12:26 pm, December 13, 2013
GENERAL Motors’ decision to axe the Chevrolet name in Europe will have only a minimal impact on the cars’ residual values, according to EurotaxGlass’s.
The provider of business intelligence to the European automotive industry carried out a review of Chevrolet’s past residual values to reach the conclusion. The results found that the impact will be relatively minor due to the orderly nature of the brand’s market exit.
The research involved a review of sales volumes, channel mix, current residual values and parallels drawn from other high-profile brand exits in the last 10 years.
EurotaxGlass’s believes that different countries will react in different ways as the brand has had varying levels of success across Europe but low volumes coupled with the already low residual values means there will only be a small impact on values in most countries.
Dean Bowkett, technical director and chief editor at EurotaxGlass’s Group, said: ‘We have already spoken to senior personnel within GM who have confirmed that warranties will be honoured and parts and service arrangements will be in place to satisfy the demand for repairs and maintenance of Chevrolet’s products going forward.’
He added: ‘Our contacts at Chevrolet have assured us that they are planning an orderly close down over an extended period. This approach will have a minimal effect on the dealer network because the majority are already dual-franchised with Opel or Vauxhall and as such are likely to remain as approved Chevrolet repair centres. We have also been informed that stock levels are already low which will negate the need for any fire sales from the brand during the transition period.’
