GM Build Micro Car

Size no longer matters when it comes to the premium consumers are willing to pay for a little bit of luxury. You only have to look at the runaway success BMW has been having with its Mini range and to a lesser extent its 1-series model to see that there’s big money in small cars. GM is one carmaker exploring the possibility of launching a pint-sized premium car.

With regulators both in Europe and the U.S. seeking tougher environmental standards, carmakers are keen to downsize their product ranges. The problem for GM, according to BusinessWeek, is that it has no premium compact car platforms. Its current small car arsenal is based around budget platforms developed by its engineering team in South Korea.

One solution is to use a chassis from its Opel division in Germany, and possibly making it RWD too. The other problem is what brand to launch it under. Some of the brands under consideration include Buick, Saab, and Saturn, but no decision has been made yet.