Victory for OpelChevrolet is pulling out of Europe at the end of 2015
Opel has won the power struggle against Chevrolet in Europe. GM’s small car brand is leaving Europe at the end of 2015.
General Motors ended its internal brand battle and pulled Chevrolet out of Europe at the end of 2015. “With this step, we can focus our resources on strengthening the Opel/Vauxhall brand and business,” said GM’s Vice President and Chairman of the Board of Management of Opel Stephen J. Girsky Thursday.
Chevrolet’s small cars, which are mostly built in South Korea for the European market, have languished for years with a market share of around one percent, Opel and its British sister Vauxhall have reached six percent. According to figures from the industry association Acea, Chevy sold 25,752 vehicles in Europe (EU and EFTA) in the first ten months of 2013 – 17.4 percent less than the previous year. “The financial consequences are unacceptable,” Girsky said.
Cadillac is coming to Europe
From 2016 onwards, Chevrolet will only sell American icons like the Corvette in Europe. Only in Russia and the well-known CIS countries should small cars of the fourth largest car brand in the world remain on the market. The brand, which was repositioned in Europe in 2005, has 520 employees and 1,900 dealers in the former continent. The decision brings special costs to the GM international organization (GMIO) of up to one billion US dollars (about 0.74 billion euros), which are expected to occur in the last quarter of 2013 and the first half of 2014. Adam Opel AG and GM Europe would not be burdened and this.
The European boss of Chevrolet, Thomas Sedran, justified the withdrawal by the poor development of the market in Western and Eastern Europe: “If we look ahead, we see that it will be very difficult for Chevrolet in Europe.” Lower than expected sales combined with overcapacity and price wars between manufacturers made business difficult. Chevrolet customers need not worry, Sedran said. All warranties will remain valid, and spare parts should be available until at least 2025.
Meanwhile, American giant GM wants to attack Europe with its premium Cadillac brand in the next three years. “Europe is a very important market for GM. We will benefit from the stronger Opel brand and focus more on Cadillac,” GM CEO Dan Akeson said. Chevrolet should be strengthened especially in Russia and Asia.