Chevrolet sales in South Korea decreased 12 percent to 10,428 units in December 2018.
Individual model sales performance was as follows:
- Chevrolet Aveo sales decreased 65.79 percent to 13 units
- The Aveo is sold as the Chevrolet Sonic in North America
- The Holden-badged Aveo produced by GM Korea and marketed as the Holden Barina in Australia and New Zealand was discontinued in September
- Chevrolet Bolt EV sales decreased 70.83 percent to 7 units
- Chevrolet Camaro sales increased 91.67 percent to 46 units
- Chevrolet Captiva sales decreased 100 percent to 0 units
- The model has been discontinued and fully replaced by the Chevrolet Equinox
- The Captiva sold in South Korea is the extended-length model with three rows of seating on the Theta platform, which dates back to 2006; it is substantially different than 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 99.9 percent to 1 units
- The model was discontinued earlier this year in Korea
- Chevrolet Damas sales increased 15.57 percent to 386 units
- The Damas is a small van originally introduced by Daewoo, which GM subsequently bought in the late 1990s
- Chevrolet Equinox sales totaled 426 units
- Chevrolet Impala sales decreased 64.93 percent to 101 units
- Chevrolet Labo sales increased 9.73 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 31.49 percent to 1,817 units
- Chevrolet Orlando sales decreased 100 percent to 0 units
- The model was discontinued earlier this year in Korea
- Chevrolet Spark sales increased 13.73 percent to 5,252 units
- Chevrolet Trax sales increased 29.78 percent to 2,009 units
- Chevrolet Volt sales totaled 9 units
During the complete 2018 calendar year, Chevrolet Korea sales decreased 36 percent to 84,075 units.
Sales Results - December 2018 - South Korea - Chevrolet
| MODEL | DEC 2018 / DEC 2017 | DECEMBER 2018 | DECEMBER 2017 | YTD 2018 / YTD 2017 | YTD 2018 | YTD 2017 |
|---|---|---|---|---|---|---|
| AVEO | -65.79% | 13 | 38 | -70.65% | 356 | 1,213 |
| BOLT EV | -70.83% | 7 | 24 | +738.72% | 4,722 | 563 |
| CAMARO | +91.67% | 46 | 24 | -56.34% | 224 | 513 |
| CAPTIVA | -100.00% | 0 | 151 | -42.53% | 1,185 | 2,062 |
| CRUZE | -99.90% | 1 | 1,046 | -65.75% | 3,615 | 10,554 |
| DAMAS | +15.57% | 386 | 334 | -8.18% | 3,886 | 4,232 |
| EQUINOX | * | 426 | * | * | 1,718 | * |
| IMPALA | -64.93% | 101 | 288 | -57.01% | 1,549 | 3,603 |
| LABO | +9.73% | 361 | 329 | -7.81% | 3,999 | 4,338 |
| MALIBU | -31.49% | 1,817 | 2,652 | -48.83% | 17,052 | 33,325 |
| ORLANDO | -100.00% | 0 | 770 | -73.09% | 2,171 | 8,067 |
| SPARK | +13.73% | 5,252 | 4,618 | -35.12% | 30,651 | 47,244 |
| TRAX | +29.78% | 2,009 | 1,548 | -22.73% | 12,787 | 16,549 |
| VOLT | * | 9 | 0 | +166.67% | 160 | 60 |
| CHEVROLET TOTAL | -11.79% | 10,428 | 11,822 | -36.46% | 84,075 | 132,323 |
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 was planning on bankrupting its Korean operations to leave the Korean market altogether. These developments appear to have caused a rather steep reduction in consumer confidence in the automaker as well as in the Chevrolet brand, which is closely associated with General Motors in Korea. As such, we attribute the significant drop in South Korean Chevy sales to lower levels of consumer confidence in GM and Chevrolet.
In addition, Chevy’s lineup is not as attractive from a competitive standpoint when compared to Hyundai and Kia. For instance, Chevy has discontinued the Cruze and Orlando – two key models for the brand in the Korean market.
For reference, Chevrolet Korea sales have been as follows in the past several months:
- November 2018: Chevrolet Korea sales decreased 20 percent to 8,280 units
- October 2018: Chevrolet Korea sales increased 8.58 percent to 8,328 units
- September 2018: Chevrolet Korea sales decreased 17 percent to 7,433 units
- August 2018: Chevrolet Korea sales decreased 26 percent to 7,391 units
- July 2018: Chevrolet Korea sales decreased 17 percent to 9,000 units
- June 2018: Chevrolet Korea sales decreased 16 percent to 9,528 units
- May 2018: Chevrolet Korea sales decreased 35 percent to 7,670 units
- April 2018: Chevrolet Korea sales decreased 57 percent to 5,369 units
So while December sales slide wasn’t quite as steep as those of months prior (with the exception of October) and it’s good to see GM minimize the sales slide, the figures still represent a notable drop in sales volume – which is (almost) never a welcome circumstance.
GM Korea Restructuring Details
The GM South Korea restructuring 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 December 2017 sales, except when noted
- South Korea sales figures reflect actual vehicle registrations rather than wholesales
Further Reading & Sales Reporting
- GM news
- Running GM sales results
- Running Chevrolet sales results
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