General Motors' stated commitment to an orderly end to its Chevrolet as a retail brand in the UK and Europe will mean "little impact" on residual values.
Dean Bowkett, technical director and chief editor at data and insight provider EurotaxGlass’s Group, said: “We have already spoken to senior personnel within GM who have confirmed that warranties will be honoured and parts and service arrangements will be in place to satisfy the demand for repairs and maintenance of Chevrolet’s products going forward, many of which share common components with their sister brands anyway.”
“Our contacts at Chevrolet have assured us that they are planning an orderly close down, over an extended period.
"This approach will have a minimal effect on the dealer network because the majority are already dual-franchised with Vauxhall and as such are likely to remain the approved Chevrolet repair centre.
"We have also been informed that stock levels are already low which will negate the need for any fire sales from the brand during the transition period.”
GM announced this morning its Chevrolet brand will no longer have a mainstream presence in Western and Eastern Europe,
EurotaxGlass’s looked at sales volumes, channel mix, current residual values and parallels drawn from other high profile brand exits in the last 10 years.
It also allowed for the differentiation between overlapping products such as Captiva and Antara, which results in a different used buyer demand.