Consequences of the Chevrolet withdrawal from the European market

The decision to withdraw the Chevrolet brand from the European market in 2015-2016 (in order to boost sales of the Opel brand on this continent, Opel and Chevrolet both being part of  the General-Motors group) will inevitably lead to lower production rates in the GM Korea plant, this plant provides most Chevrolet models sold in Europe. In 2013, 130 000 Chevrolet vehicles were sold in Europe (excluding Russia, Ukraine and Turkey), against 162 000 in 2012 and 173 000 in 2011. The peak was reached in 2007 with 205 000 sales. GM Korea produced 745 000 vehicles in 2013 (against 768 000 in 2012 and 789 000 in 2011). These figures do not include CKD vehicles delivered to some countries of the former Soviet Union, such as Ukraine and Uzbekistan.


The pattern of Chevrolet sales in Europe and production levels of the GM Korea plant are therefor following the same trend. With the removal of the 130 000 European sales expected for 2014 and 2015 GM Korea's production will undoubtedly  fall accordingly  over the next two years.


This phenomenon will be amplified by the production transfer of the Opel Mokka from Korea to Spain (in the second half of 2014), probably 40 000 units in 2014 and 80 000 units in 2015 and beyond. GM Korea will therefore lose the production of 170 000 vehicles in 2014 and 210 000 in 2015, which will lead to a reduction of its capacity.

 

14-20-1  


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