Explaining Southern California's economy

LA Auto Show: With Chevy Cruze, Sonic, and Spark, GM has cracked the code on small cars

LA Auto Show -  31

Anibal Ortiz / KPCC

The 2014 Chevrolet Spark EV is introduced at the LA Auto Show. It's the smallest vehicle in the entire GM lineup. It's all-electric. And its shows that GM is at long last taking small cars seriously.

General Motors.

Small cars.

Two concepts that, a decade ago, few would have uttered in the same breath. GM had left the small car market for dead. While it focused on trucks and SUVs and their nice, fat, profit margins, and also dedicated itself to turning Cadillac into a high-performance brand while simultaneously saving Buick, it left low-margin small cars to Honda, Toyota, Nissan, Hyundai, and Kia. 

Honda and Toyota got started in the U.S. market with small cars, so they always knew what they were doing. Hyundai and Kia, the South Korean upstarts, simply copied the Japanese playbook. 

Then the financial crisis struck. The federal government bailed out GM, then the company went bankrupt. Somewhere amid one of its numerous pre-Chapter 11 restructurings, GM got religion on small cars.

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Chevys and Twinkies both survive the apocalypse...and bankruptcy?

I think my favorite Super Bowl commercial was from Chevy. In it, a guy driving his Silverado pickup with his dog discovers that he's survived the Mayan 2012 apocalypse. As grateful man and beast drive through a ruined landscape, the rubble of cities, flaming Big Boys, with spacecraft crashed along roadsides, volcanoes erupting, and asteroids still hurtling toward the Earth from space, they realize their good forture as Barry Manilow serendes them with "Looks Like We Made It." They then discover that they aren't alone. Other Chevy owners have also survived. And the Ford owner? Well, he didn't make it.

But the Twinkies did! Interestingly, Chevy had to survive General Motors' bankruptcy in 2009 to be able to survive the 2012 end of the world. The company that makes Twinkies, Hostess Brands, also came through bankruptcy, back in 2009 after declaring Chapter 11 in 2004. It just declared bankruptcy again, however. In TV land, the apocalypse probably put an end to all that. Luckily, as it turns out — we all knew Twinkies would survive, even if we weren't sure about Chevys.

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