The Aveo is built in South Korea by General Motors' subsidiary Daewoo, the former independent company that disappeared from the United States in 2002 after a rather inauspicious run. As Kia and Hyundai have proven, though, Korean cars improve rapidly with every generation, and the 2008 Chevy Aveo is much better than Daewoo's previous econoboxes.

Of particular note is the sedan model's improved interior and more substantial-looking styling. The 2007-year update is made all the more evident by the fact that the Aveo5 hatchback model remains relatively unchanged from its 2004 debut form. Therefore, unless the hatchback's utility or rock-bottom base price (it's the lowest in America, in fact) are of paramount importance, we'd skip it in favor of the Aveo sedan or a superior subcompact hatchback from another manufacturer.

Obviously, fuel economy is of prime concern for buyers in this segment. The 2008 Chevrolet Aveo sips fuel at a sufficiently frugal rate, but not quite at the level of the Honda Fit or Toyota Yaris. These models also sport more refined, lively engines. Because of that, and in matters of price, the Aveo is more comparable with the Kia Rio and Hyundai Accent. Needless to say, customers interested in this class have a lot of research and test-drives to do to find the subcompact that best meets their needs. But unlike Chevy's past subcompacts, the 2008 Aveo is a vehicle worthy of consideration rather than jokes.