Recognising the increasing role that fleet sales play in maintaining the manufacturers’ bottom lines, GM Daewoo is launching new fleet-oriented products and services in the UK. The company is targeting new sales in the small business sector but fleet sales are slow at the moment and the crowded market could make things hard for GM Daewoo.
GM Daewoo’s new strategy is to utilise its 75 dealership outlets in the UK as fleet service centres. Each outlet will focus on driving sales to local businesses in their region. In addition, the company will leverage other GM dealerships to provide channels for fleet sales and services, taking advantage of GM’s considerable UK market presence through its Vauxhall and Saab brands.
The company is aiming to increase its own network to 100 outlets and to grab a 1% share of the UK car market. This will be no mean feat, given that the company has only existed since October last year.
GM Daewoo is hoping that a new range of cars will boost interest in its fleet vehicle offerings. It is introducing a new lower-medium saloon called the Nubira [Lacelli], which has much better fuel economy and lower emissions than the company’s previous vehicles. Good emissions performance has become essential for fleet vehicles since new company car tax regulations were introduced last year, financially penalising users of inefficient vehicles for being heavy polluters.
The rapid progression of GM Daewoo, from foundation to addressing the fleet market, demonstrates how important this sector has become to manufacturers in recent years. By rapidly orientating its dealership operations towards providing a more effective fleet service provision network, the company has put the fleet sector at the forefront of its sales ambitions.
The current market is sluggish and there are many rivals struggling to maintain sales in the face of decreasing demand. On top of this, the tendency of operators to delay replacing vehicles in times of constrained budgets means that GM Daewoo may have picked a bad time to try to enter this already crowded market.