Chevrolet sales in South Korea decreased 11 percent to 5,177 units in February 2019.
Individual model sales performance was as follows:
- Chevrolet Aveo sales decreased 98.95 percent to 1 units
- The Aveo is sold as the Chevrolet Sonic in North America; the model was discontinued in Canada in January 2019
- The Holden-badged Aveo produced by GM Korea and marketed as the Holden Barina in Australia and New Zealand was discontinued in September
- Chevrolet Camaro sales decreased 0 percent to 18 units
- Chevrolet Damas sales decreased 1.67 percent to 295 units
- The Damas is a small van originally introduced by Daewoo, which GM subsequently bought in the late 1990s
- Chevrolet Equinox sales totaled 133 units
- Chevrolet Impala sales decreased 98.39 percent to 2 units
- Chevrolet Labo sales increased 18.84 percent to 328 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 7.41 percent to 1,075 units
- Chevrolet Spark sales increased 0.08 percent to 2,401 units
- Chevrolet Trax sales increased 24.49 percent to 920 units
- Chevrolet Volt sales totaled 4 units
- Chevrolet Captiva sales totaled 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 totaled 0 units
- The model was discontinued earlier this year in Korea
- Chevrolet Orlando sales totaled 0 units
- The model was discontinued earlier this year in Korea
- Chevrolet Bolt EV sales totaled 0 units as a result of lack of availability of the electric vehicle; more units will become available in the March-April timeframe
During the first two months of 2019 calendar year, Chevrolet Korea sales decreased 25 percent to 10,230 units.
Sales Results - February 2019 - South Korea - Chevrolet
| MODEL | FEB 2019 / FEB 2018 | FEBRUARY 2019 | FEBRUARY 2018 | YTD 2019 / YTD 2018 | YTD 2019 | YTD 2018 |
|---|---|---|---|---|---|---|
| AVEO | -98.95% | 1 | 95 | -94.44% | 11 | 198 |
| CAMARO | 0.00% | 18 | 18 | +2.50% | 41 | 40 |
| DAMAS | -1.67% | 295 | 300 | +2.45% | 628 | 613 |
| EQUINOX | * | 133 | * | * | 285 | * |
| IMPALA | -98.39% | 2 | 124 | -99.10% | 3 | 332 |
| LABO | +18.84% | 328 | 276 | +3.09% | 567 | 550 |
| MALIBU | -7.41% | 1,075 | 1,161 | -16.95% | 2,190 | 2,637 |
| SPARK | +0.08% | 2,401 | 2,399 | -20.55% | 4,565 | 5,746 |
| TRAX | +24.49% | 920 | 739 | +11.82% | 1,930 | 1,726 |
| VOLT | * | 4 | * | * | 10 | * |
| CHEVROLET TOTAL | -10.80% | 5,177 | 5,804 | -25.04% | 10,230 | 13,648 |
The GM Authority Take
Chevrolet sales in South Korea are continuing to slide even past their already-depressed levels in 2018, during which times General Motors Korea underwent a massive restructuring.
We attribute the ongoing drop to an incomplete lineup and less-than-competitive product offerings when compared to domestic champs, Hyundai and Kia. For instance, Chevy has discontinued the Cruze and Orlando. It also seems to have discontinued the Aveo. All three models were key models for Chevy in Korea.
For reference, Chevrolet Korea sales have been as follows in the past several months:
- December 2018: Chevrolet Korea sales decreased 12 percent to 10,428 units
- 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
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 February 2018 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
Comments
Alex, it is bigger than a lot of you guys realize and some want to admit.
I have a couple of assessments on the Stock Drop article you might want to check out. I might drop a few other items over the weekend if I get time, but only what I am at least semi-qualified to talk about.
We are professional reporters and journalists, not fanboys. So your point about “us not wanting to admit” something doesn’t align with what we do or what/who we are.
As for it being “bigger than we realize”, we follow this market very closely and our take is on the money. Chevy is simply being out-done in South Korea primarily by the local rivals… just like it’s being beat in ASEAN locations/markets such as Thailand and Indonesia by Toyota, Honda and Nissan.
Hey, Alex. Thank you for the response. Get that you are very professional as I wouldn’t waste my time on here if not.
However, please read my opening sentence more closely; what I said was “bigger than a lot of you guys realize” = you are missing some details and key data that maybe hasn’t been as public as I thought. “…And some don’t want to admit.” was in reference to the general consensus in the industry and general board talk I see on here. Nothing personal to you or your team so I truly don’t understand the defensiveness.
Anyways, I don’t know all and not on any vehicle-line teams per se. My position is a bit of an unique one and probably why I feel relatively safe from the cuts as there is no one to replace me and software is still not up to par on my job responsibilities. It does provide me with a good view on the big pic and contacts within the company (and certain key markets) that provide tidbits of info that when pieced together can provide a more clear picture.
Just trying to help out.
The figures constitute an improvement in sales. They are comparing year on year, GMK sales were down much more in the last 6 months.
Regarding GM Authority’s analysis in the article above, most is relevant but a few parts missing:
1) Notice no electrification announcements in the new restructuring? It is Asia, but…
2) North Korea reunification or economic development could play a big role in it’s long-term success.
3) South Korean economy is not good and won’t be for some time. Given the relatively small size and other Asian markets, it will never be a powerhouse so maybe some people put too much into it.
The factors you bring up have zero impact on Chevrolet/GM sales volume in February 2019. Addressing your points:
1. The fact that the GMK restructuring announcement itself didn’t have a mention of electrification is curious, but ultimately does not impact current sales volume. The Bolt EV was selling relatively well in this market throughout the majority of calendar year 2018 (check out the links in the article for 2018), but sales have curiously dissipated in 2019.
2. Though North Korea-related matters are worthy of looking at, they have not been and continue not being a factor in CURRENT sales volume.
3. To say that South Korea as a market isn’t substantially big enough is to miss the forest for the trees. It never was huge, big or substantial. But the overall makeup on the South Korean auto market is similar to that of European nations (with the exception of diesel). In other words, Korea has always been and will continue to be an opportunity to increase sales volume of vehicles already produced/engineered for other developed markets with no modifications or perhaps minor, market-specific changes. So it’s not about being huge. It’s about giving a global automaker one more market to sell vehicles developed for Europe, North America, and (lately) China. That has always been the perspective of most automakers… GM included.
Note that this is different from GM’s manufacturing base in Korea, which serves export markets more than it serves Korea.
There’s your insider perspective right there.
In response:
1) It is important but I won’t go further until I have more substantial info. Think Asia/ China and past exec comments about 100% electrification. It does matter.
2) I guess I am ahead of you as I am not talking currently sales but general industry/ company trends and strategic moves. Too big of a topic to discuss here right now. Of course nothing to do with current sales.
3) Hopping trains right now so excuse my poor writing and lack of details. Hopefully I can address this topic more in detail soon on here as I was part of an inter-Asian Dev team. Patience. Thanks.
Are you an insider? Where have you worked at the General?
Addendum:
Some might not get this, but GM staying in SOUTH Korea and investing more even as the S. Korean market looks bleak and really won’t grow that much compared to it’s Asian rivals is due to something much bigger than SOUTH Korea. It also is a strategic back-stop against the prevailing winds in China.
Think.
The tone of my reply comes with the territory. Too many times did we have some armchair quarterback critique original/exclusive GMA reporting that is the result of days’ worth of work and years’ worth of experience and observation with a comment along the lines of “you guys are wrong, hahah.” So, my apologies if my reply came off as crass. That was not my intention.
As for GM in South Korea, I believe that you’re alluding to the EV track, though I’d be curious to hear more.
I spent my time at GM on the GCCX (Global Connected Customer Experience) team, working cross-departmental roles to improve or overhaul in-vehicle technology, customer experience, and ownership touch points.
Re: Bolt EV sales dissipating:
This is an allotment issue.
Approx, 5,000 Bolt EVs were allocated for S. Korea for 2018. All 5,000 sold over the summer months and after that sales dissipated simply because there were no more units available.
GMK began taking orders for 2019 Bolt EVs on Jan. 9 and these orders will begin to be filled in March, so expect to see sales numbers increase throughout the spring.
No word on the 2019 Bolt EV allotment size.
north and south korea reunification? what are you smoking? you have an even more pollyannish view of north korea than trump.
Looks like crazy “steve” is back with his psychotic Trump Derangement Syndrome spazzing.
Hang on everyone, the little guy is off his meds again. Just when the board was going well with decent intelligent discussion, idiots like this come back on. L
Just messin’ with you guys. Got to have some fun now and then.
Love President Trump and all what he is doing for America. Great times to be in.
In my opinion, GM needs to rebirth the DAEWOO brand as a global one.
That would never work. Korea itself is not the focus in Asia at all.
Daewoo cars sold Well in the past especially in emergent countries.
A reborn Daewoo would bring nothing new to the table that can not be accomplished with Chevrolet currently. It would be one more brand to dedicate resources to and manage at a time when GM can’t effectively manage any of its current brands with significant levels of success, let alone make them truly global. Put another way, a reborn Daewoo would only take away from the already-weak global Chevrolet.
As for emerging markets, Chevrolet is the best-selling auto brand in South America (a market that is emerging as a whole). That position should only become stronger as GM’s GEM-based vehicles come to market over the next few years.
The problem with Chevrolet in Korea and outside of that, in ASEAN member nations, is simple: the Chevy portfolio is extremely small, availability is weak, marketing operations are even weaker. Top-level GM leadership (Barra, Reuss) need to put real go-getters in charge of these GM International sub-divisions… that is if being very successful in those markets even matters to them.
GM is out of Europe Asia and Africa inspite Egypt. Toyota and VW are present in every market directly or through a local dealer selling nearly all of their lineups. Where is GM?
GM is cherry-picking the markets it wants to compete in. It has understood that it will require a significant amount of effort, investment, time, etc. to become profitable in those markets, let alone reach a dominant position… and has instead chosen to focus energies in future-looking realms like EVs and AV technology.
I personally don’t agree with the strategy… as it is short-sighted and speaks to a “giving up” attitude rather than one that looks to tackle challenges… but it’s what GM is doing nonetheless.
The principal advantage would be in South Korea. That would enable to quarantine the Chevrolet brand for upmarket US made vehicles like the Camaro and Silverado, which are currently being confused with the economy models. I don’t think they have the rights to the Daewoo name however.
I hear you, but I still don’t see a reason for doing what you’re describing.
Chevrolet can cover the gamut of “mainstream” vehicles on the low- and medium-end, plus a few specialty vehicles (Camaro, Corvette). It can do this in Korea much like it’s been doing elsewhere (the Americas and China).
The poor sales figures demonstrate that the South Korean car market is totally different than that of China and given the small numbers, General Motors needs to consider whether the South Korean market is worth pursuing as GM sold 4,040,789 vehicles in China in 2018.
As I mentioned earlier, Korea is important in that it can be a significant driver of profit and additional volume at relatively low effort… but ONLY IF it’s done right.
Right now, Chevy in Korea is not exemplary of automotive being “done right”… as they are missing offerings in key market segments, while fielding less-than-competitive offerings in the market segments in which they do compete (Malibu and Equinox being the primary examples).
A year ago, GM Korea sales were down over 40% already.
And Korea is bailing out GM because GM bought Daewoo? We’re all wusses now. I thought today’s GM with its same old habits is a textbook example as why not to financially reward failure.
If you are a fan of car production planned and overseen by the government google Trabant, or Wartburg; you might change your mind.
Thank, Alex. Yes, wasn’t at all being sarcastic to you or anyone on your team. Like I mentioned, lurked here a bit but not a regular so don’t know the culture much here.
Ah, now I know where you are from at the General. Things have changed a bit but good to see someone in here who has some inner working knowledge. Of course not everyone has the opportunity at GM to gain much strategic-level insight or big pic understanding due to compartmentalization, but I am sure there are a few here and there that come on here from time to time. I swear when I first lurked there was someone from one of my own team’s was on here. You could tell by the style of talk and word use, and a couple of points he made directly related to his position.
Again, I will be totally honest and say I don’t know much but due try to chime in now on what I have some experience. I am far removed from Detroit (decision-wise and literally) but do report to some important people and get to visit far off ops/ people.
Sorry, need to grab a good coffee. Very early here.
Okay, I think I need two coffees after re-reading my last post with all the syntax/ grammar issues and bad word choices. Like I said, it is early here so pardon my poor effort.