Opel Allowed To Venture Beyond Europe
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.
Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.
More by Bertel Schmitt
Comments
Join the conversation
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.