GM decides to withdraw Chevrolet from Europe

GM decides to withdraw Chevrolet from EuropeIn a spiky turnaround of its global strategy General Motors plans to mostly withdraw its Chevrolet brand from Europe.

The decision followed as GM had repeatedly said it hoped to break even in Europe by mid-decade. It was not absolutely clear whether the decision to discontinue selling most Chevrolet vehicles in Europe would affect that goal.

Every year of this century the company has lost money in Europe which include, $499 million this year through September, down from $1.2 billion during the same period in 2012.

General Motors said that, the Chevrolet brand will no longer have a conventional existence in western and eastern Europe mainly due to the failure to build a significant market share and the difficult economic situation in Europe.

Stephen J. Girsky, GM's vice chairman, said on Thursday, "We have growing confidence in the Opel and Vauxhall brands in Europe. We are focusing our resources in mainstream Europe."

Chevy's sales volumes in Europe have hardly moved perched around 200,000 cars ever since GM re-launched the brand in Europe in 2005, mainly by selling rebadged Korean-made Daewoo cars.

GM said the Chevy decision would result in net special charges of between $700 million and $1 billion, primarily to be taken in the fourth quarter of 2013 but continuing in the first half of 2014.