2009 Chevrolet Aveo

In 2002, General Motors purchased the automotive assets of the bankrupt Daewoo Corporation. At the time, Daewoo was South Korea's third largest automaker behind Hyundai and Kia. During GM's shopping spree in South Korea, some questioned the merit of the blue-light special. In 2002, gas was selling under $1.60 a gallon and light duty trucks and SUVs were pumping huge profits into the domestic automaker's coffers. Small, entry-level compacts and sub compacts, a staple of the Korean auto diet, produced tiny profits in comparison. Even during the 2003 Chicago Auto Show media preview when Chevrolet debuted the Daewoo-inspired, Aveo to journalists, the response was less than enthusiastic.

Fast forward to 2008 and $4 a gallon gas prices. Suddenly, economy cars are in hot demand and the subcompact Aveo is a shinning star at Chevrolet. It's the lowest-cost vehicle at General Motors and attracting a new generation of buyers into the GM family.

The 2009, front-wheel-drive Aveo continues to be offered in two body styles: a four-door sedan and five-door hatchback. Each is available with three trim levels: LS, 1LT and 2LT. One four-cylinder engine powers all styles and trims; a new 1.6-liter, double overhead cam ecotec engine with variable valve timing delivering 106 horsepower and better fuel economy than the engine it replaces from 2008. A five-speed manual transmission is standard while a four-speed automatic transmission is a $925 option. Fuel economy is decent. With an automatic transmission, expect 25 mpg in city and 34 mpg in highway travel. Regular, unleaded fuel is recommended.

Aveo's sedan and five-door hatchback boast identical pricing in 2009. Base LS models in both bodystyles start at $11,460, the 1LT checks in at $13,595 while a 2LT lists for $14,860. Korean-built models tend to undercut their Japanese and American counterparts in price. Japanese subcompacts, on the other hand, have slightly better fuel economy numbers than Aveo.

Aveo competes with recently-arriving subcompacts from Japanese automakers including the Honda Fit, Nissan Versa and Toyota Yaris in addition to the Korean-built Kia Rio and Hyundai Accent. All rank as some of the lowest-cost vehicles available, and all continue growing in popularity and quality. Aveo is a worthy competitor and does its best to stand out in the crowd

Like most subcompacts, Aveo's options and option packages are plentiful to keep the starting price as enticing as possible. That said, Aveo comes with some notable nuances standard, including one year of OnStar, GM's in-vehicle communication system linking folks up with a 24-hour manned center. Assistance is just a push of a button away to be in communication with an actual human, not a computerized tutorial. After the first year, customers can continue this worthwhile service for a small monthly fee. It's the only subcompact on the planet boasting this user-friendly technology.

Standard on all three trims includes rear window defroster, reclining front seats and AM/FM stereo. The 1LT trim adds air conditioning and compact disc player with MP3 player. Top-trim 2LT adds cruise control, power windows and locks, power side-view mirrors, upgraded cloth fabric and XM Satellite Radio.

Our test 1LT hatchback's bottom line totaled $16,295 when adding power windows and locks, anti-lock brakes, cruise control and four-speed automatic transmission.

Inside, the black dashboard top is set deep with a digital clock at the intersection of the front windshield and center dash creating an open ambiance. The two-tone dash design is friendly without being too entry-level (read cheap) looking and contours towards the center where it extends to the floor. All dials and buttons are in easy reach of the driver. Four large circular air vents are easy to manually close shut when desired. The flat instrument panel contains four analog gauges. Three easy-to-grab dials monitor ventilation are conveniently located on the center dash below the rectangular sound system. Towards the bottom of the center column are dual beverage holders that retract out from the dash. They're positioned so that when accommodating a can or bottle, the ventilation controls remain accessible. Optional cruise control ($250) functions are on the right side of the steering wheel. Aveo offers no navigation system.

A hand-operated pull parking brake is found between the front cloth bucket seats. The driver's bucket seat has a thin arm rest that folds back when not needed. The passenger seat has no such perk. No storage bin is found between the seats, but a solo beverage holder is behind the brake handle for those sitting in back or those in front who want to reach back if the two cup holders in front happen to be in use. With the front bucket seat positioned for driver comfort, enough leg room remains for travelers in back. Best to invite no more than two adults for rides in back at any one time, three would be too close for comfort.

Headlights activate from a left-side steering column stalk. A right-side stalk controls the front windshield wiper. Five-door Aveos have a rear wiper also controlled by the right-side stalk. The ignition cylinder is also located on the steering column's right side. Thanks to the hatchback window and six side windows, the Aveo5 hatchback provides great road perception in all directions. A

Second-row seat backs fold flat onto the cushion with a 70/30 split once a knob on top of the seat back is pulled up to release the back. With seatbacks up, the hatch area is small in comparison with other competitors. As in many subcompacts, headroom is surprisingly generous. A removable shelf/cover extends over the inside of the diminutive back hatch area (with second-row seats up) to retain a clean look and hide items from outside view. Despite it's 2009 model year updating, side air curtain air bags are not offered even as an option. Some subcompact rivals offer side air bags in one form or another. However, seat-mounted side impact air bags are standard benefitting front-seat riders. Anti-lock brakes are optional in all trims.

Aveo5's imposing front grille looks anything but subcompact. A trapezoid design with honeycomb designed broken into a north and south regions by a solid bar with Chevy logo front and center. It's similar to what's found on the 2009 Malibu and the all-new Chevy Traverse five-door crossover. In 2009, all Aveo5s add a small rear spoiler and three new exterior colors are found in both sedan and hatchback styles. While the sedan incorporates a modern stance, it just doesn't have the same appeal as the Aveo5. Subcompacts just look better in hatchback bodystyles.

The South Korean-built Aveo is a vast improvement from subcompacts offered a decade ago. Fit, finish, fuel economy and overall value are markedly better. Speaking of Fit, the Honda Fit five-door hatchback (the only body style offered) continues its reign as the best-selling sub compact in the United States thanks in part to a 2009 retweaking of its 1.5-liter engine improving horsepower to 117 from 109. Fit also includes a nifty second-row seat cushions that fold up like a folding chair for transporting big items when necessary.

Aveo, however, has Fit beat on price. Aveo's base price starts at $12,120 while the Fit checks in at $15,200. Both figures include destination charge. Aveo sedan and Aveo5 also quality for General Motors extended warranty. At no extra charge, buyers are covered by a 5-year/100,000-mile (whichever comes first) powertrain/transmission warranty. It's decent coverage and worth a second look. Most Japanese rivals offer a three-year/36,000-mile version while Hyundai and Kia have a 10-year/100,000-mile version. While the Kia/Hyundai seems longer in duration, keep in mind the GM warranty is fully transferable, meaning if you sell the vehicle before five-years/100,000 miles, the next owner qualifies for the duration of the warranty. In most cases, the Kia/Hyundai warranty is not transferable. The GM version adds value at trade in time.

Don't expect a 500-horsepower, jaw-dropping experience behind the wheel, but the Aveo5 performed more than adequately during city driving. Braking, turning radius and workmanship are good. It is what it is, a decent-riding, fuel-sipping hatchback that's suddenly 'cool' again.