Why is Chevy trying to cash-in with the success of Toyota Scions xB, xA and TC by creating this compact cars?

Answer 1

The cars at the NY auto show were created in Korea by GM Daewoo and are being shown as at the NY show as Chevy products.

the success of the Scion brand is enviable but it is not the reason the cars are being considered. It will not be long before the Chinese manufacturers enter the US market. If the trends of the past are any indication of the future, the market segment the Chinese will come after is the inexpensive entry level market; just where Scion and others are playing. As can be certain, manufacturers are scared and they don't want to give up any market share.

Several manufacturers have already launched products as defensive strategies to make the entry level market less attractive as an entry point--examples are the Honda Fit and the Nissan Versa that exist only to populate that market segment. Toyota's Scion is a similar defensive initative. Ford will likely use the Mazda 2 as its entry. But make no mistake about it, its the Chinese threat that is driving the market, not the popularity of the Scion because none of the manufacturers are "cashing-in" on this low or no profit segment.