GM axes Chevrolet brand in Europe to focus on 'respected' Opel and Vauxhall

General Motors (GM) has revealed it is to axe its Chevrolet brand in Europe, despite significant efforts to raise awareness of the marque across the continent.

The manufacturer said it will focus efforts on its "respected" Opel and Vauxhall brands, to reduce "market complexity" in the light of a "difficult economic situation" in Europe.

GM has been selling re-badged Daewoo models under the Chevrolet brand in Europe since 2005, positioning it as an entry-level, discount marque competing with the likes of Kia and Renault-owned Dacia.

It has also signed lengthy sponsorship deals with Premier League football clubs Liverpool and Manchester United, including a deal to become the latter’s shirt sponsor from the 2014/15 season – with both sponsorships understood to be unaffected by the announcement.

Sales have stalled, even in the buoyant UK new car market, where according to the SMMT Chevrolet’s sales are down 13% year-on-year. In comparison, Vauxhall has enjoyed a 10% growing in UK new car sales.

As a result, the decision has been taken to focus efforts elsewhere, including on the reintroduction of its premium Cadillac marque.

Dan Akerson, GM’s chairman and chief executive, said: "Europe is a key region for GM that will benefit from a stronger Opel and Vauxhall and further emphasis on Cadillac. For Chevrolet, it will allow us to focus our investments where the opportunity for growth is greatest.

"This is a win for all four brands. It’s especially positive for car buyers throughout Europe, who will be able to purchase vehicles from well-defined, vibrant GM brands," added Akerson.

GM confirmed it would continue to support Chevrolet with after-sales services for existing customers.

Discussion

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus
Brand Republic Jobs

subscribe now

Latest

Lynx tells men not to leave love to fate
HBO captures awkwardness of watching sex scenes with parents
Primark to open first US stores with Boston chosen as flagship location
Marketing spend on the up but a reality check is needed before celebrating
Top 10 ads of the week: Jackpotjoy and BT Broadband fend off Kevin Bacon
Lidl beats Tesco to 10m Facebook fans
Center Parcs ad banned for encouraging parents to take kids out of school
Coca-Cola, Cadbury and Amazon named top brands for targeting youth market
Leaked document shows Nokia to be rebranded as Microsoft Mobile
Nike lays-off hardware staff in move that casts doubt on future of FuelBand
Greenpeace says save the bees or humans will die
What brands need to know about changes to VAT and online downloads in 2015
Jimmy Savile victims urged to claim compensation in new ad campaign
UKIP launches biggest  ad campaign and stirs up 'racist' accusations
Apple boss Tim Cook provides voiceover on ad touting firm's renewed green commitments
John Lewis walks consumers through its history to celebrate 150 years of business
Waitrose boosts content strategy with 'Weekend Kitchen with Waitrose' C4 tie-up
Hottest virals: Cute puppies star in Pedigree ad, plus Idris Elba and Fruyo
Amnesty International burns candles to illuminate new hope
Toyota achieves the impossible by calming angry Roman drivers
Tom of Finland's 'homoerotic' drawings made into stamps
YouTube reveals user habits to appeal to 'older' marketers
Ex-M&S marketing chief Steven Sharp consulting at WPP
Wolff Olins reveals new CEO after Apple poaches Karl Heiselman
Glasgow offers £30,000 prize to best digital idea for 2014 Commonwealth Games
Google's revenues surge but shares drop as it grapples with transition to mobile
Facebook beats Twitter to most 'marketing friendly' social media site crown, says DMA
Fableists believe children like Finn should be outdoors enjoying life
Homebase, Baileys and Camelot join the line-up at Media360
MasterCard renews Rugby World Cup sponsorship to push cashless message