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I drove an Aveo ... the transmission got very confused very easily. And don't get me started on the asinine "hold" feature that I accidentally bumped with my elbow ... making the car start out in OD and making me worry that the rental let me down!
The same with the AW-4 trans in my Jeep. It does some odd things, probably isn't the most efficient out there, but they last forever with little to no routine maintenance.
I think the little cars are geared low for a few reasons:
1) More "sporty"
2) People would roast the clutch trying to start out on hills if they were geared higher
3) People would complain that they are too slow off the line
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