Shanghai GM to cut Chevrolet sales H2 target 25%

Shanghai, July 30 (Gasgoo.com) The 170 Chevrolet dealerships in China began in June to feel the increasingly fierce competition from other sedan brands, and this has made Shanghai GM General Manager Ding Lei decide to scale the Chevrolet sales target down by 20-25% for the second half (H2) and to introduce European and U.S. models, reported China Business News yesterday.

Ding said this move to decrease the sales target for H2 is intended to reduce the losses for the Chevrolet dealers in China, and the future product strategy of Shanghai GM is to introduce more vehicle models from the United States and Europe. This strategic move is expected to bring the company back to the leading position in China's auto industry.

Later this year, Shanghai GM will launch a new Chevrolet model based on the Opel platform. This mid-class sedan, now in trial run in southern China's Hainan Island and to be built in Shanghai and Europe simultaneously this year, will become an important part of the Chevrolet line-up.

Shanghai GM also plans to launch an all-new model from North America in late 2009. This model will be equipped with the company's self-developed new engine as a means to meet the soaring fuel prices.
       
In 2007, the Chevrolet Lova and Chevrolet Aveo cars sold a total of 98,486 units, up 83% over 2006 year on year (y/y), and the two models also sold 68,795 units (with Lova sales at 63,969 units) in the first six months of 2008, increasing more than 73.63% y/y.

China sales of imported and locally made Chevrolet vehicles through the end of April 2008 totaled 519,110 units. The Chevrolet brand was launched into the Chinese market on January 18, 2005.