the tall cabin and seating position, plus the relatively low hood and very high trunk lid make parking sensors almost an obligation on the car.

Taking it all in, design-wise there are just two ill-resolved issues. One is the trunk lid. It’s very tall. This characteristic is punctuated by having a crease run down the middle of it. This visually spikes it up even more in a place where I think it would benefit from being flatter. There is another odd crease that starts out in the back of the car and makes its way through to the back door where it plunges down and just dies. It appears to be there just to break some of the slabness. However, the execution was clumsy and, especially on lighter-colored cars, it makes it seem like the car’s been hit. The first time I saw Cobalt in the wild, the first thing I noticed was what seemed like a huge dent in the back door. No, it’s just that styling effect.

All in all a good, professional design. A little boring, but sedan buyers in this segment in Brazil are boring, I mean conservative. The few pieces of chrome here and there sophisticate it a little, the proportions are generally ok. At the price point, you really can’t complain. Much more of a looker than the Renault Logan that, with the exception of me and a few ex-Soviet bloc expats, nobody likes. The other main competitor is the Logan-in-Japanese-drag, the Nissan Versa (Sunny in America), which is very Asian. Which is good or bad depending on your personal tastes.

So now we come to pricing. Let’s consider that, roughly, 1, 80 Brazilian reais equals one American dollar. This cars starts at $39,980 (US$22,200). This gets you the basic LS trim, which gives you AC, hydraulic steering, power locks and a pocketknife key (don’t ask me why but this is a big deal in Brazil and GM proudly emphasizes this, I mean on a VW Gol you can pay extra to get one!). There is the intermediary trim and the top of the line LTZ that starts at R$45,980 (US$25,500) and adds special alloy wheels, power windows (only front doors), double airbag, ABS, fog lights in the front, trip computer and CD player. Sadly, this makes this car very competitive in Brazil. In our not-so-little-but-still-very-warped market this makes the Cobalt really attractive, GM predicts sales of 3,500 cars a month, and I believe it. Especially after the market knocks off at least R$2,000 from the basic one and maybe 3 or 4,000 from the LTZ.

So like the Sonic previewed by Steven Lang, two big hits in a row for GM on TTAC. Must be some kind of record.

Shawn writes:

Hey Sajeev and Steve,

I recently asked the Best and Brightest for help regarding my friend’s car buying dilema, but now I’m in one of my own! I am looking to get rid of my 2006 Mazda5 GT, which has been quite problematic. I can no longer tolerate the frequent trips to the shop. Its got about 125,000km on it, and I’ve been getting offers ranging from $6000-8000 for it on trade. The cars I am considering are in the compact to mid-size class, but there are benefits to each car, and I can’t seem to make up my mind. I am seeking a car with decent fuel economy that is fairly engaging to drive. However, I DO NOT want a harsh ride. The GTA is filled with pot holed roads, and I know the stiff ride would get tiresome. Manual transmission is preferred, but not necessary. I do carry four people occasionally, so cross out any coupes. On the Mazda I’ve taken quite a hit in the residual value, so this time around, I am looking to buy something that is a couple of years old. That way, someone else takes the largest depreciation hit. Here is the list so far:

1. 2007 or 2008 Acura CSX w/premium package and manual tranny: Essentially a Civic with a nicer front and rear end, leather, a bit more sound deadening, and the motor from the RSX. Really fun to drive, but the manuals that I’m seeing in the GTA carry a price premium… The 2008 that I test drove with 58,000km is going for $18,900. At this point, does it not make sense to just buy a brand new one for $23,000?
2. 2008 Honda Civic EX-L w/ manual: The CSX, while it only has 15 more hp, does feel noticeably more powerful than the Civic. My main problem with the Civic is that it feels a little gutless on the highway. However, it does deliver great fuel economy. Going in the $15-17,000 range.
3. 2007 or 2008 VW Rabbit: These are surprisingly cheap in the GTA… There are quite a few 2007 and 2008s with low mileage going in the $12-15,000 range. I don’t find this car as engaging to drive as the Acura, and the VW shifter just doesn’t compare to the Honda’s. I do love the “solid” VW feel, but I am concerned about the reliability of the Volkswagen. Fuel mileage is also disappointing. Jettas carry a price premium and I prefer the hatch.
4. 2007 or 2008 Ford Fusion SEL: This is the lazy commuter choice. It was surprisingly good to drive, but I am not a huge fan of the looks, which I find to be a little bland and cheap looking. I would be looking at a 4 banger with auto in this case, because the manuals are just about impossible to find. Quite cheap as well, with low mileage examples going in the $13-16,000 range. Not the greatest on gas either.
5. 2007 or 2008 Honda CR-V: In Canada, only the LX was offered with front-wheel drive. If you step up to the EX, you need to get AWD, which I am hearing is a little problematic. Apparently, there is a grinding issue in reverse? Either way, I had this car as a rental for a week when the Mazda was in the shop and found it to be quite easy to live with. The steering and brakes were just right and the car was roomy. Downsides? LOUD on the highway, and the ride is a little harsh. Fuel mileage is so-so. Holds it’s value really well, so we’re talking $18-24,000.

Lastly, 2012 Ford Focus Titanium: Ford has really outdone themselves with this one. I found that the car felt like it was worth the admittedly steep price tag. The car has a refinement to it that is not matched in the compact class, and I found the MyFordTouch to be pretty easy to use. Downsides? Rear seat legroom is a joke. Also, I am assuming that this car is not going to hold it’s value well, since most Fords do not. Probably best to wait a couple of years for a lightly used one?

Well, Best and Brightest? What to do? Am I forgetting something that I should be driving? I have intentionally left out the TSX and GTI as I do not want to purchase a vehicle that takes premium when regular is already at $1.38/L.  Help Sajeev and Steve!

Look at this car, it’s horrible. How did this get through so many people?

We’ve all thought something along these lines when we first sat in a Chevy Cobalt, but few GM employees would ever say it out loud to a reporter. At least they wouldn’t until a much-improved replacement was waiting in the wings. But because the Cruze launches this year, GM execs like VP of global vehicle engineering Karl Stracke can bash on the old Cobalt to his heart’s content, knowing the Detroit News will dutifully report it as a sign that GM “gets it.”

GM’s North American honcho Mark Reuss even goes as far as to tell the DetN

We have never really built good small cars. But we are now.

And though it’s heartening to hear that GM’s top brass are regularly driving and critiquing their company’s (hopefully non-prepped) vehicles, this ritual penitence is as old a trick for GM as the “happy days are here again” television ad format. Until those Cruzes hit the streets, sell well, and don’t have the problems their Korean cousins did, GM still hasn’t “really built good small cars,” as Mr Reuss so eloquently puts it.

We at TTAC, (well, me, only) have said that since everyone is raining a storm down on Toyota other recalls are slipping by without equal scrutiny. So when I read this article, I thought it fair, in the interests of journalism, to blog it. Not because of who it is, but the reasoning around it.

Are you saying that GM didn’t supply a drawing and specification to the supplier? And if they didn’t, GM didn’t approve the supplier’s unit? Didn’t GM perform any quality control on the units delivered by the supplier? This sounds awfully like another company. GM’s Vice President of Quality, Jamie Hresko said (via Reuters) that ” After our in-depth investigation, we found that is a condition that takes time to develop. It tends to occur in older models out of warranty,”. While I’m not expecting a full congressional hearing or a suspension of sales of cars, it will be interesting to see if a similar amount of media scrutiny will ensue over this issue. Or will the press file this under “dog bites man”?