Chevrolet is certainly hoping that football will score some points for the company by attracting buyers in China. The company is steadily increasing their presence in the China auto market by going beyond big cities. The interactive road shows are akin to a travelling show, only here the actors are Chevy cars. And there’s help at the sideline quite literally.
The advertising deal signed with GM last year sees Manchester United receive $559 million for their 7 year shirt sponsorship agreement with Chevrolet, who have replaced Aon. $70 million goes out to Man Utd in the 1st season of the deal.The payouts increase 2.1% annually onto the 2020-21 season. Payouts are ongoing for the 2012-13 and 2013-14 seasons. The move which would only be recognized as the greatest deal ever or not in a few years time did see early collateral damage when Joel Ewanick, CMO resigned at the time.
Brand Manchester United has an immense fan base in Asia. The Chevy street shows allow people to bond with the company sometimes based purely on their love for football. And who doesn’t like kicking a ball, and passing an opinion on Manchester United gear. General Motors have big plans for the Chinese market. The company hopes to open a total of 600 dealerships in the country this year and increase the production of vehicles two fold by 2016 and the company hopes to introduce a new Cadillac each year into this fast growing luxury car market. This dealer expansion will take the total amount of dealers in China to 3500 as compared to 4400 dealers in the United States.
Last month, Chevrolet commenced sale of Chevrolet Volt in China in the hope of assessing the demand for electric cars in the country. Last year, the company sold 19.2 million units in Chinese markets, approximately 5 million more than they sold in the US. These sales were seen across Beijing and Shanghai. While a lot of Manchester United’s value is pinned on their ability to win titles year after year, what is oft taken for granted may not remain this way for years to come. The deal is of course a lot like futures trading. The team made an announcement yesterday regarding Sir Alex Fergusons retirement after 27 years at the helm, and the new team manager will be announced at the earliest. With Sir Alex departing, share market prices of the Club’s stock fell when trading started for the day.