GM satisfied with European turnaround pace image

The No. 1 US automaker has decided that major transformations are in order for its European business to finally cut years of losses. So, the company decided to pull out the Chevrolet brand and focus on the Opel/Vauxhall unit instead.

According to the automaker, the turnaround plan is moving as planned, with the transformations full steam ahead.Now, the company announced that most of the former Chevrolet dealers in Europe have completed their transition to Opel models.

The US group, now the third largest automaker in the world, decided to axe the Chevrolet brand in Europe (except for Russia) to concentrate on the German brand Opel (and its British sibling Vauxhall) to stop losses. The brand was also pulled out because the internal competition eroded profitability at both units.

“The dealer transition from Chevy to Opel is working extremely well; 85 percent have converted to selling only Opel,” said the chief financial officer of the group’s Opel division. “Opel showrooms will become bigger,” he added. “For us this is a really good opportunity to strengthen the Opel brand. We will try to capture customers who were in the low-price segment (of the market).”

The executive, Michael Lohscheller, added that Opel will bridge the gap by designing and selling a range of vehicles that targets the usual European buyer of Chevrolet cars.

Via Reuters