Skip to main content
Sister Publication Links
  • Automotive News
  • Automobilwoche
  • Automotive News Canada
  • Automotive News China
Subscribe
  • Subscribe
  • Newsletters
  • Login
  • HOME
    • Latest news
    • Automakers
    • Suppliers
    • New Product
    • Environment/Emissions
    • Sales By Market
    • On The Move
    • Auto Shows
    • Munich Auto Show
    • Geneva Auto Show
    • Paris Auto Show
    • Beijing Auto Show
    • Shanghai Auto Show
  • Features
    • Long Read
    • Interview of the Month
    • Focus on Electrification
    • Focus on Technology
    • Segment Analysis
    • Cars & Concepts
    • Supplier Spotlight
    • Europe By The Numbers
  • Opinion
    • Blogs
    • Commentary
    • Guest columnists
  • Photos
    • Photo Galleries
    • Geneva Photo Gallery
    • Beijing Photo Gallery
    • Frankfurt Photo Gallery
    • Paris Photo Gallery
    • Shanghai Photo Gallery
  • Europe By The Numbers
  • Car Cutaways
  • Resource Center
  • EVENTS
    • ANE Congress
    • ANE Rising Stars
    • ANE Eurostars
  • More
    • Publishing Partners
    • Social Media
    • Contact Us
    • Media Kit
    • About Us
    • Capgemini: All or nothing: Why circular business models require a holistic approach
    • Capgemini: Invent Head on automotive takeaways from CES 2023
    • Capgemini: Securing the industry's future through a radical rethink
    • Capgemini: Succeeding with the automated driving journey through AI
    • Capgemini: The circular economy is spurring new thinking on EV batteries
    • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
    • HEXAGON: Plugging into data is the only way to make winning EVs
    • PUBLICIS SAPIENT: The power of post-purchase: How automakers can maximize customer lifetime value
    • TOYOTA EUROPE: Toyota Motor Europe's next-gen C-HR: sensory innovations revealed by Vehicle UX leader
    • TUV Rheinland: Ideas, services and certifications for smart mobility
    • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
    • Toyota Europe
    • UFI Filters
    • SENSEAUTO: Driving the future of mobility with SenseAuto: The AGI power behind the wheel
    • Facebook
    • Instagram
    • LinkedIn
    • Twitter
MENU
Breadcrumb
  1. Home
  2. Automotive News Europe
June 10, 2013 01:00 AM

Chevrolet slumps in Europe

GM subsidiary fails to benefit from rising sales of value brands

Nick Gibbs
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    Weak sales of the Spark and Aveo caused the Cruze compact (shown) to become Chevrolet's best seller in Europe. Cruze sales were up 5% to 12,441 units through four months, according to data from JATO Dynamics.
    NEW E-MAGAZINE

    This story is from the current issue of the Automotive News Europe monthly e-magazine, an exciting new product that is also available to read on our iPhone and iPad apps.You can download the new issue as well as past issues by clicking here.

    Chevrolet -- General Motors' best-selling brand globally -- is falling further behind rivals in Europe as the region's buyers turn their backs on the marque's aging product lineup.

    Chevrolet is positioned as a value-for-money brand in Europe and its Spark/Matiz minicar and Aveo subcompact account for almost half of the brand's volume.

    As Europe plunges deeper into economic crisis, car buyers are increasingly turning to affordable smaller vehicles -- a trend that should help Chevrolet.

    Only it isn't.

    Sales of the Spark/Matiz declined 37 percent to 12,245 units from January to April, while the Aveo declined by 44 percent to 10,235, according to figures from JATO Dynamics.

    Steep declines of Chevy's best-selling models in Europe pushed down the brand's sales in the region by 33 percent to 45,706 in a total market down 7 percent, according to industry body ACEA. Chevy's market share was 1.1 percent, down from 1.5 percent during the same period last year.

    Aging products

    Meanwhile, budget rivals such as Dacia and Kia posted gains in Europe during the first four months. Dacia's volume rose 18 percent to 90,162 while Kia's sales were up 4 percent to 112,795, equivalent to a 2.2 percent and 2.7 percent share, respectively.

    Analysts say an aging product lineup and lack of focus on Europe have hit Chevrolet's vehicle sales.

    Most of the brand's cars sold in Europe are built by GM Daewoo in South Korea. Hyundai and Kia have design and engineering centers in Germany and car factories in the Czech Republic and Slovakia. Renault's Dacia brand is based in Romania and closely tied with Renault's headquarters in Paris.

    "Chevrolet isn't helped by products that aren't going to set the world on fire compared with Hyundai and Kia," said IHS Automotive senior analyst Ian Fletcher.

    Jonathan Poskitt, an analyst at LMC Automotive, said Chevrolet's major products are losing sales because they are getting old. "The Spark and Aveo are high-volume models for the brand, but they are past their peak market share," he said.

    Chevrolet cars are not as fuel efficient as newer models from competitors. High fuel prices and tax regimes that penalize vehicles with high CO2 emissions mean that fuel economy is an increasingly important factor for sales success in Europe.

    The average CO2 emissions for Chevrolet's new-car fleet in Europe was 141 grams per kilometer in 2012, according to JATO Dynamics. The figure placed Chevrolet No. 18 in a ranking of 20 manufacturers, behind BMW and Mercedes-Benz.

    Opel competition

    Analysts say overlapping products with GM's Opel and Vauxhall brands also hurt Chevrolet.

    IHS analyst Fletcher highlighted the overlap between models such as the Chevrolet Trax/Opel Mokka and the Chevrolet Captiva/Opel Antara.

    "There are certainly some mixed messages in its range," he said.

    Chevrolet declined to comment for this article but Opel says the two brands do not attract cross-shoppers. "Opel and Chevrolet have deliberately been given a distinctive brand positioning and aim at different customers," it said in a statement last month. "Studies show that the risk for each brand to lose customers to the other brand is low."

    Fletcher said price discounting in Europe's weak auto market has brought Opel closer to Chevrolet. Opel vehicles are priced higher but customers can end up paying similar prices to a cheaper Chevrolet after getting a significant discount.

    Globally, Chevrolet is doing well. GM recently announced record first-quarter sales of 2.36 million for the brand, up 4 percent on the year before.

    But Chevrolet will continue to struggle in Europe for years to come, analysts say.

    IHS forecasts that Chevrolet sales will continue to fall in the region until 2016, which is when the Spark and the Cruze compact are scheduled to be replaced.

    Chevrolet sales fell 3 percent to 172,000 cars in Europe last year, according to ACEA. The brand's EU sales will rise to 200,000 in 2016 on new products, IHS predicts, but not before hitting a low of 148,000 in 2015.

    RECOMMENDED FOR YOU
    EU trade chief to tell China that retaliation is a bad idea
    Recommended for You
    EU trade chief to tell China that retaliation is a bad idea
    EU trade chief to tell China that retaliation is a bad idea
    Joerg Lamparter Mercedes 2023 Eurostar
    2023 Eurostar winner Joerg Lamparter of Mercedes-Benz
    Mark Zhou Nio 2023 Eurostar
    2023 Eurostar winner Mark Zhou of Nio
    Dr. Kai Yu, Founder and CEO of Horizon Robotics
    Sponsored Content: Interview with Dr. Yu Kai, Founder and CEO of Horizon Robotics
    Sign up for free newsletters
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Get Free Newsletters

    Sign up and get the best of Automotive News Europe delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    SUBSCRIBE TODAY

    Get 24/7 access to in-depth, authoritative coverage of the auto industry from a global team of reporters and editors covering the news that’s vital to your business.

    SUBSCRIBE NOW
    Connect with Us
    • Twitter
    • Facebook
    • LinkedIn
    • Instagram

    Founded in 1996, Automotive News Europe is the preferred information source for decision-makers and opinion leaders operating in Europe.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI  48207-2997
    Tel: +1 877-812-1584

    Email Us

    ISSN 2643-6590 (print)
    ISSN 2643-6604 (online)

     

    Resources
    • About us
    • Contact Us
    • Advertise with us
    • Advertise with Us
    • Ad Choices
    • Sitemap
    Awards
    • Rising Stars
    • Eurostars
    • Leading Women
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Automotive News Europe
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • HOME
      • Latest news
      • Automakers
      • Suppliers
      • New Product
      • Environment/Emissions
      • Sales By Market
      • On The Move
      • Auto Shows
        • Munich Auto Show
        • Geneva Auto Show
        • Paris Auto Show
        • Beijing Auto Show
        • Shanghai Auto Show
    • Features
      • Long Read
      • Interview of the Month
      • Focus on Electrification
      • Focus on Technology
      • Segment Analysis
      • Cars & Concepts
      • Supplier Spotlight
      • Europe By The Numbers
    • Opinion
      • Blogs
      • Commentary
      • Guest columnists
    • Photos
      • Photo Galleries
      • Geneva Photo Gallery
      • Beijing Photo Gallery
      • Frankfurt Photo Gallery
      • Paris Photo Gallery
      • Shanghai Photo Gallery
    • Europe By The Numbers
    • Car Cutaways
    • Resource Center
    • EVENTS
      • ANE Congress
      • ANE Rising Stars
      • ANE Eurostars
    • More
      • Publishing Partners
        • Capgemini: All or nothing: Why circular business models require a holistic approach
        • Capgemini: Invent Head on automotive takeaways from CES 2023
        • Capgemini: Securing the industry's future through a radical rethink
        • Capgemini: Succeeding with the automated driving journey through AI
        • Capgemini: The circular economy is spurring new thinking on EV batteries
        • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
        • HEXAGON: Plugging into data is the only way to make winning EVs
        • PUBLICIS SAPIENT: The power of post-purchase: How automakers can maximize customer lifetime value
        • TOYOTA EUROPE: Toyota Motor Europe's next-gen C-HR: sensory innovations revealed by Vehicle UX leader
        • TUV Rheinland: Ideas, services and certifications for smart mobility
        • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
        • Toyota Europe
        • UFI Filters
        • SENSEAUTO: Driving the future of mobility with SenseAuto: The AGI power behind the wheel
      • Social Media
        • Facebook
        • Instagram
        • LinkedIn
        • Twitter
      • Contact Us
      • Media Kit
      • About Us