Up to now. GM saw a limited, Europe-only role for Opel. That’s pretty much a death knell. No serious brand can survive on Europe alone. With the weak Euro, it would be utter stupidity to try to survive on Europe alone. Finally, this fact dawned on GM. Opel now received the o.k. to expand into markets outside of Europe. You probably can guess which markets they have in mind.
“We will begin distribution in China this year” said Opel’s Nick Reilly to Automobilwoche [sub]. Opel will also compete with Holden in Australia. Opel will be sold in another country in Asia and two markets in South America. Their identities are being kept under wraps.
Opel isn’t completely new in China. About 4,000 Opels were sold in the Middle Kingdom, unbeknownst to most. In Australia, some were sold rebadged as Holdens. And of course there is the huge GM presence in China that sells rebadged Opels as Buicks. Whether GM will allow them to seriously compete in China remains to be seen. A few years ago, Opel was sold in Japan, but met with a resolute yawn.
Opel needs the business. In the first 6 months, Opel sold 4.5 percent less in Europe than in the year before. Losses so far $637m. More to come.
I saw an Astra in Shanghai in 2007, and it was the only one I saw on that trip. I suppose it provides an option for the few people who want a hatchback GM car, as the Buicks and Chevys at the time were sedan-only.
GM could always offer them over here using their Buick dealers…
So Opel will sell Opel badged cars in the same market as their rebadged cousins i.e. Buick or Holden.
“Would you like an Opel Astra or a Holden Astra sir?”
This is pointless and smacks of GM US strategy where brands compete with each other with the same (although slightly restyled) models.
What is important is that GM Europe continue to develop good quality small platform vehicles that can be sold across the world under the appropriate local brand
I don’t understand. Opels, Vauxhalls, Chinese Buicks and Holdens are all pretty much the same cars and trucks. Some models even have the same names. Why is it so crucial that the Opel brand be used in regions where the same cars are already sold? Won’t the introduction of Opel create cannibalization of existing GM brands in other regions? What exactly would be the difference between an Opel and a Buick in China? Or a Holden and Opel?
Plus ca change, plus c’est la meme chose.
I’d agree on this. Regional brands can work well as they allow focus on a particular market’s peculiarities. It works even better when you can leverage global engineering and design resources and combine them with that localized marketing expertise.
It goes badly when that brand does go international and loses focus.
GM should accept that they’re not structured like, eg, Toyota or Ford. They don’t have to be, either. You don’t need Buick in North America, you don’t need Opel in China, and you don’t need Chevy in Europe.
Didn’t they already try this in the early 1990’s and then Opel bitched that they were being diluted and becoming unfocused by having to do all the engineering for the non-NAAO market vehicles?
How will this time be different?
This time it’s China. Opel wants on the gravy train.
I cannot imagine the thought process behind this at all. I really thought postbankruptcy this type of thing would be banished from GM.
Opel as a Europe only brand is fine, that doesn’t stop them from selling their cars as Buicks in China, Holdens in Australia (which was done before up until they replaced them with horrid Daewoos) and Chevrolets in Africa, Central and South America.
If this story is true then Opel would be competing with itself, the only difference is the badge.
Opel Vectra = Holden Vectra = Vauxhall Vectra, and I don’t know why they didn’t call the Saturn version the Saturn Vectra.
Opel Astra = Holden Astra = Vauxhall Astra = Saturn Astra.
Like everyone else … I don’t get why they would want to sell the same car under different names in the same market. The only difference is the badge and minor trim, anyway.
In Oz, they pretty much weaned off Opel rebadges when importing the Euro Corsa as the entry-level Barina became cost-prohibitive. They’ve been sourcing the Daewoo equivalents instead since then – Aveo (Barina), Cruze (Astra), Epica (Vectra). The Combo is an old Opel design, but all the passenger cars bar the Zeta variants are Daewoo-sourced. So there’s theoretical room for a European alternative to Renault, Peugeot, Fiat etc. Not much of a market, though.
As for China, I guess if you’re looking for a small sporty hatch or an Insignia, Opel could have a shot. But it’s more of a sedan market, which you can already get at Buick, so they’re aiming at a niche. Of course, in a market that size, a niche probably looks pretty good.
I think we all know that the real target is China. But, one quick note for everyone out there with the Astra comments.
Holden no longer sells the Astra. It now sells the Cruze. With that said, I am not sure that Opel should compete in Australia.
Yay! Cannibalistic company is cannibalistic! Up next in the news, VW Group announced the expansion of SEAT and Skoda into the U.S. market to compete with Volkswagen Golfs and Passats.