Update: The Chevrolet Aveo's clone, the Pontiac G3, won't be part of GM's North American lineup, despite already being sold in Canada and Mexico. A Pontiac representative stated that the G3 has not been "approved for U.S. consumption" by General Motors, even though the EPA has already approved it for sale.

While the exact reasons the G3 won't be coming to the U.S. aren't entirely clear, previous speculation surmises that the G3 may not have fit in with Pontiac's performance image. The G3 has also encountered criticism for its relatively unimpressive mileage figures for a subcompact car, achieving just 27mpg (8.7L/100km) in the city and 34mpg (6.9L/100km) on the highway for the manual model, reports Edmunds.

Despite the lack of a G3 coming to American shores, Chevrolet is planning on building new compacts within the next few years that will make it to the U.S. - including one based on the Trax or Groove concepts shown at the New York Auto Show in 2007.

While currently the G3 Wave (as the G3 is dubbed in Canada) and the Aveo are imported from Korea, a new GM plant built in Mexico will likely take over production for the next generation Aveo and G3, which are set to arrive in around 2 years.

Original: GM’s Pontiac division in the U.S. is likely to expand with the introduction of the entry-level G3 subcompact sedan and hatch later this year. The car is based on the same platform as the Chevrolet Aveo and is already sold in Canada and Mexico.

The information comes from a dealer source, who revealed to Automotive News that GM will also add a redesigned Aveo5 five-door to its Chevrolet lineup in July. The EPA has already approved both vehicles for sale in the U.S. and lists them as 2009 models.

According to the EPA data, both the G3 and Aveo5 are powered by a 1.6L four-cylinder petrol engine matched to a four-speed automatic and deliver a fuel economy rating of 25mpg in the city and 34mpg on the highway.

The current Chevrolet Aveo five-door starts at $10,895 and pricing for the redesigned model is expected to remain the same. The new Pontiac G3 will likely be priced higher but its price, too, is expected to fall below the $15,895 sticker price of the Toyota-built Vibe.