In an effort to strengthen its European operations, automaker General Motors has decided to withdraw one of its signature brands from the region, the company announced Thursday morning.
Citing Europe’s “difficult economic situation,” GM said that it is largely pulling Chevrolet from Western and Eastern Europe, a change that will take effect beginning in 2016. While Chevrolet, which GM called the fourth-largest global automotive brand, will no longer have a “mainstream presence” in Europe, GM said it will still offer select “iconic” Chevrolet vehicles — like the Corvette — throughout Europe. The Chevrolet brand will also still have a “broad presence” in Russia and the Commonwealth of Independent States, the automaker said.
GM said that the move will help its Opel and Vauxhall brands and reduce the complexity and competition associated with having both Opel and Chevrolet in Europe, because the brands aren’t as clearly defined as they are in Russia and the CIS.
According to GM’s most recent earnings report, European operations brought in a negative $214 million in the third quarter of 2013. The Opel/Vauxhall segment accounted for 64% of GM’s European sales, with 249,000 Opel/Vauxhall vehicles sold in the three months ending September 30. Meanwhile, just 138,000 Chevrolet vehicles were sold in Europe during that same period, a figure that accounts for 35.6% of GM’s third quarter European sales.
Read more:: GM Pulling Most Of Chevrolet Out Of Europe, But Leaving Corvette - Forbes
Citing Europe’s “difficult economic situation,” GM said that it is largely pulling Chevrolet from Western and Eastern Europe, a change that will take effect beginning in 2016. While Chevrolet, which GM called the fourth-largest global automotive brand, will no longer have a “mainstream presence” in Europe, GM said it will still offer select “iconic” Chevrolet vehicles — like the Corvette — throughout Europe. The Chevrolet brand will also still have a “broad presence” in Russia and the Commonwealth of Independent States, the automaker said.
GM said that the move will help its Opel and Vauxhall brands and reduce the complexity and competition associated with having both Opel and Chevrolet in Europe, because the brands aren’t as clearly defined as they are in Russia and the CIS.
According to GM’s most recent earnings report, European operations brought in a negative $214 million in the third quarter of 2013. The Opel/Vauxhall segment accounted for 64% of GM’s European sales, with 249,000 Opel/Vauxhall vehicles sold in the three months ending September 30. Meanwhile, just 138,000 Chevrolet vehicles were sold in Europe during that same period, a figure that accounts for 35.6% of GM’s third quarter European sales.
Read more:: GM Pulling Most Of Chevrolet Out Of Europe, But Leaving Corvette - Forbes
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