In Washington last week, General Motors unveiled the U.S. auto industry's newest challenge to fast-selling imports. GM's new minicar: the Chevette, a stripped-down, two-door hatchback driven by a four-cylinder engine and sticker-priced at $2,899 (a model with a back seat costs $3,098). According to GM, soon-to-be-released Environmental Protection Agency figures will show that the Chevette gets 28 to 30 miles per gallon in city driving and 39 to 40 m.p.g. on the highway.
GM clearly chose Washington for the unveiling to impress Government policymakers. They have doubted that Detroit could respond quickly to public clamor for low-cost transportation, but the Chevette was...