History Alley: The Chevy Sail

This post is part of GM Authority History Alley — where we discuss the history of a past- or present-day vehicle.

As car sales in China snowballed to record heights, the auto industry had — for the first time in years — huge increases in sales to look forward to. And even though the Chinese and U.S. auto markets are similar, many Chinese customers are still buying their first car — a point at which they appreciate a low price and a good, dependable vehicle. In other words, first-time car buyers in China want value and a low price.

So in January 2010, Chevy launched the New Sail. The subcompact was pioneering for three reasons. For starters, it was the first car developed in China by a Chinese-foreign joint venture — Shanghai GM. Available as a sedan and a five-door hatchback, the New Sail is built in China and was created — from start to finish — at PATAC. Additionally, the New Sail has a sub-$10,000 base price, putting it well in reach of first-time car buyers in China. And lastly, the New Sail is exported from China to other emerging markets, making China an export base for U.S. brands — a moment whose coming many have feared over the last two decades.

The Rise

So far, the New Sail has proven to be a success. During its first full year on sale in 2011, it became the second most-popular Chevy in China on a volume basis, behind only to the larger and more expensive Cruze. Not only that, but 20,175 New Sails were exported from China since 2010 to India, Chile, Peru, Algeria, Nigeria, Angola, Libya, Senegal, Iraq, and Ecuador. This is just the beginning of GM’s China-based exports, according to several industry insiders. It’s a sure bet that North America and Europe, however, will never see this car.

The Precursor

But the bow tie-wielding subcompact was not the first time China saw the Sail nameplate from GM. In fact, Buick sold a Sail of its own in China in 2001. It was a rebadge of the Opel Corsa that didn’t do the Tri Shield brand any favors. Five years after its introduction, the Buick Sail became the Chevy Sail. The New Sail followed.

The Specs

The New Sail is available with either a 1.2-liter or a 1.4-liter four-banger. The 1.2 has a starting price of RMB 56,800 ($8,800 using current exchange rates) and can be mated to either a manual or an “electronic manual” transmission (EMT), while the 1.4-liter is available with an EMT only and starts at RMB 75,800 ($12,000). Dual front airbags and antilock brakes are standard. The low price is exactly what most of the customer base is looking for when shopping for their first vehicle.

The Lineup

As of this writing, the New Sail is the least-expensive vehicle in the Chevy lineup in China. It slots in below the Spark (RMB 77,800, $12,300), which itself is below the Aveo (RMB 81,800, $13,000) — sold as the Sonic in North America — and Cruze (RMB 108,900, $17,250), respectively. In that regard, the Sail is a prime example of filling a localized need, locally.

The Electrification

At the end of 2010, GM showcased an all-electric version of the New Sail. The General is currently testing a capture test fleet of the vehicle in China. For the car to sell well, much will hinge on local subsidies for electric vehicles. Given China’s desire to decrease pollution, we don’t think this will be much of a problem.

The subsidy can be quite lucrative for buyers, with most discounts cutting a healthy 25% from the vehicle’s price. However, it’s important to note that the subsidy only applies to locally-produced vehicles.

This post is part of GM Authority History Alley — where we discuss the history of a past- or present-day vehicle.