The Chevrolet Orlando is one of four new models the brand is launching at the Paris Motor Show.
It takes a bit of an effort to find for potential French buyers to find the Orlando crossover, one of four new models wearing the Chevrolet badge debuting at this year’s Paris Motor Show. Orlando and the rest are hidden in Hall 5, a good walk from the main pavilion where more mainstream brands, notably including the French domestics, Renault, Peugeot and Citroen, are on display.
Nonetheless, there’s been a steady stream of show-goers making the trek, underscoring Chevy’s surprising performance since it launched as a serious brand in the European market less than a decade ago.
And it is encouraging the General Motors division to set its sights high. By mid-decade, say company officials, they hope to more than double volume to over 1 million annually in Europe.
“Paris 2010 is a once-in-a-lifetime show for Chevrolet with four world premieres,” said Wayne Brannon, President and Managing Director of Chevrolet Europe, as the maker quickly rolled out the Orlando, Aveo, Captiva and Cruze hatchback during its brief, 15-minute press preview.
All four models aim for the low to middle end of the market, underscoring the distinctly different role Chevrolet has in Europe compared to its positioning in the U.S. and Latin America, where it has long been a mainstream leader in the market.
For years, General Motors relied on its German-based Opel subsidiary to target the heart of the European market. Chevy was limited to a few offerings, at most, primarily the Corvette sports car, which had a small but distinct following among those who wanted an alternative to traditional European offerings.
But as GM struggled to revive the long-troubled Opel brand it decided that it would be best not to try to stretch the German marque too far. So, Chevy was brought into Europe to focus on the lowest-end segments. And to hold down costs, its products were imported from Korea, where they were produced by GM’s Daewoo subsidiary.
Things got a little hazy, however, as General Motors started to sink into bankruptcy. The maker was forced to consider selling off a controlling stake in Opel to a Russo-Canadian consortium, and though it ultimately decided to keep Opel for itself, it decided to slightly broaden the European Chevrolet line-up.
So, while they are still targeting largely different buyers, there is a bit more of an overlap with models like the Cruze and Orlando.
In a market where manufacturers viciously fight it out over a tenth of a share point, the distinctively non-European look of Chevrolet has connected surprisingly well since the brand got a serious launch five years ago.
It now controls 2.5% of the market, and is particularly popular in the East, where price is of prime importance. In Russia, for example, it is now the number-one foreign brand.
Sales this year are anticipated to hit around 475,000. That’s off nearly 5% from the brand’s 2008 peak – but the entire industry has been struggling under the global economy downturn and Chevy is still expected to be up from sales of just 426,000 last year.
New product is critical to the brand’s ambitious growth plans. And along with the four new models debuting in Paris, another two are promised by 2012.
Expanding its diesel line-up is also helping Chevy’s European ambitions. And the marque hopes to earn some kudos when, in 2011, it launches the continental version of the Volt, the extended-range electric vehicle going on sale in the States late this year.
Volt will not only go up with a wave of new battery cars from European makers like Renault, Volkswagen and Mercedes-Benz, but also the Opel Ampera, which shares the American-made plug-ins underlying technology.
Nonetheless, Volt could be a critical addition to the line-up. Awareness among European consumers is considered the brand’s biggest near-term challenge, and as in the U.S., the breakthrough battery car is getting Chevy some much-needed headlines, even if models like the new Orlando and Cruze hatchback are likely to deliver far bigger sales volumes.