GM Backtracks On Plan To Nix Chevy Nickname [Video]

General Motors Co. on Thursday backed off a "poorly worded" internal memo that asked employees to refer to the brand only as "Chevrolet" -- not its long-standing nickname -- in an effort to create consistency.

In the original memo, employees were discouraged from using the "Chevy" nickname for the Chevrolet brand. GM later issued a statement to clarify the intention of the memo, saying that it was only meant to help establish Chevrolet as a global brand and that employees needed to be more focused in their communications in referencing the brand.

General Motors said " 'Chevy' will continue to reflect the enthusiasm of customers and fans."
Advertisement

The internal memo was part of an effort to develop a consistent brand name as it establishes a significant global presence.

In a video also issued by GM to correct itself, Alan S. Batey, vice president for Chevrolet sales and service, said, "Chevy is our nickname. It comes from selling vehicles here in the U.S. for 100 years. We love it when people call us Chevy." Batey was one of the two GM officials who signed the original memo.

On Facebook, brand pages include Chevy Camaro, Chevy Silverado and Team Chevy.

General Motors also stated that they were reconsidering resurrecting the talifin. A sudden resurgence of the love for the 1959 Chevrolet is rumored to be the reason.





Press Release

Statement on the use of Chevrolet and Chevy

"Chevy" will continue to reflect the enthusiasm of customers and fans

2010-06-10 DETROIT -- Today's emotional debate over a poorly worded memo on our use of the Chevrolet brand is a good reminder of how passionately people feel about Chevrolet. It is a passion we share and one we do not take for granted.

We love Chevy. In no way are we discouraging customers or fans from using the name. We deeply appreciate the emotional connections that millions of people have for Chevrolet and its products.

In global markets, we are establishing a significant presence for Chevrolet, and need to move toward a consistent brand name for advertising and marketing purposes. The memo in question was one step in that process.

We hope people around the world will continue to fall in love with Chevrolets and smile when they call their favorite car, truck or crossover "Chevy."

VW intends to topple Toyota

10 million sales by 2018 is new goal

BY ANDREAS CREMER
BLOOMBERG NEWS

Volkswagen, Europe's largest carmaker, said it plans to increase sales to more than 10 million vehicles by 2018 as it seeks to dethrone Japan's Toyota.

VW's management board approved business targets, including profit margins, measured by earnings before interest and taxes, of at least 5% for the automotive business in the "medium term," Wolfsburg, Germany-based Volkswagen said in a statement Wednesday. The target doesn't include Porsche, which will be integrated by 2011, it said.

Volkswagen CEO Martin Winterkorn has a target of beating Toyota, the world's biggest carmaker, in global deliveries and profit margins. VW sold 6.29 million cars and SUVsworldwide last year, an increase of 1.1% from 2008. Toyota said last month that 2009 vehicle sales, including those of affiliates, fell 13% to 7.81 million vehicles.

"It shows plenty of ambition in the whole Volkswagen Group," said Stephen Pope, chief global equity strategist at Cantor Fitzgerald in London. "By being able to learn from Porsche's discipline, it gives them that extra springboard."

By 2018, Volkswagen, which includes the Audi luxury division and Czech unit Skoda, should have a pretax profit that exceeds 8% of sales, the company said.

Volkswagen shares fell 18 cents, or 0.3%, to 65.72 euros after rising as much as 1% on the Frankfurt exchange before the announcement. The automaker has a market value of 25.7 billion euros ($36 billion).

"With the implementation of 'Strategy 2018,' the Volkswagen group is seeking global economic and environmental leadership in the automotive industry by 2018," VW said in its statement. The plan would include "significant cost cutting, in part through the more prominent use of the modular design principle."

VW foresees steps to promote research and development of hybrid and electric cars, according to the statement. VW will also maintain "strict discipline" on spending and aim to keep the expenditure on fixed assets in automaking at about 6% of sales in the medium and long term.