mobile-menu-icon
GM Authority

Will GM Be Successful In Reaching Its 2015 Break-Even Target For Europe?

Last year, General Motors announced plans to break even in Europe by 2015. But recent sales and fiscal data suggest that the goal may not be attainable in the less-than-two-years that remain to reach the target.

At the root of the problem is the glum automotive and economic landscapes in Europe, and it’s not entirely clear whether the automotive market in the region has bottomed out just yet as vehicle sales plunged 8.5 percent to 918,280 units in January 2013, the lowest in the last 23 years. Germany has become a particular cause for concern, as the country’s automotive market is now showing signs of a decline, even though it resisted the drop-off for most of 2012. The country, home to GM’s Opel operating unit, experienced an 8.6 percent decrease in car registrations in January 2013 on an annual basis.

There is, however, an upside to GM’s overall performance in the difficult European economic climate: The General’s sales fell at a slower rate (5.5 percent) when compared to the rest of the industry (8.5 percent). Helping slow the decline was the new Mokka subcompact crossover and Adam city car from Opel.

But even with GM’s sales declining slower than the rest of the industry, its 2012 fiscal data shows a $1.8 billion European loss in calendar year 2012 compared to $700 million in 2011 — denoting that the automaker is bleeding money at a faster rate. The fiscal bleeding seems to have slowed in the fourth quarter of 2012, however, as GM’s European division reported a $700 million loss in Q4 2012 versus $600 million in Q4 2011. Luckily, GM’s highly-profitable North American division made up for the European losses, but the losses in Europe nearly wiped out the $2.2 billion earned by GM’s International Operations for the full year in 2012. Of course, the financial results are chock full of special items and adjustments that impact the earnings figure.

Do these results show that GM is beginning to fall behind its plans for the mid-decade breaking even of its European arm? Perhaps. Nevertheless, the cause of the problematic performance doesn’t seem to be The General itself, Opel, Chevrolet, or Cadillac. Instead, it’s Europe’s economic climate that will continue to drag The General down to its 2015 break-even target. Coincidentally, GM’s cross-town rival Ford faces similar problems in Europe.

GM Authority Executive Editor with a passion for business strategy and fast cars.

Subscribe to GM Authority

For around-the-clock GM news coverage

We'll send you one email per day with the latest GM news. It's totally free.

Comments

  1. Making a prognosis is always difficult, especially when it concerns the future.

    BTW:
    Wasn’t it Yogi Berra who coined this phrase?

    BTW 2: Ford sales fell 25% in the EU27+EFTA region on a month-by-month basis from January 2012 to January 2013.

    Reply
  2. I think it will be really tough to break even in 2015. I think Alex is right though, it is not GM that fails, but the European economy.

    As a native of the Netherlands, I must say though that where GM is failing, is positioning Chevy under Opel in the market. GM wants it like this: Caddy – Opel – Chevy. However, due to CO-2 bonuses and penalties,

    e.g, the turbo engines by Opel get less penalty than the Chevy Cruze, which evens out their prize, in some cases the Chevy is even more expensive.

    In comparison: for USA this would mean that a Buick Verano comes cheaper than a Chevy Cruze

    Add to this that the huge engines in the heavy Cadillacs, as compared to the fuel efficient engines in Audi’s, BMW’s, Mercedeses, Lexuses and Volvo’s, and the Caddy’s are way to expensive in comparison to what they have to offer.

    Personally I think GM will have to accept that Old Man Europe is very different from the rest of the world and what they should do is have Opel/Vauxhall call the directions for a three-brand-strategy, because honestly, I think most knowhow on how to be successful in Europe lies in Rüsselsheim.

    Reply
    1. @Centurion81 Well, the Chevy-Opel relationship is one thing to fix… but as far as Cadillac is concerned, the new line of vehicles (starting with the ATS) shouldn’t be affected by the problems you describe.

      For instance, the ATS engine lineup in the U.S. (currently) features:
      2.5L I4
      2.0L I4 Turbo
      3.6L V6

      I’d expect the first two engines to pass all kinds of European efficiency and emissions tests (objectively and perceptionally among consumers).

      In addition, the ATS will receive a diesel four-cylinder in the future — which I expect will become the engine of choice for European consumers. The high-performance V variant will follow, likely with a twin-turbo 3.6L V6 and battle with the M3, C AMG, and RS4.

      At the end of the day, GM’s global product — especially Chevrolet, Opel/Vauxhall/Buick, and Cadillac — is finally getting to a point where it can be accepted and respected by any consumer on a global level. Now it’s just a matter of perfecting it, which I expect will happen with the next generations of each model. In the meantime, the Euro economic slump won’t help 🙁

      Reply
  3. If new & improved models continue to be launched when the current dip goes (some forecast 18 months) then surly the product will be at the forefront of people’s minds.

    Reply
  4. I’m convinced building & selling Kei cars in Europe would bring in sales if not much in big profit. They wouldn’t be sold as Chevy, Vauxhall or Opel but a ultra cheap budget brand (surly there are dozens of past European company’s ex names they could reintroduce) to sell the less desirable stuff whilst Chevy, Vauxhall & Opel sell the more normal & upmarket stuff.

    Reply
  5. It has to be the European market & not the product line up, desirable cars like VXR8, Maloo, (VXR Astra, Insignia & Corsa) Astra, Insignia, Cascada & Zafira tour Biturbo’s, New Adam to name a few with New Omega imminent.

    Reply
  6. Surly if any decision making for Europe is concerned it should be done at Luton, Vauxhall’s sales are nearly as much as Opel’s difference is Vauxhall is in one country & Opel’s is Europe wide & beyond. It is Vauxhall that is making all the right decisions.

    Reply
    1. How many domestic volume manufacturer does the UK have compared to Germany? In Germany, Opel has to compete with Volkswagen, Ford Germany, Audi, Mercedes, BMW and then added the import brands. In other big European markets such as France or Italy they also have volume automakers. Why should the decisions be done in Luton, if they are done in the U.S., where GM has the final say, and Germany? Have you ever dealt with the corporate structure of Opel and Vauxhall? GM UK ltd. is more like a distributor and even the factories are directly owned by Adam Opel AG. The good decisions for the UK are done in Ruesselsheim.
      http://www.opel.com/experience_opel/company-information/facts-figures.html

      Reply
      1. Wrong again, the factories in the UK are owned by GM, and recently GM have also taken over those in Germany which were previously owned by Adam Opel AG as part of the financial restructuring of GM Europe

        Reply
      2. @kuku:

        Other domestic volume manufacturer on Great Britain are:
        – Ford
        – Nissan (Sunderland)
        – Toyota (Burnaston and Deeside)
        – Honda (Swindon)
        – Mini (BMW) (might be questionable if “volume”)

        MG is still listed with the factory in Longbridge. Do they produce cars there?

        Reply
        1. Observer7 – just a few notes: Ford do not make cars in the UK any more, they have (until it closes shortly) a Transit van plant at Southampton and component production at Dagenham. BMW is classed as a volume producer but most go for export. MG is the wierd one! The cars are imported almost fully assembled from China and then a few bits of trim are added at Longbridge but volumes are tiny, their sales are even lower than Chevrolet and that’s saying something

          Reply
  7. @V8 Jon: Decisions are the same, Vauxhall’s success is more due to British chauvinism.

    @ Alex: Ok, let’s take a factsheet then:

    In The Netherlands:
    Cadillac ATS starts @: € 51.530,- (source: cadillac.nl)
    BMW 3 Series starts @: 32.898,- (source: bmw.nl)
    Audi A4 starts @: 32.800,- (source: audi.nl)

    Conclusion: Cadillac outprices itself or is outpriced by fiscal policies.

    and then:
    Opel Astra starts @ 19.495 (opel.nl)
    Chevy Cruze starts @ 22.295 (chevrolet.nl)

    Opel Corsa starts @ 12.995 (opel.nl)
    Chevy Aveo starts @ 14295 (chevrolet.nl)

    Conclusion: GM’s effort on brand positioning is totally wasted by fiscal policies. Opel is conceived as the better, more expensive brand with better rest value (and also has a lot better rest value), Chevy is perceived as the budget-brand (former Daewoo), yet the prices say the opposite thing.

    This, in combination with fighting the old Daewoo-image is why Chevrolet is failing in Europe right now. That the cars are mainly built in Korea is not an argument – Toyota, Kia, Hyundai, Nissan etc. are successful too.

    (please excuse my bad grammar at some points, I am no native speaker ;-))

    Reply
    1. When comparing start prices for Opels and their corresponding Chevrolets, I hope that you do compare the the same body styles.

      In Germany, both the Astra 5-door hatchback and the Cruze hatchback start at 14,990 €. The Astra sedan starts at 18,270 €, the Cruze sedan at 19,790. Interesting, but i am not informed about vehicle details – motorisation etc.

      BTW, when the Korean built Chevrolet are too expensive, maybe GM should decide to build them in Europe. The Opel factories, so I heard, have lots of free capacity.

      Reply
  8. Unlike the US where a central authority actually has power, the EEC has little leverage to control its member states and their finances. As a result local politics has damaged European ability to respond to the global economic meltdown.

    Bottom line (since that is what matters here), Europe/EEC is several years behind the US economy. Therefore there will be no breaking even in 2015. 2018 is the likely most optimistic time.

    Reply
  9. Vauxhall’s success is more to do with excellent products, a performance range and the fact everyone likes them be it 17 year olds or 80+ year olds & everyone in-between. They sell various models catering for different tastes are seen as more upmarket than Opel and unlike Opel & other European manufactures keep vans separate from cars.

    Reply
    1. Don’t disagree Jon but I think also Vauxhall’s continued success at the same time Opel is on the slide (and more so Chevrolet of course) is also about brand management, sometimes GM are their own worst enemies. Given a free hand GM would love to be able to badge everything across Europe as a Chevrolet, it would suit their claim for Chevy being a global brand even though it is not and not ever likely to be – it is a brand that is very strong in the US Canada and South America. GM cannot understand why Europeans will not buy them in the same way. In the UK Chevrolet has been on sale for years now and is still being half sold by reluctant Vauxhall dealers, Dacia launched in the UK 2 months ago and I predict that this month they will overtake Chevrolet in sales – that’s how bad it is. GM were seriously looking at the end of last year about the feasibility of replacing the Opel brand with either Chevy / Vauxhall / Ranger or Buick in Europe none of which would have made much sense (apart from maybe Vauxhall in some markets) but with exception of Vauxhall in the UK their track record is not good. As for British chauvinism being the reason for Vauxhall’s success why do the English buy so many crummy Toyotas / Nissans / Hondas etc?

      Reply
    2. @V8 Jon:
      “Vauxhall … unlike Opel & other European manufactures keep vans separate from cars.”

      What does that mean? Seaprate in what sense?

      Reply
    3. V8 Jon you are doing as if Opel and Vauxhall were not the same.

      Reply
  10. The Japanese cars here tend to be purchased by more mature buyers

    Reply
  11. Japanese car sales are also not that strong here too, not helped by the Yen v Pound exchange rate cars such as Mitsubishi Evo & Subaru Impreza being withdrawn from UK sale.

    Reply
  12. @ V8 Jon: Vauxhall and Opel sell the same products and every Vauxhall VXR is the same as an Opel OPC version, so that can’t be the explanation to why Vauxhall’s relatively selling better than Opel.

    Reply
  13. VXR8 & Maloo are Vauxhall products exported from Oz, Opel don’t have these & nether had Monaro. There are certain van based MPVs Opel sell too that are not in Vauxhall’s range as well as Astra saloon. This is obviously due to the European market being slightly different to that of the UK’s.

    Reply
    1. Does GM really sell the Holden “ute” HSV Maloo in Britain as a Vauxhall?
      These beasts here: http://en.wikipedia.org/wiki/HSV_Maloo

      Selling the Holden VF Commodore as Vauxhall VXR on Great Britain and as Chevrolet in the USA — don’t you think that this can create some headaches as to brand imagery?

      Reply
  14. Vauxhall had Monaro I mean not Opel

    Reply
  15. Where in Europe (or world) is there a better range than this? Agila, Adam, Corsa, Mokka, Astra, Cascada, Insignia, Omega, VXR8, Maloo, Meriva, Zafira, Zafira Tour, Antara, Ampera.

    Reply
  16. Ok, I can see what the OZ-models can do for Vauxhall image-wise. Do you really think this is the full story behind the current difference?

    It has to be taken into account as well that the british car market is a rare exception to the rest of Europe:

    2012 UK: sales up 5% (best since 2008)
    2012 Europe as a whole: down 8%

    Reply
  17. Not sure why it is, other than excellent products & a strong following of each be it V8’s, Astra’s, Insignia’s & Zafira Tourings. 17 year olds in Corsa’s or O.A.Ps in Agila’s everyone has a favourite. Cars that have been and gone such as Monaro, Calibra & Zafira VXR still have a following and a list of eager buyers should they return. Vauxhall is right on the pulse of the British buying public.

    Reply
    1. Opel fares differently in different countries. We have had access to the aggregate numbers published by ACEA for EU and EFTA countries, and there the GM group ranks fourth with 2012 market share of 8.2% after the VW, PSA, and Renault groups, with 24.8%, 11.9% and 8.5% respectively (Renault group in ACEA statistics is Renault plus Dacia, but not Nissan).

      Seen as single brands, Opel/Vauxhall rank third with 6.8% 2012 market share after VW and Ford with 12.8% and 7.6% respectively.

      These are European averages. According to an Opel press release about the order of 1250 Astras by the Hungarian police, Opel is market leader in that country. Unfortunately, I don’t how where and how to consult statistics of car sales in Hungary, and neither in the UKoGBaNI (the Vauxhall fans here might give me directions, please!).

      As nothing is more successful than success, the success of market leader VW reinforces it by itself. People just trust that there can’t be nothing wrong with a VW and the resale values are good. So why look elsewhere?

      Reply
      1. As to British market statistics, I found them at http://www.smmt.co.uk
        I had even found them some months ago, but forgotten about it.

        Reply
      2. I am not sure what V8 Jon problems are, but Opel and Vauxhall are seen as a single brand by GM written as Opel/Vauxhall. Buick and Opel are indeed still seen as separate brands, where Buick sales are not listed in the Opel statistics. Not sure, if GM will sell the Commodore as a Vauxhall in the UK again.

        Reply
  18. These things take time & although VW are good they ain’t perfection I’d take a Astra over a Focus or Golf a Insignia over a Passat or Mondeo & a VXR8 over a M5 or S6. Strong competition is good competition.

    Reply
  19. It maybe because the UK kept their Pound and din’t go that €uro fad.

    Reply
  20. Makers with excellent build quality, sporty ranges, V6 & V8 models and strong performing diesels tend to do well in the UK hence why top 5 manufactures are Ford, Vauxhall, VW, Audi, BMW.

    Reply
  21. Bring on the competition 😀 as for Vans separate many brands considered down market & liable to breakdown have vans with windows & seats in sold as cars, they tend to be ugly & look cheap.

    Reply
  22. Wouldn’t life be boring if everything was the same, they are similar sister company’s if you like. I wish Opel all the success I’m not against them I’m just a Vauxhall man.

    Reply
    1. Vauxhall is Opel or could you explain me why the Vauxhall brand is different, if their vehicle lineup is German engineerd. You’re also indirectly an Opel fan and again Vauxhall is not a company compared to Adam Opel AG, GM Korea or GM Holden! You don’t like to hear the facts that Vauxhall is just a badge on right hand drive Opel vehicles in the UK, and only confuse us all.

      Reply
      1. Totally wrong, both Vauxhall Motors Ltd and General Motors UK are registered as seperate companies from Adam Opel AG. Vauxhall has a seperate Chairman and Managing Director, Duncan Aldred. All 3 are part of General Motors Europe in the same way that GM Holdens PTY and GM Korea is part of the GM Asia Pacific region. Which brings us back to brands – Vauxhall has brand identity and loyalty as well as a long heritage that has been backed with excellent marketing. Vauxhall was also the 1st oversees unit that GM purchased in 1925, Opel was bought 4 years later in 1929.

        Reply
        1. One sees the success of brand loyalty. That’s what one calls a fan!

          Reply
        2. David — the reason those are actual companies is for legal reasons, as they need to be legal entities to conduct business. But outside of that, Vauxhall is no more than a distributor, sales and advertising co-ordinator of rebadged Opels.

          Reply
          1. Alex – how little you know about UK Company Regulations! In order to be no more than a distributor, sales and advertising co-ordinator of rebadged Opels could be done from a small office employing about 50 people. Vauxhall is a manufacturer of vehicles, the 3rd largest in the UK, it is the largest LCV manufacturer and LCV exporter in the UK. In terms of employee negotiations, submission of tenders for work such as the new Astra at Ellesmere Port, negotiations with Renault for the next Vivaro, and the specific product requirements for the UK are all taken independantly of Opel in Germany. As is already on another thread Vauxhall have a team of engineers at thier test facilty to modify if required any Opel models in terms of suspension dynamics. Vauxhall also have their own unique warranty agreements and used car infastructure system. Vauxhall account for over 20% of all Vauxhall / Opel sales in Europe – more than Opel itself in it’s home market. So don’t try and belittle Vauxhall – if it was not there GM in Europe would be gone by now

            Reply
            1. wooo! way to go dave bout time somebody stuck up for vauxhall

              Reply
            2. Whow, David, you are real fan!

              Now let’s look at the numbers. Total Opel sales in the GME region are not yet avaiable for 2012, but for 2011.

              In that year, Opel recorded 1’213’602 units sold, out of which 268’275 wer sold in UKoGBaNI, which makes up even 22.10% of all sales. Germany was different — 268’375 units, i.e. 100 more, which is 22.11% of all sales.

              For 2012, I have only the sales published by ACEA, i.e. for EU27+EFTA, which gives a total of 815,961 units, out of which 215,983 in the UK, and 213,627 units in Germany. This time 2356 units more in UKoGBaNI than in Germany, or 1.1% more. As was reported, while the market shrunk overall in EU27+EFTA from 2011 to 2012 by 1,064,911 units or 7.8%, UK was one of 8 EU-countries with growth from 2011 to 2012, and with the largest growth by unit numbers (+103,356 units or +5.3%).

              By market share, the UKoGBaNI is the strongest of Opel/Vauxhall in Europe, see the figures published by Opel for 2011:

              1. United Kingdom 11,9
              2. Greece 11,3
              3. Hungary 10,2
              4. Germany 7,7
              5. Netherlands 7,5
              6. Austria 7,2
              7. Portugal 7,1
              Belgium & Luxembourg 7,1
              8. Poland 6,8
              9. Spain 6,7
              10. Italy 6,3

              Reply
        3. David, the relations between the various companies of the GM complex are not so simple.

          BTW, Chevrolet Deutschland GmbH is a wholly owned subsidiary of GM Korea (formerly GM Daewoo Auto & Technology) based at Incheon, Korea, not of some GM Europe entity.

          As far as I can see, there is no entity called “GM Asia Pacific”, but a “GM International Operations” which includes all of Asia, Oceania, and Africa (the former USSR is also covered by GME).

          Info based on reading the 2011 GM Annual Report.

          Reply
          1. Observer7 – You’re right they are complex, I’m showing my age, the Asia Pacific region was renamed as GMIO. The figures for 2012 show Vauxhall with 11.36% and I believe Opel is 6.7% (need to varify that one) and in the 1st month of 2013 Vauxhall are on 12.71%

            Reply
  23. No problems here. & Vauxhall or Opel ain’t going anywhere any time soon both Established brands in Europe as for the V8 Vauxhall’s I’m sure they will continue to come to the UK as Vauxhall’s why would anyone give up on a market? Well over a decade we’ve had these now and as of next year Ford is to launch the Mustang here.

    Reply
    1. Guys — according to reports, the VXR8 is done for:
      http://gmauthority.com/blog/2012/05/vauxhall-reportedly-passes-on-chevrolet-ss-based-model/

      The car sold less than 50 units in 2012 — and I’m not sure if it was profitable at that volume. People simply don’t buy Vauxhalls for V8 power.

      As for the Mustang, that’s a whole different story. It will be a mainstream sport coupe that will have a much more attainable starting price (around $20,000 USD), but will also be capable of being specced out to over $60,000, a price point where it will offer performance rivaling some supercars.

      Reply
      1. Couldn’t a Opel/Vauxhall twin of the Buick Lacrosse take the place in the brand’s lineup of the VXR8?

        With a wider choice of engines, of course, and maybe kind of an OPC/VXR variant.

        Reply
        1. The market for luxary cars shrinks in Europe, and don´t forget the market leader in this segment Audi, BMW and Mercedes. This is one of the reasons why GM wants to concentrate the Cadillac initially on China and North America, because there is much room there for Cadillac than in Europe. If Opel/Vaxuhall wants to sell a luxuary car here they first have to improve their image. Buyers in this segment don´t buy only the car but also the image. The LaCrosse needs to be different from the Insignia not only in size but also in technology. The Insignia offers more features than the US version of the LaCrosse.

          Reply
          1. Daniel L. points to the typical hen-egg problem, when he says “If Opel/Vaxuhall wants to sell a luxuary car here they first have to improve their image.” — but how can they improve their image without offering up-market cars? The Adam might be a first step in that direction.

            The Buick Lacrosse is as different from the Opel/Vauxhall Insignia as it is different from the Buick Regal, which is a twin of the Insignia (the first 45,000 Regals for North America have been built in Rüsselsheim with most of the same stamping tools as the Opel/Vauxhall Insignia).

            The other European subsidiary until some years ago, Saab, had developed a car on the same Epsilon II platform as Regal/Insignia and LaCrosse, the 9-5. But the company went bust before that car entered the market. So a car of that size is missing in the European lineup.

            That void could be filled with a Opel/Vauxhall twin of the Buick Lacrosse.

            Reply
      2. The Mustang is really a successful import muscle car even though the vehicle is not officially offered by Ford of Europe. I also see a lot of brandnew Dodge Ram pick-ups. Not in the same amount like in North America of course, perhaps one or three each month, but it is more likely to see a Ram than a Toyota Tundra. Last year I saw for the first time a new Toyota Tundra in the Netherlands:)

        Reply
  24. People buy what people want, we’ve had Chevrolet, Opel, Saab, Holden, Cadillac here all setting out to replace bits of Vauxhall’s market because they thought for example they could sell more Saab’s than Omega’s only to find out later not so. So what’s wrong with having a company that do the lot and have good sales as well, regardless of what it’s called elsewhere. Where’s the more confusion one brand in a small country, or several brands with a dealer in the middle of nowhere selling many models overlapping each other?

    Reply
  25. This is to why these things take time, stability & an identity is what’s needed not here as a Holden/Vauxhall/Chevy. As a Vauxhall it’s sold more than it did as Holden & as a SS is a joke, do Chevy not want to sell any cars in Europe? Rather than learning the European market they tend to be going backwards no wonder BMW & Audi are laughing all the way to the bank & with Evo & Impreza gone too its all smiles in Germany

    Reply
    1. @V8 Jon How is the Chevrolet SS “a joke”? Is it any more of a joke than the VXR8 selling 50 units a year? 😉

      If you’re referring to its name, fear not — it’s not coming to Europe with that name… or at all, for that matter.

      And given how low volume the Vauxhall was, I wouldn’t paint that as a bad decision.

      Reply
  26. 50 is no joke & it’s more than what it sold as a Holden back in the 90’s as a replacement for the Vauxhall Lotus Carlton. BMW & Audi sell many performance saloons M5, S6 and the Vauxhall was a great alternative to the pair (you wouldn’t mistake a VXR8 for its Diesel sibling it didn’t have one) over time sales would have increased as people bored of Audi/BMW & wanted a credible replacement.

    Reply
    1. Jon — I disagree. 50 units a year is most definitely a joke. The über-expensive and exclusive Audi R8 sells more units than that. It’s not a successful sales volume no matter which way you look at it… unless we’re talking about a Rolls Royce.

      And I’m guessing those Audi and BMW buyers who want a credible replacement for their M5, RS6 (not S6), etc. won’t be seen in a Vauxhall. It’s as much about performance as it is about luxury and image.

      Reply
  27. Perhaps in a roundabout way we have hit on the problem of Chevrolet & Opel in Europe and as to why sales & image are at an all time low. Established models cut or changed manufacture enabling rivals to take full advantage of the instability, residuals effected as a result buyers then unsure stay away.

    Reply
  28. Vauxhall & Opel had the Omega & countless other large saloons, estates & coupes selling well & well respected omongst Mercedes, BMW, Audi & others. Then it was decided do away with Omega for Saab with sales worse off as a result, now with Saab gone and a new Omega immanent it will be a difficult task getting those old customers back. Maybe all this talk of sending Vauxhall & Opel further upmarket is just that talk, in the hope that people fall for it. To go upmarket the products have to reflect the upmarket ambitions of the company.

    Reply
    1. @V8 Jon The way to get the MBZ, BMW, and Audi customers back isn’t with a single brand that also makes cars that cost barely over 10 thousand quid (Adam). Brands exist for a reason, and Cadillac is well on its way to becoming a true global performance luxury brand that beats those three brands at its own game. This is proving to be the case in North America right now, and with due time, it will also prove to be the case elsewhere in the world… Europe included.

      The talk of Opel/Vauxhall going upmarket is all due to Chevrolet occupying pretty much the same segments at the same price — leaving the two to compete with the Bow Tie brand. The alignment with Buick also seems to be pushing the upmarket move of Opel and Vauxhall… I’m still not sure about this, though.

      Reply
  29. The Buick Lacrosse is an excellent car but its no replacement for a V8. I would do it like this lacrosse as a 4dr coupe to fit in below Omega with VXR8 above that. Do a VXR lacrosse leaving the Omega as pure luxury. A large SUV would signal the intent as a upmarket brands.

    Reply
  30. The big money £££ $$$ €€€ is in the bigger stuff

    Reply
  31. Just because Audi, BMW & Mercedes have it don’t mean that GM should let them keep it. All market share is hard fought (with some Cadillacs & Chevys getting 0 sales) the cars, the dealer experience & yes badge all play a part as well as plenty more factors.

    Reply
  32. Since we talked a lot about market shares of Opel/Vauxhall and other GM brands in Europe and various countries of Europe, I thought I should pull together some hard statistical figures underpinning serious arguments.

    So here are the the brands with a market share of more than 5% in ACEA’s “enlarged Europe” and in the four largest car markets of Europe, namely Germany, UKoGBaNI, France, and Italy. The last two lines give the combined market share of those brands with more than 5% each, and the sum of the first 5 brands.

    I have normalized the unit counts to 8 digits so that the table can be read with proper columns; the percentages are normalized to 2 digits before the decimal point.

    “Enlarged Europe” of ACEA consists of the 27 EU-member states, plus the EFTA-members outside of it, i.e. Iceland, Norway, Switzerland plus the Swiss appendage Liechtenstein.

    units share Region/Brand
    12,053,904 100.00% EU27+EFTA total
    01,541,643 12.79% Volkswagen
    00,910,318 07.55% Ford
    00,815,961 06.77% Opel/Vauxhall
    00,795,972 06.60% Renault
    00,774,435 06.42% Peugeot
    00,673,647 05.59% Audi
    00,656,628 05.45% Citroen
    00,633,142 05.25% Daimler
    00,614,779 05.10% BMW
    61.53% Sum of 5% or more
    40.14% Sum of first five

    03,082,504 100.00% DE total
    00,672,921 21.83% VW
    00,284,494 09.23% BMW, MINI
    00,283,006 09.18% Mercedes
    00,266,582 08.65% Audi
    00,213,627 06.93% Opel
    00,206,128 06.69% Ford
    62.51% Sum of 5% or more
    55.82% Sum of first five

    01,921,052 100.00% UK total
    00,266,261 13.86% Ford
    00,215,983 11.24% Vauxhall
    00,173,447 09.03% Volkswagen
    00,118,836 06.19% Audi
    00,117,355 06.11% BMW
    00,099,394 05.17% Nissan
    51.60% Sum of 5% or more
    46.43% Sum of first five

    01,898,760 100.00% FR Total
    00,343,345 18.08% Renault
    00,305,440 16.09% Peugeot
    00,266,430 14.03% Citroën
    00,154,434 08.13% Volkswagen
    56.33% Sum of 5% or more
    61.20% Sum of first five

    01,402,905 100.00% IT total
    00,294,855 21.02% FIAT
    00,113,596 08.10% VW
    00,099,029 07.06% Ford
    00,078,935 05.63% Opel
    00,071,433 05.09% Lancia/Chrysler
    46.89% Sum of 5% or more
    46.89% Sum of first five

    Reply
    1. Thanks Observer7 for a interesting post

      Reply

Leave a comment

Cancel