Virus forces Renault Samsung, BMW to cancel launch events

The Renault Samsung XM3 / Courtesy of Renault Samsung

By Nam Hyun-woo

Renault Samsung, BMW and several other major auto brands have called off their scheduled launch events for new vehicles as the coronavirus sweeps the country.

Industry officials said the cancellations will have a negative impact on vehicle sales because the events are considered crucial marketing tools in the early stages of sales campaigns.

Renault Samsung canceled the launch and test-drive event for the XM3 crossover, which was scheduled for March 4, it said.

The carmaker said the decision is in accordance with the ongoing “national effort to prevent the further spread of the virus.” But it said the vehicle would still be launched and the company was preparing promotional events without mass attendance.

The XM3 has been at the center of Renault Samsung's plan to introduce six new models here this year and it is hoping the XM3 will provide fresh impetus in terms of lifting the company's domestic market share.

The vehicle's design was led by Korean designers at the Renault Design Asia Studio and will be produced at Renault Samsung's plant in Busan, the country's second-largest city.

Once manufacturing begins, the XM3 is expected to have greater advantages from company and consumer standpoints compared to imported Renault models.

According to the company, it received about 2,500 pre-orders for the XM3 from Feb. 21 to 24, which is significant given that the company sold just 4,303 vehicles domestically in January.

Meanwhile, Renault Samsung is aiming to manufacture XM3s for the European market at its Busan base, to prevent a possible production vacuum after it ends production of the Nissan Rogue at the plant in March. However, the company is yet to receive Renault headquarters' confirmation to proceed due to labor disputes, meaning Renault Samsung's earnings this year depend largely on domestic sales of the XM3.

“Though the event was canceled, Renault Samsung will continue providing rich information on the XM3 to promote the vehicle's value,” a company official said.

The new BMW 2 Series Gran Coupe / Courtesy of BMW Korea

BMW said it has called off the unveiling and test drive event for the new 1 Series and 2 Series models as the virus situation worsens. The brand had initially planned to hold the event on Feb. 18 and 19.

“We believe holding a large event is not good for the safety of the press and the public, given the circumstance of the COVID-19 spread in Korea,” a BMW Korea official said. “Currently, we don't have plans to rearrange a large event for the 1 Series and 2 Series vehicles and will keep an eye on developments and progress of the situation.”

Ferrari made the same move, canceling its planned showcase for the 812 GTS and the F8 Spider scheduled for Feb. 27. Lamborghini called off a media premiere for the Huracan Evo RWD slated for March 2.

“In terms of volume cars, launch events play a significant role in early stage sales campaigns, because media exposure grabs public attention of the vehicle and amplifies the new product effect,” an auto brand official said. “Since early sales account for a significant portion of a vehicle's entire sales campaign, canceling the media event must be a bitter decision for the brands.”