General Motors is pulling its Chevy brand out of Europe, reversing a decade-old sales strategy, as a revival at the carmaker’s Opel and Vauxhall divisions beats the US nameplate’s performance in the region.
Chevrolet will halt deliveries in Europe by the end of 2015 while remaining in Russia, GM vice chairman Steve Girsky said on a conference call today with reporters. Reorganization costs from the shift will total $700 million to $1 billion.
The move ends an effort by Detroit-based GM to use Chevy, one of America’s top-selling auto producers since it was introduced in 1911, to make up for losses in Europe generated by Opel and Vauxhall.
The two divisions have maintained their regional market share this year while Chevrolet’s has declined.
“Unacceptable” financial performance at the brand in the region contributed to the pullout, Girsky said. The revamp “eliminates some competition from one of their own brands,” said Juergen Pieper, a Frankfurt-based analyst at Bankhaus Metzler.
Market share
"But we need to keep a sense of proportion: Chevrolet has never been very successful in Europe, and there's no guarantee Opel will automatically get its market share."
GM rose as much as 1.6 percent and was trading up 0.3 per cent at $38.84.
– Bloomberg
