Chevrolet pulling out - Oh Deary me!

Honest John Back Room » Motoring discussion
What is life like with your car? Let us know and win £500 in John Lewis vouchers | No thanks
View Threaded
Fri 6 Dec 2013 14:50
Chevrolet pulling out - Oh Deary me! - oldroverboy.

General Motors has announced that it is to stop selling Chevrolet models in European markets – including the UK – from the end of 2015. The Chevrolet brand arrived in the UK in 2005, effectively replacing Daewoo. But it hasn’t been successful GM, causing financial losses every year.

The move to stop selling Chevrolet models will allow GM to give Vauxhall/Opel its fullest concentration.

Those who own Chevrolet models shouldn’t worry too much about servicing and maintenance– many components are shared with Vauxhall models and GM will continue to support its Chevrolets after sales end. Some select models will still be offered – including the Corvette sports car – and the brand will continue in Russia.

Reply | Report as offensive | Link
Fri 6 Dec 2013 15:18
Chevrolet pulling out - Oh Deary me! - RT

It's no surprise, sales have never been very good - the original Chevrolets were literally re-badged Daewoos and as they changed onto more up-to-date Opel/Vauxhall platforms they simply came into competition with Opel/Vauxhall.

GM Detroit launched Chevrolet as a world brand but can't grasp the fact that the Chevrolet brand means nothing in Europe, yes we've seen it on film and TV and we've seen the odd imported Corvette but that's all.

Vauxhall in the UK, Opel in rest of Europe, Holden in Australia, Chevrolet in the Americas - these are GM's global presence - the customers cope with that, why can't the management?

But more importantly, what's the value of Chevrolet sponsoring Man Utd now ?

Reply | Report as offensive | Link
Fri 6 Dec 2013 15:41
Chevrolet pulling out - Oh Deary me! - colinh

Surprised they didn't go all the way and ditch the Vauxhall name as well. Marketing two brands with global advertising doesn't make sense. For example, at the recent England v. Germany match at Wembley the Vauxhall name was prominent, but meaningless to half the TV audience

Reply | Report as offensive | Link
Fri 6 Dec 2013 16:54
Chevrolet pulling out - Oh Deary me! - RT

Vauxhall is just as well known in Germany as Opel is here.

There's simply no financial benefit in changing Vauxhall to Opel - but a significant cost to do so.

Reply | Report as offensive | Link
Fri 6 Dec 2013 17:01
Chevrolet pulling out - Oh Deary me! - Collos25

Surprised they didn't go all the way and ditch the Vauxhall name as well. Marketing two brands with global advertising doesn't make sense. For example, at the recent England v. Germany match at Wembley the Vauxhall name was prominent, but meaningless to half the TV audience

If you watched the match like I did in Germany the electronic adverts were for Opel.

Reply | Report as offensive | Link
Fri 6 Dec 2013 19:39
Chevrolet pulling out - Oh Deary me! - getafix

Opel\Vauxhall has cost GM 10 billion pounds of losses over the past ten years. It could ditch this useless brand altogether.

Reply | Report as offensive | Link
Fri 6 Dec 2013 20:09
Chevrolet pulling out - Oh Deary me! - RT

Opel\Vauxhall has cost GM 10 billion pounds of losses over the past ten years. It could ditch this useless brand altogether.

The losses are paper ones - because GM Detroit charges GM Europe excessively for intellectual property and technology developed outside Europe - this is no different to all multinationals who "maximise" their head office profits and "minimise" their world-wide tax bills.

GM Europe equally gets little financial credit for development for features used for GM models around the world including the US.

Most GM cars, worldwide, sit on front-wheel drive platforms nowadays developed by GM Europe up to and including the Chevrolet Impala.

If GM Europe were shut, GM worldwide would follow very quickly.

Edited by RT on 06/12/2013 at 20:10

Reply | Report as offensive | Link
Fri 6 Dec 2013 20:30
Chevrolet pulling out - Oh Deary me! - getafix

GM almost sold Opel to the canadian Magna in 2009. The deal was even annonced before the final negociations failed.

Reply | Report as offensive | Link
Fri 6 Dec 2013 21:07
Chevrolet pulling out - Oh Deary me! - RT

GM Detroit has been blowing hot & cold about it's subsidiaries for decades - basically it doesn't understand them or their markets.

I'm sure that all fledgling car companies use GM as a case-study on how not to run a multi-national car maker.

Edited by RT on 06/12/2013 at 21:07

Reply | Report as offensive | Link
Fri 6 Dec 2013 22:54
Chevrolet pulling out - Oh Deary me! - galileo

Am I correct in thinking the notorious John DeLorean was a GM exec before he scammed our Government out of large sums to set up his car company in NI? Or did he work for Ford previously?

Reply | Report as offensive | Link
Sat 7 Dec 2013 08:27
Chevrolet pulling out - Oh Deary me! - RT

He worked for most of the US car makers - Chrysler, Packard, Pontiac and Chevrolet.- he designed the Pontiac GTO, Pontiac Firebird, Pontiac Grand Prix, Chevrolet Vega and of course the DeLorean DMC-12.

Reply | Report as offensive | Link
Sat 7 Dec 2013 11:21
Chevrolet pulling out - Oh Deary me! - jc2

Chevrolet,Oldsmobile,Buick,Pontiac,Cadillac are all GM brands-Chevrolet being the budget one.

Reply | Report as offensive | Link
Sat 7 Dec 2013 17:58
Chevrolet pulling out - Oh Deary me! - Happy Blue!
Except Oldsmobile no longer exists (actually it could be Buick), but certainly one of them.
Reply | Report as offensive | Link
Sat 7 Dec 2013 19:21
Chevrolet pulling out - Oh Deary me! - dan86

Im sure pontiac was laid to rest as well.

Reply | Report as offensive | Link
Sat 7 Dec 2013 19:27
Chevrolet pulling out - Oh Deary me! - oldroverboy.

Our Excellent local dealer in Wales, Howards of Carmarthen had "invested" in all the bits to get the franchise and had done well, but where will be the return on their capital, as with many other of the smaller "family run" dealerships.

Do GM give a S***E?

Answers on a postcard....................

Chevrolet lost when they started to price the cars the same as vauxhall and Vauxhall were still giving big discounts.

an orlando for £16000 or a zafira for £10,000 An astra for £10.000 or a chevrolet for £13000 with the false perception that chevrolets are gas guzzlers.

Reply | Report as offensive | Link
Sat 7 Dec 2013 19:49
Chevrolet pulling out - Oh Deary me! - RT

Looking at the GM Inside forum, populated by US GM enthusiasts, it seems that Americans think you can move a lower mainstream brand like Opel/Vauxhall up into the premium sector just by increasing prices !!!!

They now think they can convert all the ex-Chevrolet dealers in Europe to Cadillac and conquer the European luxury sector because "everyone" in Europe aspires to a Cadillac !!!!

If GM Detroit management think the same way as the website contributors, it would explain why GM was pushed into 4th place last year for worldwide car sales, beaten by Volkswagen, Toyota and now Hyundai/Kia

Edited by RT on 07/12/2013 at 20:01

Reply | Report as offensive | Link
Sat 7 Dec 2013 20:16
Chevrolet pulling out - Oh Deary me! - dan86

A Cadillac may be nice but its no BMW, Mercedes, Audi or Jaguar. its to little known outside North America. not many Europians aspier to own one.

Reply | Report as offensive | Link
Sun 8 Dec 2013 02:16
Chevrolet pulling out - Oh Deary me! - daveyK_UK

they are going to stop selling budget vauxhalls in europe?

This is the best car news I have read for a long time.

How long before the CAP guides start to take a hit?

Can we expect a fire sale on current stock?

I could never understand why GM thought they could charge more for the last Aveo than the Corsa?

They could have made Chevrolet work if they went for the budget market like Daewoo did; they could have been a real alternative to Dacia as they have an even bigger economy of scales.

Reply | Report as offensive | Link
Sun 8 Dec 2013 11:19
Chevrolet pulling out - Oh Deary me! - jc2
Except Oldsmobile no longer exists (actually it could be Buick), but certainly one of them.

I didn't say they were still built but GM still owns the names!

Reply | Report as offensive | Link
Mon 9 Dec 2013 03:05
Chevrolet pulling out - Oh Deary me! - SteveLee

The losses are paper ones - because GM Detroit charges GM Europe excessively for intellectual property and technology developed outside Europe - this is no different to all multinationals who "maximise" their head office profits and "minimise" their world-wide tax bills.

GM Europe equally gets little financial credit for development for features used for GM models around the world including the US.

Most GM cars, worldwide, sit on front-wheel drive platforms nowadays developed by GM Europe up to and including the Chevrolet Impala.

If GM Europe were shut, GM worldwide would follow very quickly.

Indeed, similar tactics were used by BMW to justify dumping Rover after they got what they wanted (LR expertise and the MINI brand), many of the expensive Rover write-downs "costing" BMW billions are still turning over a handsome profit for them today - the fact that they sold Land Rover for far more than they paid for the whole Rover group went unnoticed by the pro-BMW press! The (internal) price for BMW-sourced parts were hiked when Rover was doing the buying to ensure they ran at a "loss" – all the while the idea was to cast Rover as a blood-sucker - draining BMW to the brink of bankruptcy – when it was the other way round - BMW had to branch out of three box saloons into modern markets (Front-drive Hatches and SUVs) and needed the know-how and brands. At the time BMW bought Rover, Ford were readying a hostile takeover of BMW (and they weren't the only potential suitors) - buying Rover killed off all takeover activity. When BMW were ready to start dismantling Rover (just as MINI hit production readiness), the "English patient" myth soon took hold and no-one was surprised when Rover was thrown to the wolves with the Jewels in their crown (LR and Mini) stolen. Any patriotic Brit who drives a BMW product should hang their head in shame.

GM should use the Chevrolet brand as they originally intended - as a core value brand in Europe - much as Renault use Dacia. In the days of austerity, private buyers want value and good warranties. Badge snobs aren't going to buy Vauxhalls/Chevvies, Renaults/Dacias anyway - GM will be left without a "value" brand unless they want to complete by discounting Vauxhall/Opel - which is bad news for market image - Just look at Ford - despite often making the best products in their class - no-one in their right mind will pay anywhere near retail for a Ford. The VAG group understands this and that's why they have SEAT and Skoda to sit under the overpriced badge-snob versions of the same cars. Certain people are happy to pay 3K more for a car that's inferior to a Focus coz it has the "right" badge.

How much will it cost GM to introduce a new value brand in the future when they realise their mistake? Plus the cost and hassle of re-establishing dealer networks - it all smacks of pretty poor management.

Reply | Report as offensive | Link
Mon 9 Dec 2013 08:56
Chevrolet pulling out - Oh Deary me! - Collos25

But their value brand in Europe does not sell the customer is king and they do not want their products.

Reply | Report as offensive | Link
Mon 9 Dec 2013 09:35
Chevrolet pulling out - Oh Deary me! - RT

But their value brand in Europe does not sell the customer is king and they do not want their products.

And that's a fundamental difference between Europe and North America - over there they seem to blindly believe what the marketing hype wants them to believe whereas Europe is a lot more pragmatic and hard-nosed.

Good and bad, it's the product that defines the brand not the publicity and certainly not just the price.

Reply | Report as offensive | Link