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Old 05-18-2008, 10:36 AM   #39 (permalink)
DuSpinnst
Starship Enterpise
 
Join Date: Jul 2005
Posts: 17,204
Re: GM considers selling Chevrolets in South Korea

Quote:
Originally Posted by BBDOS CV8 View Post
But hang on:
  1. Holden already has significant luxury sales presence with three models over the luxury tax threshold - GM hasn't got anything superior to what Holden already has, either now or in the pipeline. Holden/HSV has 15-20% of the over $50K market now! GM in North America don't own that proportion of their own market.
  2. HSV is already there with it's whole range and already selling more cars than ever. Alone they sell 6,000 cars or 6% of that market, which makes them probably a top ten player.
  3. Cadillac is supposedly coming to be 'upmarket GM' - how can Holden move upstairs if they're already carrying an expensive lodger in the attic?
  4. Two GMDATs already sell at supply limit (Captiva and Barina) and the Rodeo is the second/third best seller in the class all as Holdens. Rebadging as Chev won't help them one iota.
As it is, Holden is getting CTS (and coupe) and Camaro whether they want them or not. That is the reason given for no 'Coupe60' so as far as we're concerned Holden and it's fans are already hurt and what you're saying is spin. I have no doubt Holden will have to dumb down Calais to give CTS a run, or they'll be told to when CTS doesn't sell. The numeric class leade in the target demographic is Calais, along with Caprice.

I see Holden being squeezed from both ends. If you bring in a full Cadillac line including an Alpha (which means no Torana) which is supposedly the plan, a lower end made up of Chevs and a Camaro and supposedly eventually Corvette for performance then the pressure on Holden to justify it's existence will become intense. Might as well brand everything Chev.

Holden evaluated the C5 Corvette for conversion and sale as a HSV, and considered selling the Camaro as a Holden Camaro. In the end they decided they would be best sold as Chevs because in that market that's their heritage and what they are known as. Holden realised it would hurt the marketing of them to rebadge. The same is true in reverse - Holden is known as the 'Aussie car' even though it's 100% owned by GM. Chev? Chev is nowhere - it'll never be anything but a 'US brand' which will work against it and is not a sub for Holden.

If GM subbed Chev badges for Holden a lot of people, me included, would vote with their feet and avoid their cars. They'd lose most of a generation of consumers - because Holden is 60 this year and we've known them all our lives. It's like saying the New York Yankees could change their name without losing their fans. Or Chev itself. That's utter rubbish. It's an irrational reaction, but it will happen. It'll seen for what it is, just be a naked grab to 'win' market share by badge substitution; and it would bre intensely resented.

If Holden close their doors, then it won't matter. But that isn't happening anytime soon.

And I think you'd find, many Koreans would feel the same about Daewoo.
All fine points, until you look at GM's strategy in Europe.

Cadillac, Saab, Chevy, and Opel co-exist in that market. Opel basically as of right now has as many cars as Holden minus the VE line (and variants).

In Australia it will be the same. Korean based Chevy's in the low end, Holdens in the mainstream (replace any Daewoo car you have with it's European Opel counterpart), Saab off on it's own, and Cadillac at the top.

The only issue in Australia that is not present in Europe is the VE versus CTS line. But I think that is because in Europe larger cars are not at the forefront. For that analysis I'd look at the NA market where Cadillac exists with Pontiac/Saturn/Buick.

The logic that states GM cannot maintain 4 brands in Australia is one I don't buy. Sorry guys they do it in the rest of the world, maybe by selling multiple versions of the same car, but eventually to amortize costs they will begin doing it in your market. Holden will become a Vauxhaull/Saturn like company selling local fare with rebadged Opel's.
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