General Motors has cut, cut and cut again – and is also building the only small car produced in North America.

The company has reduced the number of North American brands it has to four, Chevrolet, Buick, Cadillac and GMC, from eight in its 2009 pre-bankruptcy days and is about to launch the new Sonic, known as Aveo in Europe.

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Chevrolet, with more than 4.2m sales in 2010 is now one of the world’s five top brands, Mark Reuss, head of GM’s North American operations, told reporters ahead of the Detroit show.

“We’ve cut down our inventories so we really are making cars to demand which is a really powerful message,” he said.

Unveiling the 2012 Chevrolet model, he said the Sonic will be available in four-door saloon and five-door hatchback styles.

Separately, Chris Perry, vice president of Chevrolet marketing, said the new Sonic “blends the practicality of a small car with the passion for driving that Chevrolet vehicles like the Corvette are known for.

“Its combination of great design, fun driving experience and the latest connectivity features create a serious competitor with a fun spirit.”

Production begins later in 2011 at the Orion assembly plant in Michigan which received a $545-million investment in upgrades and retooling and will help restore approximately 1,000 jobs in the metropolitan Detroit area.

“Chevrolet is the only company building a small car in the United States,” said Perry. “We believe the Sonic will bring substance to the segment, with progressive styling, performance and value that will change perceptions of what a small car can be in America.”

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