Does Opel Have Only Six To Nine Months To Live?

Edward Niedermeyer
by Edward Niedermeyer

Recently, Opel’s boss Nick Reilly was asked by the Süddeutschen Zeitung how long it could be before GM’s top management decides that it doesn’t want to rescue its European division Opel after all. His answer [via Autobild]:

It’s not a question of two years, but rather six or nine months, before we need to have proven that we’ve made positive progress

Even then, Reilly admits that

We need four to five years before we’re able to get back to where we were

That doesn’t sound so good, does it?

Meanwhile, there’s no sign that the positive progress Reilly needs to prove is even underway: in a German market that’s been battered (down 28.7 percent in the first half) by the end of the world’s largest Cash-for-Clunker program, Opel’s sales are down 39.7 percent compared to the first half of 2009.By brand, Opel has even fallen behind Mercedes and BMW in the German market, as full-sized sedan sales grow faster there than smaller, cheaper model sales. Meanwhile, a five-door Opel Astra won’t arrive until later this year, and the new Meriva isn’t looking likely to provide Opel with a needed short-term sales boost. Farther out, Opel is largely focusing on an A-segment city car and a possible coupe variant of the Insignia. In other words, nothing that’s going to turn the ship around. But even as Opel withers in Europe, Buick is making gains in the US and China by rebadging Opel’s vehicles. Which means something has to be done: either Opel needs a huge investment from GM, or the company risks becoming little more than a development outpost for GM… or worse.

Edward Niedermeyer
Edward Niedermeyer

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  • Octavian Criss Octavian Criss on Jul 27, 2010

    A lot of bullshit Look here http://www.jato.com/PressReleases/German%20Losses%20Play%20Central%20Role%20in%20European%20New%20Car%20Sales.pdf Opel/Vauxhall is on third place in Europe and Astra, Corsa are number 2 and 3 in top 10 models.

  • Chris_147 Chris_147 on Jul 27, 2010

    "Meanwhile, a five-door Opel Astra won’t arrive until later this year, and the new Meriva isn’t looking likely to provide Opel with a needed short-term sales boost." Yeah right, that's why I see: - five-door Astra's on the street driving and getting very good reviews in magazines. Probably you mean three-door Astra's. - the new Meriva being discussed in every auto magazine in Europe and getting very good reviews for space en finish. Yesterday I read a review where it was compared to a Renault Scénic and won the review. Mind you: the Scénic is the best seller in a class above the Meriva (+3.000€). The old Meriva sold very well and the new Meriva will sell even better. Btw, almost everybody's planning an A-segment city car in Europa. Those CO2 regulations in Europe and increasing congestion are killing larger cars. Indeed, margins for such a car are small, but there is still money to be made.

    • Talking about my home town of 30,000 somewhere in the middle of nowhere (somewhere in the middle of Germany, of course), there are 2 current generation Astras on the road that I have seen, compared to 25+ current generation VW Golfs. OK, so the Golf has been introduced in late 2008 and the Astra has been introduced in late 2009, but still, someone should have been able to pick one up by now. And the new Meriva, there´s two of them registered on the local dealer for test drives for the last 8 weeks, none sold so far. I am not impressed.

  • European European on Jul 27, 2010

    VW: "Das Auto." Opel: "Das Ende." :-D on a serious note now, doesnt opel aready have an a-class competitor, the opel agila? that's relatively new. why develop another one? (well yes, agila aint selling alot, but still...)

  • Znork Znork on Jul 28, 2010

    Bertel, you better take the wheel on Opel-storys, Edward is obviously confused.

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