Beginning in 2016, Chevrolet will be pulled from the European market in an effort for GM to strengthen its Opel and Vauxhall brands. At this point, Chevrolet will only offer “select iconic models such as the Corvette” on the Continent. GM acknowledges the need to “reduce the market complexity associated with having Opel and Chevrolet in Western and Eastern Europe.” Chevys will continue to be offered in Russia, where “the brands are clearly defined and distinguished.”
This removal of products in Europe will also affect GM Korea, which has developed and builds many of the Chevrolet vehicles here. The Detroit-based automaker’s exit almost certainly will mean a sharp decline in Korean production.
GM’s inability to manage and sufficiently differentiate Opel, Vauxhall, and Chevrolet contrasts sharply with the Volkswagen Group, which has successfully positioned Volkswagen, Audi, and Skoda in European markets and is determined to find a profitable niche for SEAT.
Chevrolet had appeared in Europe in 2005 as a mainstream brand, when Daewoo vehicles were rebadged with the iconic bow-tie logo. The brand seemed to be on an upswing at a time when Opel was bleeding money and was the subject of an ultimately unsuccessful bidding war.
GM now hopes that Chevrolet customers will migrate to the Opel and Vauxhall brands, which are positioned slightly higher on the marketplace. One can only wonder if these hopes are the only thought process behind such a drastic withdrawal. There must be some other reason for GM to do this, especially at the expense of Korean jobs and European sales. The most curious part of the whole ordeal is that GM will still sell Chevys to Russia; this could be a marketing endeavor since there possibly is a higher demand for the best of Chevy’s selection there or, on the other hand, it could just be a reflection of Chevy closing a marketing gap in Europe. There may be nothing else it can truly compete with, so it seeks income from other markets. Who knows?
