It’s official. The current Chevrolet Trax will be no more by the end of 2022.
However, General Motors also said it had no intention of abandoning the subcompact market.
“Chevy can confirm that production of the current Chevrolet Trax will end in late 2022. Rest assured, Chevy does not plan to abandon the important, entry-level small SUV segment though, as we will reveal an all-new Trax later this year with production starting in the first half of 2023,” Chevrolet said in a statement.
GM’s announcement comes as affordability is becoming a major issue for carmakers, fearful of shrinking the market for new vehicles even as war and inflation add to other factors that have escalating the price of the raw materials and energy required to build new vehicles.
Car prices on the rise
The price of an average vehicle sold in the United States has climbed past $45,000 during the past couple of years. While some pundits have talked about the end of the line for less expensive small cars, the fact of the matter is small cars remain an important part of the market.
Subcompact cars and crossover vehicles still represent better than 20% of the new vehicles sold in the U.S. and Asian carmakers have continued to bring out new small vehicles as domestic automakers, GM, Ford and Stellantis have killed off almost all of their subcompact models to concentrate on more expensive trucks and SUVS.
Asian manufacturers tighten grip on subcompact segment
Bob Carter, Toyota Motor North America executive vice president, recently said small vehicles, such as Corolla family, will remain a key part of the Toyota line-up. Small, affordable vehicles are an important steppingstone toward building brand loyalty, he said.
Concern about large numbers of buyers, particularly younger and more diverse buyers, being locked out of the market as transaction prices climb also has become an issue for top executives at GM as well.
As GM moves towards shifting it product line to EVs, CEO Mary Barra also has begun promising GM would offer a selection of affordable battery-electric vehicles as it introduces more than two dozen new EVs by the end of 2025.
However, the replacement for the Trax is unlikely to be an EV, using gasoline for fuel instead. It’s unclear if the replacement for the Trax will have a new name as well as a completely new exterior and interior design.
GM did not offer any indication about what might happen to Buick Encore, another small vehicle thought to be on the chopping block.