Chevrolet sales in South Korea decreased 17 percent to 9,000 units in July 2018.
Individual model sales performance was as follows:
- Chevrolet Aveo sales decreased 96.43 percent to 3 units
- The Aveo is sold as the Chevrolet Sonic in North America
- Chevrolet Bolt EV sales increased 1485.45 percent to 872 units; the performance propels the electric vehicle to become the third-best-selling model in the Chevy lineup
- Chevrolet Camaro sales decreased 67.44 percent to 14 units
- Chevrolet Captiva sales increased 98.96 percent to 191 units
- The Captiva sold in South Korea rides is the extended-length model with three rows of seating on the Theta platform, which 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 70.19 percent to 313 units
- Chevrolet Damas sales increased 4.96 percent to 381 units
- The Damas is a small van originally introduced by Daewoo, which GM subsequently bought in the late 1990s
- Chevrolet Equinox sales totaled 191 units
- Chevrolet Impala sales decreased 49.07 percent to 137 units
- Chevrolet Labo sales decreased 7.2 percent to 361 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 22.75 percent to 1,813 units
- Chevrolet Orlando sales decreased 99.66 percent to 2 units
- Chevrolet Spark sales decreased 15.46 percent to 3,572 units
- Chevrolet Trax sales decreased 11.31 percent to 1,137 units
- Chevrolet Volt sales decreased 51.85 percent to 13 units
In the first seven months of 2018, Chevrolet Korea sales decreased 38 percent to 51,487 units.
Sales Results - July 2018 - South Korea - Chevrolet
|MODEL||JUL 2018 / JUL 2017||JULY 2018||JULY 2017||YTD 2018 / YTD 2017||YTD 2018||YTD 2017|
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 could bankrupt its Korean operations and leave the Korean market entirely. These developments appear to have caused a rather steep reduction in consumer confidence in the automaker as well as in Chevrolet, which is more closely associated with General Motors in Korea. As such, we attribute the ongoing drop in Chevy sales in South Korea to lower levels of consumer confidence in GM and Chevrolet.
Another theory for the ongoing decrease in Chevy sales in South Korea is that availability of key locally-manufactured models such as the Spark, Aveo, Cruze, Malibu, Trax and Orlando was negatively impacted by labor strikes during the negotiation process, with inventory not having returned to normal levels.
It’s worth noting that the July sales performance might be on the upswing compared to prior months, For instance, Chevrolet South Korea June 2018 sales decreased 16 percent to 9,528 units, May 2018 sales decreased 35 percent to 7,670 units and April 2018 sales decreased 57 percent to 5,369 units.
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.
About The Numbers
- All percent change figures compared to Chevrolet Korea July 2017 sales, except as noted
- South Korea sales figures reflect actual vehicle registrations rather than wholesales