AM Online

Chevrolet UK in talks with network ahead of 2015 brand termination

Chevrolet will cease to exist as a retail brand in the UK by the end of 2015, General Motors has announced.

In a conference call today GM vice chairman Steve Girsky said it will end its presence in Europe due to a challenging business model and the economic difficulties in the continent. GM will focus on the Opel and Vauxhall brands- and select iconic vehicles, such as the Corvette – in western and eastern Europe.

Chevrolet UK heard of the decision at 5am today. It has been in touch with its franchised board and the dealer network in the hours since and, a spokesman, said begin to discuss the options more of which will be known about in the next month or into January.

"Our commitment is to meet our contractural obligations to the end of 2015. We will discuss on a case-by-case basis what our dealers want to do," he said. ""The immediate priority is to help them sell cars and support customers." Authorised repairers, he said, will probably be given the opportunity to continue.

AM understands stock levels are low meaning there is little likelihood of 'fire sales'.

"We believe this is a win for all of our brands here in Europe and around the globe as GM will benefit from a stronger Opel/Vauxhall," Girsky said.

Pulling Chevrolet from Europe "will help us to accelerate progress in the region," he said.

"Unacceptable” financial performance at the brand in the region contributed to the pullout, Girsky said.

“Europe is a key region for GM that will benefit from a stronger Opel and Vauxhall and further emphasis on Cadillac,” said GM chairman and CEO Dan Akerson. “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.”

Cadillac will enhance and expand its distribution network over the next three years as it prepares for numerous product introductions.

Thomas Sedran, president and managing director of Chevrolet Europe, said: "Our customers can rest assured that we will continue to provide warranty, parts and services for their Chevrolet vehicles, and for vehicles purchased between now and the end of 2015.”

In the UK Chevrolet sales peaked at 18,660 in 2009 (when it achieved its best market share of 0.94%), but since then have declined year-on-year. 2012 sales were 13,476 (0.66% share).

To November this year they were 11,281 units and a market share of 0.53%.

The number of franchised outlets is currently 72. At its peak in 2007 it had 96. 70% of the network are co-branded with Vauxhall. typically by the larger dealer groups.

AM100 groups such as Marshall, Pentagon, Peter Vardy, Vertu and Caffyns ceased representing the brand since 2012.

In September Sedran acknowledged Chevrolet's problems in a highly competitive market: "We need to appeal more to younger customers to help differentiate our cars from Opel.

"The fact is we are not among the top five when people are choosing a car. We will concentrate on our brand values which are expressive design, value for money and a good price. We will push the fact that Chevrolet enables people to stay connected and that's very important for young buyers."

Business analyst Jay Nagley, manging director of Redspy, told AM: "At present people can go into a dealer for a Chevrolet and be sidetracked by a great deal on the equivalent Vauxhall.

"The question remains open as to whether the Corvette is a halo car or a counter-productive distraction."

GM’s losses in Europe since 1999 have exceeded $18 billion, including a $214 million deficit in Q3. The carmaker began selling Chevrolet models in Europe in 2005, re-badging low-cost vehicles made by its Daewoo division in South Korea, and it came close to selling Ruesselsheim in Germany to Canadian car-parts maker Magna International in 2009 as it worked towards becoming solvent.

A spokesman for Chevrolet says the decision does not threaten its long-term sponsorship deals with Liverpool and Manchester United and that the partnerships will be exploited to grow awareness of the brand globally. The marque starts a seven-year shirt sponsorship of United from the 2014/15 season and signed a four-year 'official partner' deal with Liverpool last July.



If you are not a registered user your comment will go to AM for approval before publishing. To avoid this requirement please login.

Comment as guest


Login  /  Register

Comments

  • c u jimmy - 06/12/2013 17:28

    Only a few months ago as reported in AM Andy Higgins was telling dealers to up there game and invest in the franchise.
    feel sorry for anyone who listened .

    Reply as guest

    Login  /  Register
    • sgcb - 09/12/2013 09:39

      @c u jimmy -What about the Manchester United sponsorship deal !!!!!!!

      Reply as guest

      Login  /  Register
    • tomseymour - 14/01/2014 10:38

      Reply as guest

      Login  /  Register
  • Racer - 18/12/2013 13:35

    Searched in vain for any suggestion that manufacturer will be compensating dealers for costs incurred in maintaining franchise, specialist tools, training,advertising and pursuing an alternative franchise ?

    Reply as guest

    Login  /  Register
  • pete`cope - 11/01/2014 20:52

    chevelot`are`the`best`cars`i`have`owned``its`a`shame`they`are`leaving`uk

    Reply as guest

    Login  /  Register
  • Julien Wyatt - 14/01/2014 10:31

    I purchased a brand new Chevrolet Aveo LTZ in July 2013. With Chevrolet stopping in the UK as of the end of 2015, what does this means in terms of parts etc? Just a little concerned here, this is a bit of a sucker punch really as surely they should honour customer finances etc, this has been causing me a bit of stress recently...as for the other half, well!! Any advice will VERY much appreciated here

    Reply as guest

    Login  /  Register
    • tomseymour - 14/01/2014 10:39

      @Julien Wyatt - Hi Julien - it is very likely parts will continue to be available for customers who have already bought Chevrolet's in the UK. It's also likely the main dealer service network will remain in place too.

      Reply as guest

      Login  /  Register
    • Julien Wyatt - 15/01/2014 09:28

      @tomseymour - One would very much hope that the "likelihood" of the main dealer service network remaining in place does indeed become a certainty - as per the above comment posted by G60Tim, how will Chevrolet honour the warranty if the main dealer service does NOT remain. Thank you for prompt response guys, always appreciated.

      Reply as guest

      Login  /  Register
  • G60Tim - 14/01/2014 10:39

    Julien, GM has guaranteed availability of Chevrolet parts for 10 years and says all warranties will be honoured. You might also expect the Chevrolet service network to continue in some form for a while after the sales have ended. For further info try http://www.chevrolet.co.uk/contact/

    Reply as guest

    Login  /  Register
  • Craig wilson - 23/01/2014 20:24

    This means my car will be worth even less,I have lost over 3k in 2yrs as it is.time to cut my losses and get rid. I wish I had never bought the thing.

    Reply as guest

    Login  /  Register
  • Darren Gibson - 15/02/2014 11:15

    Get rid of your chevrolet a ASAP we owned one trouble free for 3 year we bought it new in 2010 . When our chevrolet dealer closed in 2013 we were unable to get any parts any where for our car . We were forced to sell it in dec 2013 because we could not get parts ie wiper blades and tyres . Chevrolet will not supply parts only what they have left in stock . Please sell now while prices are still reasonable on chevrolets

    Reply as guest

    Login  /  Register
  • John Barker - 16/05/2014 12:25

    Who will service Chevrolet cars after the end of 2015,particularly the Volt?

    Reply as guest

    Login  /  Register
    • G60Tim - 16/05/2014 12:35

      @John Barker - A network of Chevrolet authorised repairers will continue to several years after the sales end - most likely the dealers currently selling them.

      Reply as guest

      Login  /  Register
  • TheDefJamm - 16/05/2014 19:08

    The problem here is that GM where too lazy with the Chevrolet brand. What did they expect from sales when there was next to no advertising done to make people aware that the brand was available in the UK!??
    Surly if this was done, then Chevrolet would have easily been able to compete with the likes of Kia, Hyundai, and Proton in the UK!
    The market may be crowded, but I feel there was still a place for Chevrolet in the UK and Europe if more effort was put in.

    Reply as guest

    Login  /  Register
  • Sam Wouters - 23/08/2014 21:34

    I don't understand GM's reasoning. They have not enough invested a lot in making Chevrolet popular and known enough by the European peoples. Now when they decide to stop selling Chevrolet in Europe, I see a Chevrolet around each corner because they are cheap and amazing good cars, one of the best price-quality cars. I think it's now the time to make Chevrolet even more popular and well known in Europe in stead of stop selling this cars. And GM says that they want make Opel and his other brands stronger in Europe with this move. But at the same time they have closed important Opel factories in Europe. Can someone tell me the logic behind this?

    Reply as guest

    Login  /  Register
  • Geoff B - 16/08/2015 16:35

    I own a Chevrolet Captivia 2011 plate. With hindsight maybe I would have thought twice about buying if I had know they where pulling out of the UK.thought twice. this withdrawal will have significant impact on resale/part exchange. plenty Chevies around so why dump us ?????

    Reply as guest

    Login  /  Register
  • keith Spooner - 30/09/2015 13:31

    I am surprised that Chevrolet are pulling out of the UK, as people have said they have not done enough to get the Publics attention regarding there product, IE the volt EREV as I was seriously thinking of buying one next year as it seems to be a very good car.

    Reply as guest

    Login  /  Register
  • Claire gibbs - 01/11/2015 13:00

    Just seen a 2014 Chevrolet Spark Ltzwith 5k on clock in. A dealer for £3500 . Chevrolet now are officially worthless in the UK . This is a terrible shame they really were not a bad car

    Reply as guest

    Login  /  Register
  • Andy - 02/08/2016 20:16

    Chevrolet's in UK were just rebadged Daewoo's and they cheapened the once proud Chevrolet name.

    Reply as guest

    Login  /  Register
  • Tim W - 23/03/2017 01:23

    Bought a 63 plate Captiva LTZ, a year out of guarantee transfer box went with only 33140 miles on the clock. £4200 just for the part Contacted GM UK dint want to know - contacted local so called main dealer didn't want to know. I would trust them to honour anything, with customer support like that the sooner they leave Europe the better

    Reply as guest

    Login  /  Register