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Chevrolet Korea Sales Decrease 57 Percent To 5,369 Units In April 2018

Chevrolet sales in South Korea decreased 57 percent to 5,369 units in April 2018.

Model sales for the month were as follows:

  • Chevrolet Aveo sales decreased 83.33 percent to 19 units
    • The Aveo is known as the Chevrolet Sonic in North America
  • Chevrolet Bolt EV sales increased 166.12 percent to 322 units
  • Chevrolet Camaro sales decreased 69.23 percent to 16 units
  • Chevrolet Captiva sales decreased 43.21 percent to 138 units
    • The model sold in South Korea is the extended-length Captiva on the Theta platform with three rows of seating that dates back to 2006; it is not the smaller Captiva Sport that was sold in the U.S. as the Saturn Vue or in Europe as the Opel Antara
  • Chevrolet Cruze sales decreased 62.65 percent to 567 units
  • Chevrolet Damas sales decreased 22.28 percent to 279 units
    • The Damas is a small van originally introduced by Daewoo, which GM subsequently bought in the late 1990s
  • Chevrolet Impala sales decreased 70.98 percent to 110 units
  • Chevrolet Labo sales decreased 88.72 percent to 376 units
    • The Labo is a line of small vans and pickups introduced by Daewoo, which GM subsequently bought in the late 1990s
  • Chevrolet Malibu sales decreased 0 percent to 576 units
  • Chevrolet Orlando sales decreased 65.92 percent to 242 units
    • South Korea is the only remaining market where the Orlando continues to be manufactured and sold
  • Chevrolet Spark sales decreased 40.34 percent to 2,208 units
  • Chevrolet Trax sales decreased 64.41 percent to 479 units
  • Chevrolet Volt sales decreased 72.99 percent to 37 units

At the beginning of May, General Motors announced a massive restructuring of its South Korea business unit. Prior to the restructuring announcement, rumors ran rampant that GM would bankrupt its Korean operations and leaving the Korean market entirely. The developments seem to have resulted in a steep reduction in consumer confidence in the automaker as well as in Chevrolet, which is more closely associated with General Motors than Cadillac in Korea. As such, we attribute the precipitous drop in Chevy sales in South Korea to the lower levels of consumer confidence.

The turnaround plan for GM South Korea involves a $7 billion bailout of the unit (with GM providing $6.4 billion and the Korean Development Bank providing the remaining amount), along with the closure of the GM Gunsan plant, concessions by the local labor union to freeze wage. In addition to the bailout funds, GM will also invest $2 billion over the next 10 years and another $1.6 billion for corporate restructuring and operations. As promised in the past, GM will also conduct a debt-to-equity swap totaling $2.2 billion. The move will save GM Korea $110 million in interest payments a year. Finally, GM will set up a new headquarters office for its GM International division in Korea, as well as bring to market two new crossover utility vehicles and a new three-cylinder engine, with the automaker’s vehicle development and manufacturing operations in Korea playing a key role in the initiatives.

Sales Results - April 2018 - South Korea - Chevrolet

MODELAPR 2018 / APR 2017APRIL 2018APRIL 2017YTD 2018 / YTD 2017 YTD 2018YTD 2017
AVEO-83.33% 19114-59.39%253 623
BOLT EV+166.12% 322121+170.25%327 121
CAMARO-69.23% 1652-64.76%74 210
CAPTIVA-43.21% 138243-39.55%515 852
CRUZE-62.65% 5671,518-52.46%1,854 3,900
DAMAS-22.28% 279359-18.83%1,177 1,450
IMPALA-70.98% 110379-61.52%588 1,528
LABO-88.72% 3763,334-16.86%1,277 1,536
MALIBU0.00% 5765760.00%4,122 4,122
ORLANDO-65.92% 242710-48.09%1,521 2,930
SPARK-40.34% 2,2083,701-35.87%10,472 16,330
TRAX-64.41% 4791,346-55.50%2,912 6,544
VOLT-72.99% 37137+1,131.25%197 16
CHEVROLET TOTAL-57.36% 5,36912,590-37.03%25,289 40,162

About The Numbers

  • All percent change figures compared to Chevrolet Korea April 2017 sales, except as noted
  • South Korea sales figures reflect retail sales exclusively, and do not include fleet sales, which comprise a small part of the country’s sales volume

Further Reading & Sales Reporting

GM Authority Executive Editor with a passion for business strategy and fast cars.

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Comment

  1. The Orlando should ne exported to Australia, Latin America and MENA as a big brother of the Spin

    Reply

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