Earlier this month, General Motors announced their detachment from the prevailing automobile brand, Opel, in the European market since the Brexit guidelines deferred the company to maximize its profits in the region. As a result, the sales of electric cars in Europe have declined.
The German Opel and British Vauxhall brand had been prevailing in the European auto market for almost 40 years. In fact, it had not experienced any major decline in sales in recent years. However, since Brexit was implemented, both brands experienced perpetual failures that they have struggled to regain mid-price and mid-value with respect to increasing sales, particularly in electric cars, reported Jalopnik.
At present, the French manufacturers are the ones who are prevailing in automotive sales in the region since the decline of electric cars sales in Europe. The downside of the Brexit implementation was that Opel and Vauxhall had nearly recovered from their losses in the past. In fact, a Vauxhall model was declared "Car of the Year" in 2016. Unfortunately, General Motors withdrew its investment as they saw an unhealthy market due to a change in trade policies brought about by Brexit. In fact, the value of electric cars and other vehicles being sold in Europe have declined, not just those belonging to both brands.
Luckily, Driving reported even BMW is planning to build the electric version of the famous Mini Cooper in Germany or the Netherlands as a result of Brexit. The company recently confirmed that they will announce this project by the end of this year on whether the next generation Minis will be transformed into electric cars so the market can recover from declining automobile sales. However, since BMW has had a difficult time gaining profits due to the changes in taxes and tariffs, the decision to establish the project is still a fifty-fifty chance.
Due to Brexit, the European auto market experienced several brands withdrawing their investments and business activities in the area. Luckily, BMW still considered creating electric cars out of their famous and saleable Mini Coopers. Will this move improve auto sales in Europe?