Chevrolet success story zooms to top of the compact market; will it last?

Before the launch of the Chevrolet Cruze a year ago, dealer Steve Hurley bought three rival compacts for his customers to comparison shop -- a Honda Civic, Ford Focus and Toyota Corolla.

According to KHABAR KHODRO, "I had never been as confident to put a car up against direct competitors as I was with the Cruze," says Hurley, dealer principal of Stingray Chevrolet outside Tampa, Fla.

It turned out to be a good bet. The Cruze has shot to the top of the compact market, putting General Motors' flagship brand in unfamiliar territory. (It last led the segment with the Chevy Cavalier in 1993.)

Critics accustomed to panning GM's small cars have widely praised the Cruze. Consumer Reports, for example, lauded it as "greatly improved" over its predecessor, the Cobalt. The Cruze's success comes as the compact market grows in size and profitability, with buyers increasingly springing for higher trim levels.

The Cruze was the top-selling U.S. compact for five straight months through August, vaulting over the Civic and Corolla as they struggled with earthquake-related parts production shortages. Data show some Japanese-brand buyers strayed to the Cruze, which is now neck-and-neck with the Corolla, the annual sales leader since 2003.

The stars have aligned for the Cruze so far. But Toyota and Honda production is roaring back. And after a spotty launch with limited availability, Ford Motor Co. is finally boosting stocks of its redesigned Focus. Can the Cruze stay on top and upend the established order in the compact market?

"It's going to be a fight," says IHS Automotive analyst Aaron Bragman. "But GM comes better armed than it has maybe ever in its history."