This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Maybe It's Too Soon to Count Out GM's Chevrolet Malibu

DETROIT ( TheStreet) -- Maybe it's a little bit too early to count Malibu out.

The biggest U.S. automaker does not, at the moment, have a viable entry in the biggest sector of the U.S. light-vehicle market. But as it moves toward the introduction of the 2014 Malibu, GM (GM - Get Report) said the midsize car will come with relatively high fuel efficiency, besting category sales leader Toyota (TM - Get Report) Camry, and will start at a competitive $22,965, excluding fees.

Malibu, which will start to show up at dealers this fall, will have an EPA-estimated 25 city and 36 highway mpg, representing a 14% improvement in city fuel economy, GM said Wednesday.

Malibu will also be the first midsize sedan sold in the U.S. to offer stop/start technology standard on its 2.5L base model. Stop/start technology automatically shuts off the engine when the car comes to a stop -- at stoplights, for example. The engine automatically restarts when the driver takes his or her foot off the brake.

"In this competitive midsize segment, there is no standing still," said Chris Perry, Chevrolet marketing vice president, in a prepared statement. "In addition to fuel economy improvements, the 2014 Malibu is roomier and more refined than its predecessor."

Edmunds.com analyst Jessica Caldwell said the improvement in mileage is significant. "GM needs a hook," she said. "Malibu is obviously late to the party in terms of being a competitive sedan. GM needs something to attract buyers and to conquest from other brands, because every car in the field is good."

Malibu has just 7% off the midsize car market, according to figures compiled by Kelley Blue Book. Market leader Camry has a 16% market share. Honda (HMC - Get Report) Accord, Nissan (NSANY) Altima and Ford (F - Get Report) Fusion all outsell the Malibu.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
NSANY $18.78 -0.90%
F $14.91 -0.20%
GM $31.52 -0.51%
HMC $34.63 -0.03%
TM $129.85 -2.50%

Markets

Chart of I:DJI
DOW 17,550.69 -47.51 -0.27%
S&P 500 2,093.32 -4.72 -0.22%
NASDAQ 5,105.5460 -9.8360 -0.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs