Chevrolet's Revival: A New Era for America's Largest Auto Maker

As the largest car division in the world, Chevrolet has dominated the US market for decades, epitomizing American style, power, and patriotism for its customers. However, by the late 1970s, G.M.'s earnings suffered as Chevrolet's image rusted, with dull and ugly cars like the Corsica and Caprice failing to capture buyers' attention. To restore its sales power and relevance in a changing market, Chevrolet is embarking on its most significant product overhaul in history, introducing 19 new cars and trucks between 1992 and 1997, replacing almost its entire line. This overhaul is crucial to G.M.'s comeback, and the division is banking on its new campaign, "Genuine Chevrolet," to convince buyers that the brand is returning to its old glory.

Key Takeaways:

• Chevrolet is the largest car division in the world, selling more cars and trucks than all of G.M.'s other divisions combined.
• In the late 1970s, Chevrolet's image began to rust, with cars like the Corsica and Caprice failing to capture buyers' attention.
• To restore its sales power, Chevrolet is introducing 19 new cars and trucks between 1992 and 1997, replacing almost its entire line.
• The new campaign, "Genuine Chevrolet," aims to evoke the classic 1957 Bel Air and 1959 Impala, with an image that combines style, power, and patriotism.
• Chevrolet's goal is to represent the best value in the business, achieving the same market position as Lexus at the high end.
• The new Lumina sedan, with a restyled interior and improved ride quality, will be available in May 1995, with a base price of $15,305, positioning it as a less expensive alternative to the Taurus.

Statistics:

• Current market share: 33.2% (Chrysler: 33.1%, Ford: 26.5%) [1]
• Sales in 1993: Chevrolet sold 219,683 Luminas, while Ford sold 360,448 Tauruses, and 120,977 Sables [Source: Ford Motor Company]
• Projected sales for 1995: 300,000 Luminas and 100,000 Monte Carlos
• Price gap: Lumina's base price of $15,305 is less expensive than the Taurus's base price of $16,240
• New product development: 19 new cars and trucks to be introduced between 1992 and 1997
• 3.7 million cars and trucks sold in 1978, compared to 2.3 million last year

Sources:

• [1] "Chevrolet's Revival: A New Era for America's Largest Auto Maker" (The New York Times, 1995)
• Ford Motor Company
• General Motors
• Lippincott & Margulies
• Toyota
• Jacobs & Associates
• Automobile magazine
• Consumer Reports magazine