Clearly, GM’s top suits missed the memo about the end of empire. While the artist formerly known as the world’s largest automaker clings to dreams of holding onto Opel with your (and German) tax money, the company has unveiled plan B: Chevy attacks! The Wall Street Journal [sub] reports that “Brent Dewar, recently named to head Chevy’s global operations, told reporters Friday that Chevy sales in Europe are expected to expand to one million from the 500,000 vehicles — or 2.5% of the market — sold in 2008. He didn’t provide a timetable for the growth target, but said new products — including Chevy Volt electric cars and Malibu sedans shipped from the U.S. — will fuel the effort.” Huh? “We’ve got to take this brand and truly make it global . . . a true relevant global participant,” Mr. Dewar said, admitting that the effort is “a work in progress.” Oh, so that’s what you call it . . .
So, the point is to increase sales of GM Daewoo cars in Europe? What will that make of the Chevrolet brand equity? The Chevrolet badged Daewoo cars are competing in the low bottom end of the market, not even in the Hyundai category, more in the likes of Kia and Russian and Indian imports. Brand dilution galore, I’d say…
Chevy will conquor Europe.
Buick will conquor China.
Cadillac will conquor Russia.
GMC will conquor The Heartland.
Don Quixote will…
The Chevy brand is already the seller of rebadged Daewoos all over the world. At this point, Chevy in the US is the outlier, selling unique models designed only for one market. Makes sense to rationalize the produce offerings, especially if GM is going to lose its global Opel sales. If in the end GM can boost US production volume by selling US made Chevys all over the world, all the better.
The point is in the branding. Hyundai and Kia never had any problems establishing a “new” brand in new markets. And keeping the Daewoo moniker wouldn’t have been any problems for GM either. They could have branded Daewoo as the cheap economy entry into the GM clan, a Scion for sensible people. But rebadging Daewoos as Chevrolets and hoping that nobody will notice that the american iron is substituted for korean cheap, speaks not only of dilution but also of delusion on an a grand scale. I can say that GM couldn’t possibly have done anything worse to damage the Chevrolet brand than that. In Europe, Chevrolet is a joke. The Chevrolet Matiz the Yugo of yore…
Chevy will conquor Europe.
Buick will conquor China.
Cadillac will conquor Russia
…and Hyundai will conquer the YSM.
Chevrolet Malibus to Europe? ROFL ROFL OMG WTF SRSLY? This reminds me of Buzz Hargrove’s delusional feverbabble of about six months ago: the Japanese would love to buy GM’s world-class Chevrolet Malibu, but they can’t because their mean ol’ invidious ol’ protectionist ol’ government has unfair import duties and taxes on American cars. If it weren’t for those unfair import duties and taxes*, why, the Japanese would be falling over themselves to throw fistfuls of ¥en at GM for Chevrolet Malibus.
*…and ridiculously excessive size and fuel consumption and turning circle for the needs of the market. And ridiculously insufficient equipment level. And…
In Sloan’s book he talked about the decision GM made to purchase then struggling Opel vs. exporting US brands to Europe. The decision was to get into the European market by owning a local brand which everyone there would view as a local company. That decision worked well. Coming back so many years later with a different decision is just part of the pattern of strategic muddle headedness which has plagued GM for decades now.
@Ingvar,
What brand equity? With the exception of a couple models here and there, there is very little “American iron” to associate with the Chevrole name in Europe. Most of Europe knows Chevrolet only as the seller of rebadged Daewoos and Suzukis.
IMHO, GM is now in the position with the Chevrolet brand in Europe that Hyundai/Kia were in the U.S. with a few years ago. If they can up their game GM has a growth opportunity. I get the impression that Opel is on par with similar cars as far as interior design and materials, so they do have it in them.
but they can’t because their mean ol’ invidious ol’ protectionist ol’ government has unfair import duties and taxes on American cars.
This is true, however. When will we stop being patsies for the world to take advantage of?
Too bad GM’s delusions of grandeur made it to the “new” GM.
Chevrolet is a very weak brand outside North America. The Corvette’s halo has long failed to translate to the rest of the lineup. This is a Volt story, they really are betting the farm on that thing, in Europe too now.
Without doubt there is a huge pent-up demand for Chevy in Europe. The French will roll over, Fiat are being eaten from the inside by the Cuckoo that is Chrysler, VW are distracted by trying to be Toyota, BMW clearly don’t have enough models, the opportunity is plain to see….isn’t it??
Lord have mercy. Chevrolets are something of a laughing stock around these parts – they couldn’t even be bothered renaming the models (take the truly miserable matiz lawnmower thing) after rebadging them with the rusty cross. A friend of mine was laughed at by teenage children while driving a hired Captiva. (“Can ye no’ afford a Land Rover” was the quote!) Sad considering opel (or vauxhalls in uk) are pretty respectable cars. Why attempt to sell off a decent division and try and flog utter crap to the uk and european public? Clearly no one in control of this company has a clue .
@kablamo
Saying the Chevrolet brand is weak outside North America is sort of the “glass is half empty” argument. I would argue the “glass is half full”, that Chevrolet doesn’t have the baggage internationally that it does in North America, hence the opportunity if (and I know this is a big “if”) they can play their cards right.
So let’s take a Chevy with a razor thin margin (or in the case of the Volt, likely a very negative margin) and pay to ship them oversees to a country with plenty of excellent local brands?
Anyone else hear Woody Woodpecker laughing while they read this article?
but they can’t because their mean ol’ invidious ol’ protectionist ol’ government has unfair import duties and taxes on American cars.
This is true, however. When will we stop being patsies for the world to take advantage of?
No, AFAIK there is no taxes/duties on imported cars.
http://www.customs.go.jp/english/tariff/2009_4/data/87.htm
Or motorcycles, for that matter. Harley owns a third of the big bike market in Japan.
@Ingvar
Selling American Chevy’s under the Chevrolet(read Daewoo) is brand dilution galore. You have simply no idea how American cars are seen in Europe. They are seen as worse than Chinese cars. SUVs are slightly different but SUVs are not good cars anyway.
IMHO GM secret plan was not to secretly sell Korean Daewoo’s under the Chevrolet brand but to secretly sell American Chevrolet’s
@lw
Isn’t Opel suppose to sell the Volt in Europe. Would still make sense even after selling Opel to the Russians
dwford : The Chevy brand is already the seller of rebadged Daewoos all over the world. At this point, Chevy in the US is the outlier, selling unique models designed only for one market. Makes sense to rationalize the produce offerings, especially if GM is going to lose its global Opel sales. If in the end GM can boost US production volume by selling US made Chevys all over the world, all the better.
I wouldn’t go as far as that last sentence, because the Korean-Chevies will hit a brick wall in Europe that Opel never saw: what sells well in Asia, South America, etc aren’t likely to fare well in Europe. Totally different markets with unique expectations out of their automobiles: Korean specials and the Malibu aren’t gonna cut it.
I think the TATA Indica’s inroads (or lack thereof) into Europe are a good indicator: Chevy’s (both Korean and American) are gonna have a looooong, uphill battle.
You guys should really check out ChevroletEurope.com. It’s the most poorly designed website I’ve seen in quite a while. The pictures are decent and the site design is useable (nothing more), but the grammar and writing ability in the captions are hilarious.
Also, take a look at the Cruze (next next NEXT big thing). It’s got limited options, VERY limited equipment (only one seat material is offered – gray fabric; the only non-premium paint color is red and you have to pay $800 to get a different color, meaning an assortment of grays), and only the top model has electric rear windows! There’s also only one gas engine and one diesel engine. This is their world-beating, global small car? Seriously?
take a look at the Cruze (next next NEXT big thing). It’s got limited options, VERY limited equipment (only one seat material is offered – gray fabric; the only non-premium paint color is red and you have to pay $800 to get a different color, meaning an assortment of grays), and only the top model has electric rear windows! There’s also only one gas engine and one diesel engine. This is their world-beating, global small car? Seriously?
Oh, pish-tosh. It’s every bit as good as a Civic. It’s better than a Civic. Better than a Corolla. It’s the bestest small car in the whole wide world. Why are you helping widen the perception gap? Why do you hate America? Why do you hate freedom?
I would hate to see the reviews of the Aveo in the European automotive press.
I think everyone knows that at least Detroit cars are better than what is seen in China. Heck, Chinese cars are not allowed to be sold in America due to poor crash standards.
Still, it is hard to find a more loathsome car than the Aveo. At least this crime was not engineered and designed in America.
GM is sorely mistaken if they think they are gonna jack up European sales by a half a million cars, constituting of their american offerings. Volume is in the cheap end of the market, and that spells GM Daewoo. As I have stated earlier, besides the American companies European branches, Opel/Vauxhall and Ford Europe, what sells in Europe whern it comes to American cars, are niche vehicles and vanity cars.
Niche vechicles like the Jeep Cherokee, Chrysler Voyager, an occasional Ford Econoline. And vanity cars, like the Ford Mustang, Hummer H3, Chrysler 300, and an occasional Corvette or Viper. American iron has a strong following in Europe, but it is in the mullet crowd, craving for the Camaro and such. It’s not big in numbers, but it is there. Sidelining all that, in favour of korean cheap, is discarding all and everything that made the brand unique in the first place. It is completely counter intuitive, counter productive, and plain old stupid.
So, what do they think they are gonna sell? The Malibu? I can think of very few people that would trade in their Audi, Volkswagen, Peugeot or even Opel for a Chevrolet Malibu. Besides the novelty value, there just are a lot of better offerings out there…
You have simply no idea how American cars are seen in Europe. They are seen as worse than Chinese cars. SUVs are slightly different but SUVs are not good cars anyway.
Possibly because Europeans’ only exposure to current US designed and built cars has been through Chrysler for quite some time. As fuel economy and environmental concerns in the US begin to mirror those in Europe it will be easier for GM and Ford to design models to sell in both markets.
Also, GM’s current offerings are about to be replaced all at once at the low end of the market, and if recent product introductions are an indication, there is reason to hope(I hate that word!) for the best.
The Volt in Europe!? GM is really into self-loathing these days.
Chevy Volt = Opel Ampera in Europe
Might as well roll out the volt for Europe. It has been introduced here a dozen times. I’m sure the Europeans don’t have anything that gets 235 miles per gallon over there. Is this another version of “if at first you don’t succeed, try, try again”? Chevy should worry about selling cars here in the US, first. VW has just made a bold statement about selling hundreds of thousands of cars here. It sound improbable, but at least they are solid in their homeland (number one in Europe).