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Analysis: Opel’s Decision To Split Marketing From Sales Duties Critical In Rebuilding Brand

Last week’s announcement by Opel to appoint Tina Müller as Chief Marketing Officer is special in significance, as it not only creates the role of CMO at Opel, but also splits responsibility for marketing and sales at GM’s German subsidiary

The move refocuses Duncan Aldred, who previously headed up Opel marketing and sales, on solely the role of sales, while allowing Ms. Müller to concentrate on building the Opel brand.

“We’ll be giving the brand back the gloss that it deserves,” said Opel CEO Karl-Thomas Neumann.

The adjustment comes as General Motors begins to turn around Opel, which has been unprofitable for over a decade, with dropping sales and a tarnished image. In recent months, the subsidiary has replaced nearly all of its executives and has set out to break even or turn a profit by mid-decade. To that end, Opel’s problems are really two-fold: its costs of doing business are too high, but its sales volume too low.

The operating unit is addressing high costs by closing at least one manufacturing plant in Europe (the facility in Bochum, Germany), while partnering with French automaker PSA Peugeot-Citroen to realize greater economies of scale in purchasing, logistics, and (in some vehicle segments) product development. Opel’s low sales volume, however, is the result of image-related problems for the brand as well as a faltering European economy that has depressed consumer confidence and buying levels, culminating in low automobile sales across the industry — something that isn’t unique to Opel itself.

Ms. Müller, who most recently was in charge of marketing for the consumer-goods firm Henkel & Co., is set to start in her new role on August 1. And that, as far as we’re concerned, can’t come soon enough — as Opel needs all the love it can get.

The GM Authority staff is comprised of columnists, interns, and other reporters who provide coverage of the latest General Motors news.

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Comments

  1. Quote from the Press Release on the Vauxhall Media site: “Duncan Aldred (43), previously responsible for marketing, stays Acting GME Vice President, Sales & Aftersales Opel/Vauxhall and Chairman and Managing Director of Vauxhall Motors. ”

    Duncan Aldred was named as Acting Opel/Vauxhall Vice President, Sales, Marketing and Aftersales in addition to his position as Chairman and Managing Director, Vauxhall Motors, and is still keeping that position.

    So, naming Tina Müller as reponsible for marketing, relieves Mr. Aldred from some of the overload of his many tasks.

    You might also see it that way.

    Reply
    1. Oops, I forgot to mentino in the second paragraph that Duncan Aldred was named to that Rüsselsheim position on January 25, 2013, to replace Alfred E. Rieck (56), who had resigned (or was made to resign). It was meant to be a provisional position anyway.

      Reply

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