GM Loosens Opel Reins
Opel to be sold beyond Europe
General Motors is down to managing four brands in North America now that Pontiac, Saab, Saturn and Hummer have been sold or shut down.
Cadillac, GMC, Chevrolet and Buick comprise its North American brands, but the company also owns Holden (Australia), Daewoo (Korea), Vauxhall (UK) and Opel (Europe). Holden and Daewoo are sold beyond their local markets, but Opel is not. Vauxhall is Opel in the UK and other markets, selling the same models under a different brand.
Up until now, Opel has been sold only in Europe. Its cars, which have been reworked and sold in the United States as the Saturn Astra, Buick Regal and Chevrolet Cruze, are a good fit for other markets, but GM has kept tight reins on the brand. However, that is about to change.
Opel Initiative
According to Crain Communication’s Automobilwoche (Automobile Week), a sister publication to Automotive News, Opel will soon be sold in China. GM has been enjoying a booming success in China where its Buick brand is a national darling. Chevrolet is sold there too as are some Daewoo products.
Interestingly, Australia is another market where the Opel brand is slated to be sold. That’s Holden territory, but the products likely to be sold down under should be different. Indeed, although the Opel Astra inspired the Holden/Chevrolet Cruze, they are not the same cars. Conceivably, Opel could sell the Astra there too.
Other Markets
Opel will also be selling its cars in two unidentified South American market and one unnamed Asian market besides China. Likely, some of those models will compete against existing GM brands which could present a problem for GM if the Opel introduction isn’t carefully managed.
Following its 2009 bankruptcy filing and reorganization, the General Motors Company has been on a fast track to remaking itself. In North America and elsewhere, capacity has been realigned to match demand, reducing model availability to their lowest levels in memory.
Opel China
Opel isn’t entirely knew to China as Automobilwoche reports that its cars have been on sale there since mid-2009, with 4,000 units sold. That’s chump change in the world’s largest consumer market, something GM will rectify when the import reins are loosened.
Expect GM to continue to look at new markets for Opel, but the United States and Canada won’t be considered. GM has learned its brand management lesson and is doing what it can to bolster its four surviving North American brands.
Reports surfacing earlier this week revealed that Indian automotive manufacturer Mahindra has unilaterally cancelled its agreement with its American distributor, Global Vehicles U.S.A., Inc. (GV), to sell its trucks through the dealer network assembled by GV. That action, which seems entirely illegal, will likely force GV to respond by making sure that the trucks stay out of the states until the matter is resolved. If Mahindra does not back down, it could be years—if ever—before a single Mahindra truck is sold stateside.
