In 2006 the Chevrolet Aveo 5 was proudly introduced at the Greater Los Angeles Auto Show. The "new" Aveo was actually a rebadged version of the Daewoo Kalos, which is built by a South Korean subsidiary of General Motors known as GM Daewoo. The car was exported to the United States and Canada, in addition to other countries. The Aveo 5 was the model name given to the five door hatchback version in Canada, and the Aveo 5 name was adopted by the United States for the 2007 version of the hatchback. The fundamental mechanical engineering of the Aveo can also be found in a vehicle known as the Pontiac Wave. To avoid any further confusion, it is important to note that the Daewoo Kalos, Aveo and Pontiac Wave are all fundamentally the same vehicle.

The introduction of the car was an earnest attempt on the part of General Motors in America to compete with the fuel efficient and inexpensive sub-compact cars, such as those produced and exported by Honda and Toyota.

Not by any means stunning to look at, the vehicle did offer General Motors in the United States the opportunity to provide a relatively inexpensive and fuel efficient sub-compact car to those drivers who were no longer interested in big, gas guzzling SUVs. Despite its boxy exterior and limited interior, the car has remained popular with young and new drivers as well as commuters who want a reliable mode of transportation that will not drain their wallets at the dealership or at the gas pumps. In addition to excellent gas mileage, the Chevrolet Aveo 5 is extraordinarily easy to parallel park and quick to maneuver through crowded city streets, which helps to make the car a great vehicle for commuters.