Chevrolet sales in South Korea decreased 35 percent to 7,670 units in May 2018.
Model sales for the month were as follows:
- Chevrolet Aveo sales decreased 91.25 percent to 7 units
- The Aveo is known as the Chevrolet Sonic in North America
- Chevrolet Bolt EV sales increased 708.66 percent to 1,027 units
- Chevrolet Camaro sales decreased 59.09 percent to 18 units
- Chevrolet Captiva sales decreased 21.72 percent to 155 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 39.31 percent to 704 units
- Chevrolet Damas sales decreased 12.98 percent to 315 units
- The Damas is a small van originally introduced by Daewoo, which GM subsequently bought in the late 1990s
- Chevrolet Impala sales decreased 67.69 percent to 126 units
- Chevrolet Labo sales decreased 4.58 percent to 333 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 70.26 percent to 1,044 units
- Chevrolet Orlando sales decreased 45.47 percent to 427 units
- South Korea is the only remaining market where the Orlando continues to be manufactured and sold
- Chevrolet Spark sales decreased 30.34 percent to 2,565 units
- Chevrolet Trax sales decreased 18.61 percent to 949 units
In the first five months of 2018, Chevrolet Korea sales decreased 46 percent to 32,959 units.
The GM Authority Take
In 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 leave 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 lower levels of consumer confidence in GM and Chevrolet.
Another theory for the steep decrease in Chevy sales in the country is that availability of key models such as the Spark, Aveo, Cruze, Malibu, Trax, Captiva and Orlando was negatively impacted by labor strikes during the negotiation process, with inventory only now returning to normalized levels.
GM Korea Restructuring Details
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 and concessions by the local labor union to freeze wages. 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 announced previously, 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 Korea-based vehicle development and manufacturing operations playing a key role in the initiatives.
Sales Results - May 2018 - South Korea - Chevrolet
|MODEL||MAY 2018 / MAY 2017||MAY 2018||MAY 2017||YTD 2018 / YTD 2017||YTD 2018||YTD 2017|
About The Numbers
- All percent change figures compared to Chevrolet Korea May 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 news
- Running GM sales results
- GM incentives and offers
- MayÂ 2018 GM salesÂ results
- U.S.Â GM MayÂ 2018 salesÂ results (not available because of this)
- GMÂ Canada MayÂ 2018 salesÂ results
- Chevrolet Canada MayÂ 2018 salesÂ results
- Cadillac Canada MayÂ 2018 salesÂ results
- Buick Canada MayÂ 2018 salesÂ results
- GMC Canada MayÂ 2018 salesÂ results
- GM China MayÂ 2018 salesÂ results (not available because of this)
- Chevrolet Korea MayÂ 2018 salesÂ results
- Global MayÂ 2018 Cadillac salesÂ results (not available because of this)