Chevrolet’s withdrawal from the European market will bring problems for the General Motors employees in South Korea, where all the models were produced . Approximately 6,000 employees will receive a severance plan.
Chevrolet fires 6,000 employees
Chevrolet ‘s decision to withdraw from Europe will make waves across continents, namely Asia. General Motors’s division in South Korea will run a campaign of “voluntary retirement “ , where most Chevrolet models are beeing produced. 6,000 employees , none of whom are involved in production will lose their jobs and we are talking about approximately 2,200 people working in research and design , along with other departments that will not be necessary for this branch in Korea.
GM Research and Development Center in South Korea has one ongoing project: the new generation of the Chevrolet Spark and once this will be completed in March 2014, the whole research and development center will be closed , since there will be no future projects for its employees. GM South Korea representatives talk about the biggest crisis in recent history of the auto industry in that country and the last time something similar happened was the insolvency of Daewoo Motor Company, which was taken over by General Motors in 2002.
Chevrolet in Europe
Chevrolet ‘s market share in Europe in the first ten months of the year was 1.2 percent. Deliveries of Chevrolet cars in Europe fell by 17 percent in October , while Opel and its UK division, Vauxhall had a decline of only three per cent in the same period . GM representatives said they would continue to provide service for all current clients as many dealerships are common to those of Opel.
Some iconic models of the Chevrolet range , such as Corvette, will continue to offer the American brand some presence on the European market, as will be the case with certain models built by Cadillac.