GM is Making Big Shifts and Refocusing in Europe

If you have ever taken a look at GM’s European strategy and been confused with their approach to targeting the market, you are not alone. Approaching with both Chevrolet and Opel/Vauxhall seemed difficult, and even General Motors itself has found it difficult to justify the two-pronged approach. In lieu of this realization, it seems like car buyers in Europe won’t be requiring oil changes for any new Chevrolets, as Chevy is being pulled from a majority of the European marketplace.

GM has planned to let Opel (or Vauxhall in the UK) represent its mass-market aspirations. Chevrolet will seemingly keep its presence in Russia and the Commonwealth of Independent States (CIS), and will continue to sell certain niche products in Easter and Western Europe. For example, the Corvette, which has long been sold in Europe through Cadillac dealerships, which is also for its own part currently “finalizing plans for expanding in the European market”. “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.”

The shift in strategy is expected to help GM gain a stronger foothold in the European market in the long run, but in the short term the restructuring will cost the company dearly. Like… between $700 million and $1 billion dearly. “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,” said Thomas Sedran, president and managing director of Chevrolet Europe. “We want to thank our customers and dealers for their loyalty to the Chevrolet brand here in Europe.”

Chevrolet is positioning themselves in strong markets where they can thrive. “We will continue to become more competitive in Korea,” said GM Korea President and CEO Sergio Rocha. “In doing so, we will position ourselves for long-term competitiveness and sustainability in the best interests of our employees, customers and stakeholders, while remaining a significant contributor to GM’s global business.”