2021 Chevy Trailblazer Forum banner

1 - 12 of 12 Posts

·
Registered
Joined
·
63 Posts
Discussion Starter #1
General Motors Korea is projected to suffer losses as a result of worker strikes. According to GM Authority, it could affect the eventual production of the Trailblazer and other crossovers.


General Motors Korea is projected to suffer losses once again this year due to ongoing partial and general worker strikes.
General Motors and the state-run Korea Development Bank bailed GM Korea out last year, with GM contributing $3.6 billion to struggling company and the KDB putting up an additional $750 million. The KDB also owns a 17 percent stake in GM Korea, giving the state good reason to ensure the automaker’s success.

But with GM Korea’s worker’s union staging sporadic strikes, the automaker is 10,000 vehicles shy of its projected output for this year – affecting vehicle supply both locally and abroad. At the same time, GM Korea’s sales are down 6.2 percent year-over-year between January and August. It hopes new vehicles, like the Chevrolet Colorado, Traverse and Camaro, will attract new buyers to the brand and it plans to continue adding new models to its Korean portfolio between now and 2023.

GM will be keen to solve the South Korean labor row, not only for the health of its Korean business, but for its North American one as well. With Korea handling output of the hot-selling Buick Encore and Chevrolet Trax and a potential strike between the UAW in the United States also looming, a downturn in Korean production could compound with a work stoppage in the US and have an affect on crossover supply. GM Korea will also build the upcoming new Chevrolet Trailblazer and Buick Encore GX models, which will be exported to the US as well.

GM Korea posted a loss of 859 billion won ($738 million USD) last year, the fourth straight year of losses for the company, reports Korea Bizwire. It reported net losses of 3.13 trillion won ($2.6 billion) between 2014 and 2017 as well. The automaker’s struggling business is making it hard to meet union demands, it says, which entail higher wages and increased bonuses, among other concessions.
 

·
Registered
Joined
·
85 Posts
Smart move by the union that might just work the negotiation process in their favor. GM can't let this impact their involvement in this lucrative segment.
 

·
Registered
Joined
·
66 Posts
They're going to have to figure something out soon because Chevy Korea sales dropped 13% in August.

Chevrolet Korea sales decreased 13 percent to 6,411 units in August 2019.

Individual model sales performance was as follows:
During the first eight months of 2019 calendar year, Chevrolet Korea sales decreased 17 percent to 48,763 units.
 

·
Registered
Joined
·
63 Posts
Discussion Starter #4
This is not a good look at all, GM sales in Korea continued to drop with a 30% decrease in September. I wonder if they're going to do anything to resolve this strike.


GM recently launched the Chevrolet Colorado and Chevrolet Traverse in South Korea. The effort is meant to quickly attract attention from consumers and to improve the image of the Chevrolet brand in the country. However, since both the Chevrolet Traverse and Colorado are imported from the United States, neither is likely to reverse GM’s slumping performance in the near future in the South Korean market, especially given the ongoing GM UAW strike that has resulted in production of both models being stopped.

Even when the strike gets resolved and production of the Colorado and Traverse resumes, we don’t expect either of the two models to become substantial sellers given that very few, if any, vehicles imported into South Korea end up selling in huge volumes. That role is usually relegated to locally-produced vehicles.

Luckily, GM has one more trick up its sleeve – the all-new Chevrolet Trailblazer. The subcompact-plus crossover will begin to be manufactured by the end of 2019 at the GM Bupyeong plant and will be sold in South Korea as well as in North America.

GM Korea sales decreased 30 percent to 5,303 units in September 2019 compared to September 2018 results. Sales fell at both of GM’s brands offered in South Korea – Chevrolet and Cadillac.

Chevrolet sales decreased 30 percent 5,171 units:

Cadillac sales decreased 30 percent to 132 units:

In the first nine months of 2019, GM Korea sales decreased 18 percent to 55,271 units.
 

·
Registered
Joined
·
66 Posts
Yikes, at this rate October is going to be another brutal month for them. They're going to have to figure something out soon.
 

·
Registered
Joined
·
85 Posts
Yikes, at this rate October is going to be another brutal month for them. They're going to have to figure something out soon.
I believe GM might be keeping quite till the round of auto shows coming up. We MIGHT be in for some surprises aside from what's already known.
 

·
Registered
Joined
·
66 Posts
I believe GM might be keeping quite till the round of auto shows coming up. We MIGHT be in for some surprises aside from what's already known.
That's definitely a possibility. I guess the question would be which auto show would they do it at? Maybe LA?
 

·
Registered
Joined
·
66 Posts
Apparently GM has been really struggling in the East Asian markets, they're backing out of countries like Malaysia and Indonesia. They're also struggling in the Philippines.


The last few years haven't been easy for Chevrolet in many South East Asian markets.

With dropping sales and failures of some key models to gain traction in the markets they're in, it wasn't long before we would have seen them pull out of one -hopefully not some- markets.

Almost a year ago, the Malaysian distributor of Chevrolet said it has stopped selling the brand's models given their low performance on the sales charts, presumably making it un-profitable for them to keep up sales operations.

Now it has happened again: Chevrolet has just announced that they will be stopping sales in Indonesia effective March 2020.

"Globally, GM is taking tough actions to focus its capital and resources. This difficult decision is consistent with GM’s global strategy to focus on markets where there is a clear pathway to sustainable profitability," said Hector Villareal, General Motors Southeast Asia president.

In the announcement, General Motors says that they will stop selling brand new Chevrolet vehicles in Indonesia at the end of Q1 next year, though it did mention that they will continue to service customers for maintenance, repair, and honor warranties.

"In Indonesia, we lack the scale and domestic manufacturing footprint to sustainably compete in the volume segments of the market. These factors have also made our operations more exposed to broader factors in Indonesia, like softening commodity prices and foreign currency pressures," continued Villareal.

Upon checking with Gaikindo, Indonesia's auto industry counterpart to CAMPI and AVID, Chevrolet only sold 970 vehicles in the country from January to September 2019 (year to date) which is a 48.6% drop compared to the same period last year. That's a 0.1% market share compared to the YTD sales of the Indonesian market at 753,594 vehicles.

"Regrettably, this decision impacts a number of our small team of employees, who GM will support with an appropriate severance package and transition support. We are committed to supporting our stakeholders through the transition," said GM's boss for the region.

The announcement means that Chevrolet is the latest automaker to cease sales operations in Indonesia, following the pull-out of Ford Indonesia in 2016, as well as the legal problems encountered by Subaru Indonesia.

Much of the problems of Chevrolet in South East Asia stem from the failures of several key models to gain significant market shares like the Spin, Trax, and the Sonic. The Chevrolet Spin is of particular note; it's an MPV that's meant to compete with the likes of the Toyota Avanza, but they ceased production not too long after the launch in 2013.

In the Philippines, the sales story is also worrying for Chevy. Chevrolet is pinning their hopes on the Trailblazer in our market given our affinity for pick-up passenger vehicles (PPVs) or SUVs, but sales have likewise slumped in the last few years. In 2012, Chevrolet sold just 3,328 units, but when the Trailblazer was launched Chevrolet's total sales rose to 5,058 units (+52%) in 2013, followed by 8,046 units in 2014 (+59.1%).

Since 2015, however, the brand has experienced a fairly steady and sharp decline in sales. In 2015, they sold 7,382 units (-8.3%), but the year after that dropped to 2016's volume of 5,931 units (-19.66%). Since they had banked their volume on the Trailblazer, they fell prey to 2016's many new all-new SUV models such as the Ford Everest, Mitsubishi Montero Sport, and Toyota Fortuner.

Even with the excise tax scare that prompted car buyers to purchase early in the Philippines, Chevrolet only rose to 5,949 units (+0.30%) in 2017, followed by a sharp decline in 2018 to 4,017 units (-32.48%).

For the first eight months this year (2019), Chevrolet has only sold 1,884 units.

So, the next question is: what can Chevrolet do, especially since there does not appear to be another all-new Colorado, Trailblazer or other competitive ASEAN-made models in the near future?
 

·
Registered
Joined
·
85 Posts
Toyota is tough to beat as most people around the globe are convinced and can probably find bulletproof Toyota's on the local used market for cheap!
 

·
Registered
Joined
·
66 Posts
Toyota is tough to beat as most people around the globe are convinced and can probably find bulletproof Toyota's on the local used market for cheap!
Yeah it's definitely a tall task for any company to compete with Toyota in the Asian market. Chevy's push into the Chinese market should help offset this setback in Malaysia and Indonesia.
 
1 - 12 of 12 Posts
Top