When we initially heard about the Drive Opel 2022 business initiative of GM’s European arm Opel, we knew that it entailed a comprehensive change in the way GM conducted its business in the region. We also knew that the plan called for breaking even in 2015 along with 23 new or revised Opels and 13 new engines by 2016. What we didn’t know, however, were the specific business-related objectives set out by the plan.
Luckily, Opel recently specified these objectives, and they consist of:
1. Break-even results by mid-decade
2. Significantly increase revenue and variable profit by greater cost-efficiency, as well as:
- re-focusing go-to-market strategy
- improving image of Opel brand
- strengthening market share
- entering new markets and segments
3. Launching 23 new models and 13 new engines between 2012 and 2016
The GM Authority Take
Seems like all’s in order here, as the objectives are all sound business practices through and through, as is the (responsible) closing of some factories here and there (in Europe) to reduce overcapacity.
In particular, the “entering new markets” big has us rather intrigued. Will Opel continue expanding internationally — outside of Europe, Australia and Chile?
And of course, we’d love to get our hands on some of the details (and timing) of those 23 new models and 13 new engines… if you’re informed and are willing to share, please send us a tip about any of these future product plans.
Comments
23 modls and 16 engines that’s pretty good, but Opel has to first improving its image if it want to compete against VW.
I sure do not have any inside dope, I have only my observations of what GM is doing, and draw my conclusions from there.
GM disposed of the inconsistent brand policies, where Opel developed cars could be badge-engineered as Chevrolet, Saturn, Holden, and even Cadillac.
Also GM is now pushing two global brands, namely Chevrolet and Cadillac, as Dan Akerson explained in e.g. the preface to the 2011 Annual Report. plus a number of brands which “are being carefully cultivated to satisfy as many customers as possible in select regions”, namely Holden, Buick, GMC, Baojun, Opel and Vauxhall.
Actually, it looks like Holden is representing Chevrolet in Australia (and New Zeeland?) by badge-engineering Chevrolet cars (and vice versa).
Parallel to introducing Chevrolet in Europe (initially by rebadging Daewoo-developed cars), Opel is being introduced in Australia and one South American country, while Buick is repositioned by offering slightly modified Opel cars (and is limited to North America and China).
The separation of Opel and Chevrolet is also very visible in Brasil – best example the Meriva, which had initially been developed jointly by GM do Brasil and Opel. The successors to Meriva A are an Opel Meriva B, and a very different Chevrolet Spin.
So I expect that GM will introduce Opel also in Argentina and Brasil.
Besides these new markets, Opel expects that they can grow significantly in Russa and Turkey.
BTW, the current worldwide presence of Opel can be seen at http://www.opel.com
Concering Argentina you are right. Opel will be enter this market next year.
…but the scale of sales in these markets will never solve Opel’s problems because Opel has to export from Europe and can’t produce locally. So perhaps in the long term, Opel will export 20,000 – 30,000 units a years. (In 2012: ca. 14,000)
GM don´t use the potential of the Opel brand. For example in Singapore, where Opel sold 30 cars in 2011 while Volkswagen sold around 3,200 at the same time!!! Even though Opel is not allowed to expand or even produce its vehicles in countries like China or the US they can still export many cars around the world. Volkswagen sold alone in Japan 50,600 and in Australia 44,700 vehicles in 2011, and the cars they sold there were all produced in Europe. 100,000 units in only these two markets are a lot for a brand like Opel and it would be also good for the european factories as well. GM should also start to import at least one european manufactured model to north america eg the Astra GTC,Astra 5 door ,wagon or the Cascada.
I absolutely agree with you!
100,000 units would be 10% of the current Opel sales.
Opel could export a lot of more cars from Europe but Opel alone hasn’t the money to build up a big dealer network or to start a great marketing campaign in countries like Japan or China where Opel isn’t very famous.
In Australia for example Opel has only 17 dealers whereas Volkswagen has more than one hundred. It depends on GM to invest some money, but they won’t do that, because they fear cannibalization or to lose money in the short term.
@TheGerman
I understand that you can confirm Argentina based on knowledge of the decisions.
As to the numbers — well, GM does have production facilities in Argentina and of course also in Brasil. If the numbers justify it, they can churn out also Opel branded cars. Two months ago, GM has announced the investment of 450 million USD in 2013-15 to expand the factory in Rosario for a “totally new global Chevrolet vehicle”. GM had built 136.000 Chevrolets there in 2011.
I would also love to see that.
Some thousand Opels for South-America wouldn’t hurt Chevrolet much concerning possible cannibalization (which isn’t a real argument because GM also sells Chevrolets in Europe beside Opel where the market situation is much more complicated than in South-America) but it would help Opel a lot.
Opel could be positioned very upmarket there with lifestyle products like the new Adam, the Cascada and the Astra GTC, so totally different from Chevrolet or Cadillac.
The selling of facilities outside of Germany to gm in order to extend financing for gm is telling to me. Is gm setting up a potential dump/bankruptcy for opel in Germany? Does anyone know if the engineers in Germany are gm or opel badged employees?
no, the engineers at the international technical development center in ruesselsheim, germany are still employees of opel and the western facilities in spain, united kingdom and germany are still part of adam opel ag. but opel sold its facilities in hungary, poland, austria and a r&d center in italy to gm, which are now directly owned by general motors company and not by opel anymore.
Opel now is in the sama segment as VW,but why VW sold his cars like bread but for Opel its not so easy.Opel has only the Astra wich is confronted to the golf wich is historically known from the public in Europe or North Africa. VW sell dream why don’t Opel do the same??? and a question do GM use Opel factories to build the Cadillac for European markets??? if no why it don’t??? if someone has the answer???
@mohchevy:
On using Opel factories to build Cadillacs (and why not also Chevrolets) in Europe — a first step could be to build all Opels in Opel factories: The SUV Mokka is currently produced only in Korea, but Opel says to have already more than 50’000 orders to fulfill, and the Opel Antara is built in Korea and in the St. Petersburg GM factoray. This factory reports to GMIO (GM International Operations). Moving this production to Opel factories would help to use the underutilized capacities.
I agree with you for the mokka,and for the Antara purhapse because it share the same platforme as the Captiva, if its true why GM don’t build the Malibu in Germany it shares the same platforme as the Indigna…
@mohchevy:
For the Antara it’s a question of numbers; in 2011 there were only somewhat more then 15.000 built.
The same applies for building the Chevrolet Impala side by side with the Insignia in Rüsselsheim: very low numbers being sold in Europe (I have not yet seen any). The numbers are insignificant…
Different from the Buick Regal of which the first batch of 45.000 had been built at Rüsselsheim together with the Insignia.
For the Antara it is proposed only in Europe,for example in my country Algeria (North-Africa)Opel propose only the Corsa,the Astra and the Insigna not the Antara in other hand the Captiva is a best seler just followed by the Santa fé,in terme of volume it could help Opel if all the models are proposed where Opel is.
The Antara-Captiva “issue” should be solved by 2015, when both vehicles move to the new Delta/D2 compact vehicle architecture. This will create room for another mid-size SUV for both Opel and Chevrolet, allowing both brands to reach and appeal to a wider audience.
The lineup can be as such:
– Sub compact: Mokka/Trax
– Compact: Antara/Equinox-Captiva
– Midsize: new Opel/Chevy nameplate?