Yeah I think its a problem. They need to establish that they can make quality, reliable small cars before they go jacking up prices.
I think the Cruze is a decent lookin car, but really, if it costs more than a Civic or Corolla, I wouldn't buy it unless they put that 150HP oil burner in it. But we won't get that because of the stupid emission laws.

I don't mind if the Cruze is priced a little higher than its competitors as long as it's better. It has to offer a few tangible benefits like better materials, better build quality better performance, and/or better efficiency.

The Saturn Astra is failing because GM did something to make it worse than its Euro counterpart. The Saturn suspension doesn't feel as tight and I've driven both manual versions of the Opel Astra and the Saturn Astra, and I swear the transmission in the Saturn is worse of the two. Much worse.

While the current Ecotec series engines seem to be pretty good, new engines, new issues....

I don't honestly think they can price a domestic as high or higher than an import and actually sell the thing. (Well not without increasing their production cost, which directly offsets the reason you just increased the price).

I want to believe...

corolla > cobaltss > cruze

HP?
Drive train?
Weight?

I think chevy has already established itself as making quality cars. Look at the cobalt, malibu and impala. The police use Malibu's.
I think this Cruz is an awesome looking car too, and with a diesel option, it'll be a killer.
As the current owner of a 06' Civic, I would certainly pay a little more for the Cruz.

What does the police using malibu's have to do with its quality?
Public works buys vehicles from the lowest bidders, not the highest quality.
Your last statement is just retarded. Why does owning a 06 civic make you want to pay more for the Cruz when you know nothing about the Cruz outside of a press release.
The current offerings from Honda and Toyota have a proven track record unlike the paper release of the chevy cruze.

Why pay more for less? GM, unfortunately, is not worth more than a Honda or Toyota. I think the Grim Reaper is knocking hard on the "big" three automakers door's.

hmmm...priced more than the competition who is well known for quality and reliability...nevermind, that's just too easy.

This is the same mistake GM makes every time they introduce a new model...all their new models are priced above competitors, then when sales don't meet expectations the incentives start. Not a smart move for any company regardless of your public opinion standing, especially considering how crowded the compact market is now.

As long as the quality, powertrain, and handling is good, I'd buy the Chevy Cruze over the Civic and Corolla. It looks better, IMHO, and at least I won't be one of the millions who drive the boring-looking and "everwhere" Civics and Corolla.

@optimummind

Yup, I agree with you - I would sacrafice quality and reliability any day for a car that would make me stand out a little more...like on the side of the road with my hood up and Roadside Assistance on its way :)

@optimummind:

As a driver of a boring, everywhere Corolla, I'll say this. If it breaks, junk yard here I come. That is the one assurance I have from owning a high popular, not really desirable car (it's not really that high on the stolen list).

My worry is the logic presented: It's more expensive because we need a higher profit margin.

The company's profit margin isn't a factor involved in my purchase decision, but overall price is. The price increase must be justified (to me) with something else... and that's what they should be discussing (if it exists).

Totally agree with JerryL
your profit margin doesn't factor into my buying decision... if your pricing it higher that it's competitors then it's got to worth more and if your competing against honda and toyota your car has got to be an excellent value, tie this in with your poor value perception (deserved IMHO) and pricing up is not going to work - why do you think Hyundai has been gaining market share? - by offering better value than it's competitors or being more expensive?

does it really take closing down ford or GM for domestic automakers to get the message and start building better cars at a fair price (and yes i know it's not exactly fair as cars are imported from where labour is cheaper but if you can't make $$ stop building cars!!) but deal with it already and move on, it's a world economy and you have to compete or die.
and why the F**K is it that GM makes better cars elsewhere in the world and sells their worse in NAmerica??

@ Cobaltssman:

You do realize you put:

corolla {is greater than} cobaltss {which is greater than} cruze

Perhaps you should trade in the cobalt ss and get a corolla. If you don't feel this way, then maybe consider re-visiting some basic elementary school math.

@Vlad & @Brian:

I don't think you guys understood my comment correctly so I'll quote myself word-for-word:

"As long as the quality, powertrain, and handling is good, I'd buy the Chevy Cruze over the Civic and Corolla."

This means, pay attention now, IF the quality AND powertrain AND handling are GOOD, THEN I'd choose the Cruze over the Civic and Corolla. Do you understand better now? =) It's an example of a CONDITIONAL statement.

Because if the quality, powertrain, and handling are just as good as the Civic and Corolla, what remaining factors differentiate among the three? Just the styling, price, and road presence.

Corolla is simply a mass-produced and well-built "household appliance" that's built for the majority of people who simply go from point A to point B. The Civic is a bit better but it's still a way-to-common econocar that milions drive. So yes, if the Cruze is just as good engine-wise, quality-wise, and handling-wise, then I wouldn't mind trying out something new that looks better.

IF a cruze was more reliable than a corolla AND cheaper than a kia AND faster than a ferrari AND handled better than a porsche AND came loaded with a trunk full of supermodels, then i'd consider buying a camaro

@cobaltssman:

LOL, that'd be dumb. Come on, trunk full of supermodels? =D

Marketing genius! Raise the price above that of the superior brands. Then, the uneducated consumer well buy the higher priced car, reasoning that it must be higher priced because it is better.

"...I would sacrafice quality and reliability any day for a car that would make me stand out a little more...like on the side of the road with my hood up and Roadside Assistance on its way :).."
Why haven't the other brands thought of this before, raise your prices and lower quality to become the world class loser in automobile manufacturing???

"aaron schmitz:

I think chevy has already established itself as making quality cars. Look at the cobalt, malibu and impala."

Have you driven one of these cars and then jumped in its Japanese counterpart? I have, and I am ashamed to say, the American cars really are junk. I really want to buy an American brand, but it's just not going to happen with the current line up of cars.

I read this an my first thought was "Why would I pay more for an inferior product?" (Inferior as in build-quality and reliability).

Just proves that the big three won't last without the government bailing them out. Alright fellow taxpayers, are we ready to foot a $50 billion "loan" to the big 3? Aww come on, we've already footed $25 billion of that... what's another $25 billion?

Somebody in government should also look up the meaning of the word "loan":
Loan (noun) 1. money lent at interest for a fixed period of time

Key point is that it needs to be paid back with interest. And you KNOW that isn't happening. In fact, that whole bit about paying back (even the same amount) isn't going to happen.

I support buying American, but only when they have a comparable product for the same (or even very slightly above) the competition. I WILL NOT buy American just because it's "made in America."

The Cruze is a neat looking car. It somehow looks larger than the segment that competes with the Corolla. I like the design very much, except for the huge Bowtie and grill. They seem over done and take away from the styling. I love all cars. Something tells me if this car had a Japanese nameplate many here would be bragging about its design. I have two Japanese autos, but keep an open mind on the US makers and hope they get their act together for the good of the country. I'm not closed to buying another US auto, but they have got to close the gap on quality and customer service at the dealerships before I consider them again. There is a world of difference in service when I go to the Toyota or Acura dealer instead of the Ford dealer.