Wednesday, March 18, 2015

Care Opel and Chevrolet in Russia will close dealerships – RBC

Care Opel and Chevrolet in part lead to the closure of dealerships, says the head of the Association of Russian car dealers (ROAD) Vladimir Mozhenkov. This is recognized by the representative of GM, but an exact figure could not name.

This may be the closure of about half of the data center marks, believes the president Favorit Motors (sells including Opel and Chevrolet) Vladimir Popov. “First of all go to the market dealers working in rented space”, – he said.

Earlier Wednesday, Opel and Chevrolet announced his retirement from the Russian market. This decision resulted in very low sales in late 2014 and early 2015. Opel goes from Russia completely. Chevrolet will leave Russia’s only premium model Corvette, Tahoe, and Camaro. In addition, do not cease selling cars under the brand Cadillac. Said in a statement that GM will focus on selling only premium brands Chevrolet and Cadillac. In GM promised that the dealer network will be restructured by the end of the year and the service and spare parts for the departed brands will remain.

According to Popov, GM did the right thing, leaving only the premium brands – they are best sold. Besides, he adds, the company will maintain the service, and it is the most profitable part of the car business.

According to the Road, now working in Russia 138 dealerships and 156 Opel Chevrolet. According to the “AUTOSTAT”, 150 and 160 points respectively. That is the order of 150-160 can close objects.

Dealers fear for the preservation of their investment in the development of sales of Opel and Chevrolet. According to three dealers with whom talked to RBC, the construction of one center costing $ 7.6 million, the payback period – seven or eight years. Some centers were opened later this term that does not allow them to pay off.

Dealers assumed the obligations to the manufacturer for investments in car centers, said a member of the board of directors of dealer groups “Laura” Michael Logutenko. According to him, some dealers had to work only six months, now GM will have to compensate them for the costs.

GM says it will spend on the restructuring of the business in Russia about $ 600 million. The funds will be used, including the transformation of dealer network , cancel the contract and to cover the costs associated with reducing staff. About $ 200 million will be in-kind. Discussion of compensation, according to the Commercial Director of “Autoworld” Vitaly Groshenkova to begin in April, with each individual dealer for each specific point: “We hope for a compromise solution that satisfies both sides».

According to Popov, withdrawal from the market GM brands is very similar to mislead in order to force the dealer to take obviously wrong investment decision. “If such a situation occurs, for example in China, the company had stopped to multi-million dollar lawsuits,” – he said, adding that Favorit Motors does not rule out the possibility of suing GM «to obtain compensation for the actual enforcement of the company’s investment in standards” after consultation with lawyers .

The vacated area can convert to other brands, cars with mileage, or go to the multi-format, says commercial director GK “Autoworld”. At Favorit Motors already has an offer from other brands in our sales areas, the president of the company. Besides, he added Groshenkov, dealers will continue to engage in service contracts, as “it is good business.”

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