The phrase “no va” (literally “doesn’t go”) and the word “nova” are distinct entities with different pronunciations in Spanish: the former is two words and is pronounced with the accent on the second word; the latter is one word with the accent on the first syllable. Assuming that Spanish speakers would naturally see the word “nova” as equivalent to the phrase “no va” and think “Hey, this car doesn’t go!” is akin to assuming that English speakers would spurn a dinette set sold under the name Notable because nobody wants a dinette set that doesn’t include a table.
Snopes.com unraveled one of the most woven yarns in all of branding and marketing, and they did it two years ago. I heard someone in the industry relate the Chevy Nova misnomer story as recently as last week. (The story goes that a lack of brand identity research lead to naming the car, literally, “no go” in Spanish. Which is then blamed for the product’s failure in that market.)

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