Opel has been a problem for General Motors since exiting bankruptcy last year. Profitability has been in a slump, even though Opel’s lineup is the newest for the European market. Rumors of GM selling Opel to either the Chinese or German automakers have also been running rampant for the past few weeks, though the company has officially come forward to say that none of them are true.
To help stop their misfortunes, Opel has called in AlixPartners, a business consulting firm with a global outreach. AlixPartners has been hired before by GM to help out with problems with brands, and this time around it is said to be helping Opel rethink what is offered with their standard and optional equipment lineups, as well as looking at ways to further cut production and engineering costs for Opel. Hopefully they can make a difference.
Source: LeftLane
Comments
Not going to presume to be Opel expert, but I would assume competition and consistency. is the real issue here. Many of the other Europe brands have an established track record, sure everylone knows Astra and Corsa yada yada. But let’s be real if you are thinking about a European manufacterer you think of BMW, Audi and other brands.
Opel seems to be the alternative brand, not the premium luxury competitor. Nothing wrong with being alternative brand, but if not adjusting to market dynamics and changes, then your value as the different contender looses stock.
My understanding is there are many issues facing the brand that need to be attended to, cost of manufacturing ect.