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At the start of this week, General Motors (GM) started introducing its value brand Chevrolet to Europe by rebadging its Daewoo cars. Since its birth 90 years ago, Chevrolet's distribution has mainly been limited to the US and South American markets.

The launch, backed by a £4m UK advertising campaign, will replace the Daewoo brand, acquired by GM in 2002, with the all-American Chevrolet brand. The Chevrolet name is not exactly alien to European consumers thanks to countless references to 'Chevy' in song lyrics and films, but observers and its rivals believe GM may have a hard time convincing the European public to buy into the brand.

This is not least because it is a US brand, which can create its own problems for companies trying to enter European markets. 'Chevrolet is traditional Americanisation,' says one marketing director at a rival manufacturer. 'The brand's basic proposition is gas-guzzling. There could be a problem with the Chevrolet brand name in Europe.'

Autocar journalist and road-tester Ben Oliver agrees: 'GM is aware that the perception still exists, and I still think it regards it as a potential risk,' he says. 'GM is trying to push Chevrolet as its entry-level brand.'

Most of its models are being positioned as small to medium-sized value cars. The Chevrolets that will be available in Europe are not the massive gas-guzzling models such as the Malibu Maxx and Impala that exist in the US, but the Matiz city car, the Kalos five-door family hatchback and the Lacetti Saloon. If the model names sound familiar, it is because they already existed under the Daewoo marque.

Exploiting value

Professor Garyl Rhys, chair of motor industry economics at Cardiff Business School, believes that GM can exploit the brand's more positive attributes. 'In many ways what UK consumers know about Chevrolet is that it has slightly romantic associations,' he says. 'It is a quality car that is value for money. It is not being sold as a cheap car.'

Chevrolet UK's integrated marketing communications manager Paul Seabrook, who previously worked on Daewoo, agrees: 'Our objective is for the brand to become synonymous with small, good value cars.'

Another rival's marketing director is dubious, and thinks GM is making a mistake in ditching a brand that has had had millions spent on building its reputation. 'I would have kept Daewoo,' he says. 'It stood for something unique.'

GM's motives for rebranding Daewoo are not hard to understand. The marque has failed to keep up with other Korean brands such as Kia and Hyundai.

Last year Daewoo had a 0.68% share of the UK market, according to the Society of Motor Manufacturers and Traders. Rival car brand Hyundai had a 1.47% share, while Kia had a 1.3% share. Daewoo's image was also significantly damaged when it went bankrupt in 2002 and was bailed out by GM.

Chevrolet's latest ad campaign, accompanied by the strapline 'All the car you need. Plus it's a Chevy' was introduced to UK consumers last week in a series of press ads. TV advertising is due to kick off in March.

Seabrook says the TV work will be 'all about the logo'. The work has been developed by FCB and DFGW for use across Europe and adapted for the UK market by ad agency Kastner & Partners.

Clear positioning

The initial ads do not point to the fact that Chevrolet is part of the General Motors portfolio. 'The important thing for a company such as GM is to ensure that there is a clear ladder from Chevrolet up to Vauxhall, Saab and Cadillac,' says Autocar's Oliver.

Rhys says Chevrolet's performance will be crucial if GM is to catch up with the competition across Europe. 'It is very important in terms of making sure the group gets its market share near that of Peugeot and Volkswagen,' he adds.

GM says it is clear where Chevrolet will slot into its current UK offering: it will fit below its mainstream Vauxhall brand. GM also sees Chevrolet as part of a four-brand European approach, with Saab and Cadillac positioned as premium brands above Vauxhall/Opel.

Saab's decline and financial problems and Cadillac's low profile in Europe suggest there is some way to go before GM has a successful multi-brand line-up on the Continent to match rivals such as Volkswagen, which has a stable of popular brands from Skoda to Bentley.

However, one automotive insider questions the effect Chevrolet will have on GM's fortunes in Europe. 'It's a matter of expediency,' he says. 'GM says it is trying to rationalise its brand portfolio but I don't think it is serious about it. It is simplification of the line-up, and the share of profit it can make from the brand is a drop in the ocean compared with (the financial predicament) GM is trying to negotiate itself out of (in relation to Daewoo).'

Launches are already being planned for next year, which will give the US car giant time to assess how European car-buyers have taken to the marque.

In the meantime, GM has the tough job of explaining to consumers exactly what the brand is, and convincing them to buy a car that is, for the time being, just a rebadged Daewoo.

DATA FILE - CHEVROLET TIMELINE

1912: Racing driver Louis Chevrolet (pictured below right, at the wheel) teams up with industrialist WC Durant to build his own car.

1940s: Chevrolet and Durant's company help form General Motors.

1953: Chevrolet introduces the first US sports car, the Corvette, and is besieged with requests for a production version. Corvette becomes the first series-production car with a fibreglass body.

1972: Chevrolet introduces its first small pick-ups, dubbed 'light utility vehicles'.

1973: An energy crisis and California's smog forces GM to start manufacturing smaller, less 'muscular' cars.

1975: Chevrolet introduces the advertising slogan 'Baseball, hot dogs, apple pie and Chevrolet', reflecting its position as the favourite US marque.

1979: The 100-millionth Chevrolet rolls off the production line.

1994: Chevrolet produces its 60-millionth small-block V8 engine.