GM was the last automaker to offer a sub-$10,000 car in the U.S., selling its entry-level Aveo for $9,995 two years ago, according to Kelley. But it has since discontinued that version of the car and raised the sticker price to $12,625.
In September, GM said it would replace its low-priced Cobalt compact with the Cruze, a fancier product.
"We've been more in the [higher-priced] camp," said GM spokesman Terry Rhadigan, who downplayed the idea that Aveo pricing could fall in response to the new Versa. "We think the pricing we have is the sweet spot for the market."
In the rest of the world, carmakers are mostly taking the low (price) road.
In India, where local company Tata is planning a $2,500 car, Ford offers a sedan that sells for $9,000, its least expensive car in the country. In Japan, Nissan sells a micro-compact called the Pino that practically fits in the Versa's trunk, for close to $8,000. And GM is preparing to sell a subcompact called the Beat that could come in well below $10,000. But the company has no plans to bring it to the U.S.
"The real small cars will remain a niche market in the U.S., while most of the rest of the world is focused on small-engine cars with low price points," said Jesse Toprak, a sales analyst at Edmunds.com.
For Nissan, the sixth-largest carmaker by U.S. sales, the Versa has been a relative bright spot in a relatively lackluster year. Through September, the model's sales are up more than 13% compared with the first nine months of 2007, while Nissan's overall U.S. sales are down 3.4%. In September, Nissan's sales fell 37% compared with a year ago.
According to Castignetti, the company had planned to bring in the basic version of the Versa for some time. The smaller engine is already used in foreign markets, including Ireland.
"Then the economy went south and because of that, the pricing of this car couldn't be more perfect," he said.
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ken.bensinger@latimes .com
