According to an official statement from GM’s China branch, GM’s Opel brand will not be making its way to China. The statement comes as a contradiction to several reports in 2010 and earlier in 2011, which state that the German brand will expand to markets outside Europe, including Australia, Latin America, and China.
Additionally, the statement is in stark contrast to several German media outlets reporting that Opel was planning on establishing a manufacturing plant in China with a capacity of 30,000 to 40,000 units per annum.
The GM Authority Take
This is more confusing than calculating the United States’ GDP while factoring in inflationary probabilities and credit worthiness (unfortunately, I’ve done both before). On a more serious note, it’s no secret that the Chinese automotive market is red hot — so it would only make sense for Opel to seek expansionary opportunities in the market.
And that sounds great, until we happen on the fact that most of Opel’s vehicles are already sold in China under the Buick nameplate. In fact, that’s what was so confusing to us back in March of last year, when we discovered Buicks selling alongside a trial sales run of Opel models in the land of the Red Dragon. For instance, the Opel Insignia is identical to the Buick Regal and the Excelle line is simply the Astra.
Then there’s also the possibility that GM and SAIC, The General’s joint venture partner in China, have a legal arrangement that prevents Opel vehicles from being brought into the country. Even then, there’s no reason to revisit the badge engineering days (that GM is too well-known for) by selling Opels and nearly-identical Buicks in the same market.
Finally, the fact that the product portfolios of Buick and Opel are expected to merge (in all but name, of course) in the near future proves to us that the co-existence of the two brands in a single region won’t happen… at least in the foreseeable future (or until the actual brands are merged, which we expect to occur in precisely a googillion decades).
We can’t imagine this sitting all too well with Opel executives or employees… but how do you feel about Opel, Buick, and their availability in a single country (like China)? The comments are awaiting your input!
Source: Gasgoo
Update: Gasgoo was mistaken. Opel will be making its way to China, but it won’t be manufactured in the Land of the Red Dragon. Read more here.
Comments
Or they can sell it a sportier brand in China to differentiate from Buick i.e. Insignia and Regal
Not a bad idea, actually. But I wonder if the similarity in the body styles would hamper that…
GM is the boss, Opel by itself wouldn’t have the ability(capitol) to do it anyway.
If GM says no, then its no. You are a brand under GM, No means No…
I dont get the whole German ego trip here, it would litteraly be like if GM had said we are going to introduce the pontiac or saturn brand to China, and then decided not to. neither brand would have recognition. There is a reason why GM is developing brands specific to the Chinese market with other chinese companies.
Agreed that Opel can’t really exist by itself. However, if it were a global brand — and if it were a free-standing organization sans GM — I think a good case could be made for its existence. In other words, Opel’s inability to sustain its own operations is largely due to parent GM’s limitations of not allowing it to do certain things and/or expand to geographic markets (like China).
And GM doesn’t really have a plan in China, simply because anything (literally, anything) on wheels will sell in the country today. GM’s and SAIC’s “creationism” nature — where they create brands that kind of sort of slot around the core Chevy, Buick, and Cadillac brands, will end up hurting them in the long run — when the market ceases to grow or (worse) begins to recede. That’s exactly what occurred with Pontiac, Olds, Hummer, and Saturn. It sounds good for a few years… but is a total failure long-term.
Badge Engineering destroyed GM in terms of image and long term profibility before and it will do so again.
They have the Chevrolet Cruze 1.6 Turbo ………
I still think that in the originally plans of GM 2008 there was no room for Opel and if GM did not get a whole package of money and tax reductions for the plants in Germany from the German government they would have sold Opel just like they have sold Saab.
Believe it or not Chevrolet is cannibalizing Opel (Cruze ,Orlando , Captiva , Malibu ).
Thats why GM slows down the sellings of Chevrolets here in Europe by giving poor service and dealerships ( I guess ) and you have to wait more than 5 months when You order a Cruze. (These are my thoughts about it and I think its not far away of the truth ).