Chevrolet Europe

Chevrolet Europe Case Analysis

SEYDA HALIL

Bellevue University

MBA652: Marketing Strategy

Case Recap

Europe is globally one of the largest market of General Motors. According to GM’s report; revenue in 2003 which is US$ 27.5 billion is above the amount of the previous year 2002 which is US$23.9 billion.

After taking on part ownership of Daewoo Motor Company of Seoul, Korea in 2002, GM also started to control the management of automobile business. The GM Corporation has three main car brands which are Opel/Vauxhall, Saab, and GM Daewoo. Opel/Vauxhall is mostly sold in European Countries, especially in the UK. And 87.1 percent of GM Europe unit sales in the year 2003 consists of this brand. Opel/Vauxhall has 16 different models which are in small, compact and medium-size. Saab brand which has two models in medium size car segment is also sold in European Countries and accounted for 4.5 percent of unit sales in the same year. Third brand of General Motors, GM Daewoo which comprised 8 percent of GM Europe unit sales in the same year, with its 6 models (5 in small and 1 in medium size) is also sold 32 European countries.

The Daewoo which reached the amount of 230.000 unit sales in Europe in five years after its first leading into market under Daewoo Motor Company of Seoul, Korea lost reputation and declined to 100.000 unit sales in 2002. After GM took over the brand and company in 2002, the sales went up to 132.000 units in 2003.

Car market in Europe is very competitive and the leading automaker countries in the market are Germany, the U.K, Italy, France and Spain which 74 percent of new registrations in 2003 belongs to. They all have strong national reputations for quality, comfort, innovation and particular features. For examples, German cars are known as quality and technological. French brands are known as innovative and comfortable. Italian brands are...