General Motors withdraws Chevrolet from China and partners with Hyundai in Brazil

General Motors is withdrawing the Chevrolet brand from the Chinese market following a significant decline in sales. After reaching a peak of over 767,000 units sold in 2014, sales plummeted to fewer than 9,000 units last year. The company attributed the decline to a lack of new energy models, as the current lineup consists mostly of gasoline vehicles.

While Chevrolet sales in China will cease, manufacturing will continue through the GM-SAIC joint venture to support export markets. General Motors will instead focus its Chinese operations on the Buick and Cadillac brands, which are developing new electric vehicle models with local technological assistance. The GM-SAIC partnership has been extended for 20 years.

In South America, General Motors is implementing a new strategy to address the need for updated compact car platforms. The company has formed an alliance with Hyundai to utilize the South Korean manufacturer’s K3 platform. This collaboration will be used to develop new generations of the Chevrolet Tracker and Creta, as well as new pickup truck projects. Chevrolet vehicles in Brazil will continue to be manufactured in GM’s own factories rather than through shared production lines.