Even in 2007, before the recession hit, Chevrolet’s then managing director Rory Harvey said the brand was battling a perception problem, with 73% of people in the UK thinking the brand stood for big, gas-guzzling American cars.
A Chevrolet dealer, which gave up the brand due to the requested future investment costs, told AM: “I’m not sure the perception of the quality of US brands will ever be well received in the UK.
“You have to question why Kia and Hyundai reached for the stars while Chevrolet failed to take off. All entered the market with value-focused products, but Chevrolet’s brand never moved on.
“The biggest issue the network will have after 2015 is with the poor dealers who have invested in the larger showrooms for the future.”
Dealers have a bit of time before vehicle imports stop next year to look at their options and prepare their customers for when new cars are no longer available.
EurotaxGlass’s believes there will be “little impact” on residual values. Dean Bowkett, technical director and chief editor at the data and insight provider, 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, many of which share common components with their sister brands anyway.
“Our contacts at Chevrolet have assured us that they are planning an orderly closedown 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 are likely to remain the approved Chevrolet repair centre.
“Chevrolet stock levels are already low, which will negate the need for fire sales during its run-down period.”
According to a Chevrolet spokesman, most dealers had invested in the latest corporate identity standards and 20% of the network are solus sites. The standard showroom size varies between 125 and 200 square metres, depending on sales targets.
Dealers that have invested will be looking at potential brands that could fit. SsangYong is already actively pursuing Chevrolet businesses to talk about a potential partnership, although the franchise is likely to be too small for the capacity of most Chevrolet sites.
GoldenBow - 13/08/2015 21:32
GM where very lazy with the Chevrolet brand. They didn't spend enough on advertising etc. I bet most people didn't even know you could get Chevrolet's in the UK. They brought it to Europe as a 'budget' brand to run alongside the Vauxhall/Opel cars. However, the prices did not reflect this. The Chevrolet cars where still up there at top prices. If they had stuck to their original plan and really made Chevrolet a budget brand in the UK, then they would really have given the likes of Hyundai, Kia, Suzuki, and Skoda a run for their money. Not to mention Proton and Dacia! (I can not believe Chevrolet are leaving the UK while-especially- the likes of the last two companies still remain) Dacia is thriving from using spare parts of Renault cars, so why couldn't GM do that with Vauxhall/Opel parts on Chevrolet's? That way, they could have made Vauxhall/Opel a more premium brand while slotting Chevrolet into the mainstream/budget category.