Jump to content
  • William Maley
    William Maley

    General Motors Will Remain In Europe As A Niche Player

    Sign in to follow this  

      What does GM plan on doing in Europe after Opel and Vauxhall head off to PSA?

    As General Motors begins to close the sale of Opel and Vauxhall to PSA Group, there are questions as to what GM will do in the European market afterwards. According to Automotive News, GM is planning to become a niche brand with selling Cadillac models, along with the Chevrolet Camaro and Corvette.

    “That is the plan at this time, to continue with those models and brands in Europe. We continue to grow the Cadillac brand. We’ll continue to do that in a very disciplined fashion,” said GM CEO Mary Barra on a conference call this morning.

    Cadillac has been trying to make end roads into Europe for a decade with middling success. Last year, Cadillac's 45 dealers in Europe (mostly in Germany and Switzerland) sold 781 vehicles, up 33 percent when compared to 2015. The brand has the goal of selling 5,000 vehicles yearly in Europe by the end of this decade. This includes sales of the Camaro and Corvette which are doing much better - more than 1,800 models sold last year. 

    Source: Automotive News (Subscription Required)

    Sign in to follow this  


    User Feedback

    Recommended Comments

    Yawn, They are going to have to change the dealership experience and marketing if they are going to grow and become a sales force in Europe.

    I hope they truly build some class leading dealerships with service to match.

    Share this comment


    Link to comment
    Share on other sites

    I am glad we know and have an idea of GM's plan for Europe. That will take some work to build on Cadillac. I heard people discussing elsewhere that Buick may go to Europe too. Who knows ?  GM is playing a different game and a new game. 

    Share this comment


    Link to comment
    Share on other sites

    Pessimism is high with some I see. 

    Look the bottom line is that GM, as a foreign company, has a hard time breaking even with Opel/Vaux, let alone making a profit.. as evidenced by the 17 years of profit loss. Think about the fact that they have LOST $20 Billion since 2000. That's not chump change.. and it has more to do with the Unions over there and its close connection with the gov'ts and brand loyalty than anything else. See the fact that Ford has a hard time as well. I venture to say that had GM not had Opel last year.. they would have pulled in $14 Billion gross as opposed to $12B. The loss of 1.2 Million units can be picked up too.. even if they simply looking to expand incrementally in the US, China, S. Korea and S. America. Hell.. GM could pick up about 500K sales alone just by going back into a fleet sales.. despite their profits not being as high.. they still could make an ACTUAL PROFIT off of them. 

    Of course I see the positive. What Wall St, enthusiasts, and realists alike have wanted for the last 20 years.. for GM to stop chasing sales and chase profits allowing for better products. I also find it silly to think that their engineering will suffer since airplanes exist, allowing them to, at will,still go the ring.. and headhunters exits..allowing them to hire who they like. Lastly.. if size is an issue.. GM still has the option of simply merging with FCA and instantly being #1 again

     

    Last year GM sold 9.97 Million.. putting them in #3 behind VW and Toy.. and slightly ahead of Rena/Nissan at 9.96 The loss of 1.2 Million would result in them having been at 8.77 last year still keeping them at #4. Keep in mind that this still resulted in GM being more profitable than almost all.

    • Upvote 1

    Share this comment


    Link to comment
    Share on other sites

    I agree with @Cmicasa the Great that this sale will work in GM's favor. Yes as @Drew Dowdell has stated, GM did play a financial shell game with Opel/Vauxhall and I think focused on the engineering gain. That has run it's course and with a focus on profits and a global platform global sales of select name brands. GM long term will grow and do ever better.

    We all agree that there are far too many nameplates and production capacity around the world. Europe is not the growth market that China is and GM can do much better by servicing China, North America and South America better as they then grow with a profitable plan Europe.

    • Upvote 1

    Share this comment


    Link to comment
    Share on other sites

    781 Cadillacs sold all year?  Ouch.   Not really even worth trying.

    Dumping Opel/Vauxhall was the right move though.  Shed those brands and legacy costs, focus on other markets where you make money.

    • Upvote 1

    Share this comment


    Link to comment
    Share on other sites
    1 hour ago, smk4565 said:

    781 Cadillacs sold all year?  Ouch.   Not really even worth trying.

    Dumping Opel/Vauxhall was the right move though.  Shed those brands and legacy costs, focus on other markets where you make money.

    Shedding the money bleeding division will help them focus on growing all markets including Europe for GM divisions. I see Chevy and Cadillac all over Europe and doing better once the money bleeding O/V division is gone.

    Share this comment


    Link to comment
    Share on other sites


    Join the conversation

    You can post now and register later. If you have an account, sign in now to post with your account.
    Note: Your post will require moderator approval before it will be visible.

    Guest
    Add a comment...

    ×   Pasted as rich text.   Paste as plain text instead

      Only 75 emoji are allowed.

    ×   Your link has been automatically embedded.   Display as a link instead

    ×   Your previous content has been restored.   Clear editor

    ×   You cannot paste images directly. Upload or insert images from URL.




  • Similar Content

    • By William Maley
      While the focus on the electric vehicles have been on the ultra plush and quick models from the likes of Tesla, Audi, and Jaguar, there is a lot of work being done for electric delivery vans. The combination of reduced maintenance, low fuel costs, and an abundance of torque to deal with heavy loads make them a perfect to do deliveries in urban areas. Rivian is the most-well known player here with plans to build out a fleet of electric vans for Amazon. Another player is ready to join the fight.
      Reuters reported yesterday that General Motors is working on a electric van for the commercial market. Five sources reveal that the van - codenamed BV1 - is expected to go into production late next year. It is expected to use Ultium battery technology that GM first talked about back in March. Utilizing this could solve one of the big issues with EVs, price. By switching Cobalt (expensive) for Aluminum (less expensive), GM says it will drop the cost of a battery to $100 per kilowatt-hour - making it around the same cost as regular gas powered van. Analysis done last year put the kilowatt-hour cost of a battery at $159. 
      One item still being debated internally is whether the van will be sold as Chevrolet, GMC, or a new brand. 
      When asked by Reuters, GM said it is “committed to an all-electric future and is implementing a multi-segment, scalable EV strategy to get there. At this time, we do not have any announcements to make regarding electric commercial vehicles.”
      GM isn't the only company getting on the electric van train. Ford has announced plans for an electric version of the Transit to launch in 2022, and British startup Arrival which has the backing of Hyundai, currently has an order of 10,000 vans from UPS.
      Source: Reuters

      View full article
    • By William Maley
      While the focus on the electric vehicles have been on the ultra plush and quick models from the likes of Tesla, Audi, and Jaguar, there is a lot of work being done for electric delivery vans. The combination of reduced maintenance, low fuel costs, and an abundance of torque to deal with heavy loads make them a perfect to do deliveries in urban areas. Rivian is the most-well known player here with plans to build out a fleet of electric vans for Amazon. Another player is ready to join the fight.
      Reuters reported yesterday that General Motors is working on a electric van for the commercial market. Five sources reveal that the van - codenamed BV1 - is expected to go into production late next year. It is expected to use Ultium battery technology that GM first talked about back in March. Utilizing this could solve one of the big issues with EVs, price. By switching Cobalt (expensive) for Aluminum (less expensive), GM says it will drop the cost of a battery to $100 per kilowatt-hour - making it around the same cost as regular gas powered van. Analysis done last year put the kilowatt-hour cost of a battery at $159. 
      One item still being debated internally is whether the van will be sold as Chevrolet, GMC, or a new brand. 
      When asked by Reuters, GM said it is “committed to an all-electric future and is implementing a multi-segment, scalable EV strategy to get there. At this time, we do not have any announcements to make regarding electric commercial vehicles.”
      GM isn't the only company getting on the electric van train. Ford has announced plans for an electric version of the Transit to launch in 2022, and British startup Arrival which has the backing of Hyundai, currently has an order of 10,000 vans from UPS.
      Source: Reuters
    • By William Maley
      This week, Hagerty obtained a document from General Motors' executive director in charge of program management, Michelle Braun that says development on future car and truck programs has been paused due to the COVID-19 outbreak. But the document also mentions some intriguing information on upcoming powertrains for the C8 Corvette. Here are the details,
      Corvette Z06: 5.5L DOHC V8 known as the LT6 that will produce 650 horsepower and 600 pound-feet of torque. No mention of any type of forced-induction. Corvette Gran Sport: 6.2L OHC V8 with a hybrid system that's expected to produce 600 horsepower and 500 pound-feet of torque. Corvette ZR1: Twin-Turbo 5.5L DOHC V8, dubbed LT7. Output is expected to be 850 horsepower and 800 pound-feet. Corvette Zora: The powerhouse of the C8, it will take the Twin-Turbo LT7 and augment with a hybrid system. This is expected to produce 1,000 horsepower and 975 pound-feet of torque. Hagerty's report says the rollout of the new engines will begin in 2022 with the LT6, but the COVID-19 outbreak may push the plans back.
      Source: Hagerty

      View full article
    • By William Maley
      This week, Hagerty obtained a document from General Motors' executive director in charge of program management, Michelle Braun that says development on future car and truck programs has been paused due to the COVID-19 outbreak. But the document also mentions some intriguing information on upcoming powertrains for the C8 Corvette. Here are the details,
      Corvette Z06: 5.5L DOHC V8 known as the LT6 that will produce 650 horsepower and 600 pound-feet of torque. No mention of any type of forced-induction. Corvette Gran Sport: 6.2L OHC V8 with a hybrid system that's expected to produce 600 horsepower and 500 pound-feet of torque. Corvette ZR1: Twin-Turbo 5.5L DOHC V8, dubbed LT7. Output is expected to be 850 horsepower and 800 pound-feet. Corvette Zora: The powerhouse of the C8, it will take the Twin-Turbo LT7 and augment with a hybrid system. This is expected to produce 1,000 horsepower and 975 pound-feet of torque. Hagerty's report says the rollout of the new engines will begin in 2022 with the LT6, but the COVID-19 outbreak may push the plans back.
      Source: Hagerty
    • By William Maley
      The COVID-19 pandemic has basically brought most of the world to halt. Orders to stay at home, businesses either having workers to their work from home or closing down, and unemployment skyrocketing is causing the economy to crater. There are efforts to try and jump-start the economy such as $1,200 stimulus checks. But an executive at Ford wants to see a return of a "cash for clunkers" like program.
      “We think some level of stimulus somewhere on the other side of this would help not only the auto industry and our dealers, which are a huge part of our overall economy, but will help the customers as well,” said Mark LaNeve, Ford’s vice president of U.S. marketing, sales and service to Bloomberg.
      “Cash for clunkers was very effective at that time. It would be nice to think we could have something equally as effective for 2020 when we get out of this because it was a great program.”
      According to LaNeve, internal discussions are taking place at Ford about doing a similar program and there are plans to bring the Government in to these talks.
      When asked by Automotive News about this, Ford spokeswoman Rachel McCleery said, "The auto industry is America’s economic engine.We are encouraging Congress to look at a variety of ways to drive job creation, increase demand, support customers and provide long-term stability for the entire auto ecosystem."
      A brief refresher on the Cash for Clunkers program. In 2009, the U.S. Government introduced a billion initiative called the Car Allowance Rebate System, which gave a voucher worth between $2,900 and $4,500 to anyone replacing a vehicle newer than 1984. Their old vehicle would be taken away and disposed of. The program was nicknamed Cash for Clunkers.
      On the surface, the program was a success. Within first month, all of the funds were exhausted. This prompted the U.S. congress infuse an addition two billion into the program, which would be all gone within 17 days. But begin to look deeper and the results are mixed. In 2012, a study published in the Quarterly Journal of Economics described the program as being a bit of a wash,
      "...the effect of the program on auto purchases is almost completely reversed by as early as March 2010 — only seven months after the program ended.”
      Other studies have come to the same conclusion.
      There's also the question of how many perfectly good used cars were taken off the road due to the program.
      Source: Bloomberg via Automotive News (Subscription Required), The Drive, The Truth About Cars

      View full article
  • Posts

  • Social Stream

  • Who's Online (See full list)

  • My Clubs

About us

CheersandGears.com - Founded 2001

We ♥ Cars

Get in touch

Follow us

Recent tweets

facebook

×
×
  • Create New...