As General Motors prepares out to withdraw its Chevrolet brand from Europe’s mainstream automotive segments starting in 2016 to place greater emphasis on the Opel-Vauxhall brands due to “a challenging business model and the difficult economic situation” in the region, the automaker has different plans for Japan. Specifically, The General has high hopes for Japan. Coincidentally, it also has low sales in the country.
GM says that it’s is Japan for the long haul even though sales of Cadillac and Chevrolet models currently barely surpass 1,000 vehicles a year. By contrast, Japanese consumers purchase Toyota’s luxury Lexus vehicles at a rate of 40,000 a year. Interestingly, it’s not all about the domestics in Japan, as BMWs sells roughly the same amount of cars as Lexus does. In that regard, it seems that the tables are turned against American automakers in Japan, favoring European and Japanese brands.
As it stands, there are several barriers to foreign automakers selling a considerable amount of cars in Japan, such as offering right-hand drive vehicles — something that GM should be known for, given its global nature. That’s why GM sees an an opportunity in Japan, especially given that sales of its luxury nameplates have doubled in the past three years. So it will initially attempt to attract customers with the 2014 Cadillac CTS and 2014 Chevy Corvette C7 Stingray.
While Sumito Ishiii, GM Japan Managing Director, didn’t provide a sales target, he did say that part of GM’s strategy to grow sales is to approach buyers who may not have preconceived perceptions, whether right or wrong, about GM. In addition, both right-hand drive models are on their way. Currently, GM Japan’s product portfolio is made up of:
Chevrolet
Corvette
Camaro
Captiva
Sonic
Cadillac
ATS
CTS Sedan
CTS Sport Wagon
CTS Coupe
CTS-V Sedan
CTS-V Coupe
SRX
Escalade
“We have just begun our fight,” Ishii was quoted as saying at an event in Tokyo. “We offer attractive qualities that you can’t find in Japanese and European cars.” Ishii, along with Gregg Sedewitz, director of sales and marketing, say that GM’s cars represent American luxury and are associated with risk taking, coolness, and Hollywood celebrities. Of course, having renowned world-class products to sell helps, as well.
One of these highly-acclaimed global products is the new 2014 Cadillac CTS, which features great driving dynamics that surpass anything offered by Japan’s Lexus or Nissan/Infiniti, matching those of BMW and Mercedes-Benz thanks to a lightweight architecture, direct-injected engines, and well-tuned advanced chassis architectures. The new CTS has a starting price of 5.99 million yen ($59,900 USD) and 6.99 million yen ($69,900 USD). Meanwhile, the Corvette, starts at 9.29 million yen ($92,900 USD) and climbs all the way up to 11.59 million yen ($115,900). In Japan, the new CTS goes on sale in April of 2014, while the Corvette C7 goes on sales in May of 2014.
Perhaps more importantly is GM’s attitude on Japan, which Mr. Sedewitz summarized well:
“The numbers speak for themselves. We are in it for the long term.”
Now if only The General could do the same for Chevrolet in Europe before completely pulling the plug on the brand in the region.
Comments
Well, the positive way to look at it is that there’s no way to go but up.
I agree that Chevrolet should stay in Europe but only with big Chevys. Nothing smaller than Cruze wagon and all lineup with diesels too.
Japan is a tougher nut to crack.
But a limited number of Vettes, Camaro and some of the Cadillac’s will sell but the numbers will be small.
Takes a lot of money to buy an American car there and it is more of a status symbol.
On of the best used Chevy of the last decade selling there have been the older Caprice wagon and the Astro van used. they pay good money for them there. Also they buy a lot of Camaro’s from the Service men who leave them there.
But in the end you have to plant the seed to grow anything.
“it seems that the tables are turned against American automakers in Japan, favoring European and Japanese brands.”
hmmm…does GM have such a brand??? Let me think…Opel!
So Japanese are favoring European cars and don’t like American cars…GM has European and American brands in its portfolio…so what is logical to offer in Japan: American brands…isn’t it?
Not sure they should be selling the low end Chevy product in Japan. Like the EU, they should build from a core of their truly great new Caddy models and iconic Chevy models in right-hand drive.
If they want to spend some money to really get into the Japanese market, I would link up or buy Mazda. Mazda has some great new products would sell well rebadged and they could have helped with rolling out Caddy and iconic Chevys. Mazda might actually could like the idea since they don’t have similar high-end products to offer. Too bad they didn’t link up with Mazda about a year ago when they really needed cash badly instead of Peugeot.
Japan is known for their closed automotive market. Until this changes, no foreign company (American or European) will have any significant market share in Japan.
Chevy’s European lineup should be what we see above, except trade the Captiva for the Colorado, as Opel sells the Captiva. And if sales stay flat or rise into the future, GM can think about breaking Chevy off from Opel and start the real Chevy in Europe.