The amount of disbelief and subsequent despair that filled the GM Authority offices this past Friday, after being told that GM’s Opel brand will be discontinued in Australia, was nothing short of towering. The brand’s operations were being shut down after less than a year of launching in the country — which itself seemed short-sighted, mis-calculated, and ill-advised.
11 Months
No matter which way you look at it, 11 months is not enough to launch and subsequently develop a brand, especially one that — for all intents and purposes — is brand new to a market.
3-Model Portfolio
GM/Opel had planned to sell 15,000 cars in the first three years of entering the Australian market. In reality, it sold 541 units in 2012, and 989 units in the first six months of 2013, with profit likely being even more elusive. However, Opel only offered three models in Australia at the time of its demise: the subcompact Corsa (3 and 5 door), the compact Astra (3 and 5 door, plus wagon), and midsisze Insignia (sedan and wagon); the subcompact Mokka crossover being due to arrive in September, thereby expanding the lineup to four models.
But just as 11 months isn’t nearly enough time to properly develop a brand, three (of even four) models isn’t nearly enough to spark the interests of enough car buyers. The new and unknown nature of the Opel brand in Australia definitely didn’t help, either.
20 Dealers
Adding insult to injury is the fact that Opel only had 20 dealers to sell the three nameplates across all of Australia. This amount pales in comparison to the amount of dealerships GM’s Holden brand has in the country. For the sake of comparison, there are 31 Holden dealers in Western Australia — one of seven Australian states — alone.
Holden-Opel Friction
And as if the lines between the positioning of Chevrolet and Opel in Europe weren’t blurred enough, we were told that there was a considerable amount of friction between Opel and Holden (for all intents and purposes, the Australian-market Chevrolet) in Australia — further underlining the fact that there seems to be space for only one mainstream brand from one automaker, especially in an über-competitive market like Australia. Of course, fans of Kia and Hyundai would likely dispute that statement.
Lack Of Strategy
Ultimately, all existing Opel units sitting on dealer lots will be significantly discounted, and owners of current Opels in Australia will likely be visiting a Holden dealership to service their vehicles. But having digested the development for a couple of days, we’re left with the following observations:
- Why was the launch of Opel approved in Australia in the first place given the possibility of competitive moves by rivals? If the decision was ultimately a mistake, how will the automaker avoid repeating it in other markets in the future?
- By dropping the Opel brand entirely, GM seems to have had no hope of overcoming the obstacles it encountered in the venture.
- Opel is already losing money in Europe, so why not give the brand give more time to grow and develop in Australia as well, even at a loss?
Ultimately, GM’s effort to bring Opel to Australia seems rather half-assed — especially when the exported units presented an opportunity for GM-Opel to increase European vehicle output in the face of grave production overcapacity and slumping automotive demand in the region.
Update: After publication, Opel Australia spokesperson Michelle Lang emailed us the following statement:
Opel Australia will cease operations and will commence winding down its network immediately.
In order to be competitive, Opel Australia would need to follow recent competitor price reductions, and significantly reposition the price of its core volume models. These changes, combined with the continued investment required to ensure brand awareness, result in a business which is not financially viable for any of the parties involved.
Opel will now begin analysis together with Holden regarding the potential for future Holden- badged niche product, in order to ascertain if opportunities for individual carlines exist.
Opel Australia is working closely with employees, dealers and suppliers to conduct this closure process in an orderly and responsible manner. As always, customers are of the highest priority, and Opel Australia will remain in close contact with them, to ensure all on-going obligations to these customers are met.
Customers are encouraged to contact the Opel Customer Assistance Centre on 1800 993 677 with any concerns or questions.
To that end, we feel compelled to make the subsequent follow-up comment: we’re certain that, in deciding to bring Opel to Australia, General Motors and/or Opel conducted some form of business analysis as it relates to costs and threats. Such an analysis should have most certainly included the costs associated with launching Opel in a market unfamiliar with the brand, along with various circumstances, such as the threat of price reductions by competitors. That’s just a grave reality business decision-making, one that we can only assume is present at a global powerhouse of a business such as General Motors — if not internally, then perhaps externally in the form of contractor-style analysts and business intelligence firms.
This allows us to reach the following conclusions: GM-Opel already knew of costs associated with launching Opel in Australia (“continued investment required to ensure brand awareness”), so the only variable that actually changed since the brand’s Aussie launch is the “recent competitor price reductions”; these should have been part of the business forecasting scenarios examined by the automaker before entering the market. In that regard, we stand by the analysis that the determination to launch Opel in Australia was premature, for whatever reason — be it bad business data, an incomplete analysis of possible business scenario, poor business intelligence processes, or anything in between.
As an aside, perhaps Opel Australia could have found a way to differentiate itself from the competitor(s) that had reduced prices… in other words, let’s not forget the power of a brand — especially one that’s brand new to a market, and whose image hasn’t yet been tainted, defined, or established.
Comments
I was initially shocked, strongly shocked.
But then other thoughts crept up in my mind, and I wrote it down this way:
GM’s idea is to have two global brands, namely Chevrolet and Cadillac, to be present in every country. “At the same time, the Holden, Buick, GMC, Baojun, Opel and Vauxhall brands are being carefully cultivated to satisfy as many customers as possible in select regions“, writes Dan Akerson in his introduction to the 2011 GM Annual report.
Now, in Australia they have left out Chevrolet and reduced Holden to rebadging (mainly Korean sourced, fromer Daewoo) Chevrolets as Holden. And then trying to introduce one of the other “carefully cultivated” regional brands (Opel) on the side of the local “carefully cultivated” regional brand Holden, which currently is not much more than the global brand Chevrolet in disguise.
Maybe GM is now trying to revert this anomaly of their global brand strategy, making way for the introduction of the two as global proclaimed brands Chevrolet and Cadillac in Australia, and give Holden back its own role as a regional brand, “carefully cultivating” its product line by sharing as much technology, design and products with the other regional brands, using the common resources of Opel, Vauxhall and Buick in a “hybrid global brand”, enlarging that trio to a quartet and adding the resources of the Melbourne technical and desing center to this international collaboration.
I don’t know it this is actually intended by GM, but it would make sense to me.
QUOTE from http://www.motoring.com.au/news/2013/opel/opel-quits-oz-38007
GM said it will investigate the potential of rebadging Opel models as Holdens, which could mark a return of nameplates like Astra to Holden showrooms, although how that model would be positioned relative to the locally built Cruze remains to be seen.
“Opel will now begin analysis together with Holden regarding the potential for future Holden-badged niche product, in order to ascertain if opportunities for individual carlines exist.”
/QUOTE
And which Chevrolet is based on former Daewoo? None. All Chevrolets are world models and are sold all over the world including Australia. You should forget Daewoo and living in the past.
Starting January 1st, 2004, all Daewoo produced cars exported to Europe were rebranded as Chevrolet. Well, these have been replaced by newer models in the mean time.
But the Spark, Aveo/Sonic, Cruze, and all their derivatives were also developed at the Seoul engineering center, but based on global GM architectures, of which the small-car platform which underpins the Spark and Aveo/Sonic was developed with Seoul in the lead, whereas the Delta II platform which underpins the Cruze (and Opel/Vauxhall Astra, Buick Verano, and derivatives) was developed in the International Technical Engineering Center of Opel in Rüsselsheim, Germany.
So there are no Chevrolet models that are based on Daewoo.
The Chevrolet Captiva is a mid-size sport utility vehicle (SUV) developed by GM Daewoo (now GM Korea), the South Korean subsidiary of General Motors (GM), and sold under the Chevrolet brand.
http://en.wikipedia.org/wiki/Chevrolet_Captiva
Underpinned by the front-wheel drive GM Delta II platform, GM has confirmed the Cruze development program occurred under a global design and engineering team.[25] The Company said GM Daewoo in South Korea played a leading role in the design and engineering of the Cruze, along with GM’s German-based Opel division
http://en.wikipedia.org/wiki/Chevrolet_Cruze
The Chevrolet Spark, originally branded prominently as the Daewoo Matiz, is a city car produced by the South Korean automaker GM Korea, marketed worldwide since 1998 when it replaced the Daewoo Tico.
http://en.wikipedia.org/wiki/Chevrolet_Spark
The Chevy Spark you’re referring to is the first-gen unit. The current offering utilizes a modified-Gamma II-based vehicle currently on sale.
Ultimately, Daewoo has been fully integrated into GM, becoming GM Korea — which itself is now a prominent design and engineering center for GM on a global level.
As fa as I know the current Spark was also developed by GM Korea (former GM Daewoo former Daewoo Motors).
It was presented in 2009 as GM Daewoo/Chevrolet Beat
http://www.koreaittimes.com/story/seoul-motor-show-2009-photo-spread-i
“Also called Daewoo Matiz Creative (South Korea)”
http://en.wikipedia.org/wiki/Chevrolet_Spark
http://www.lincah.com/2010-daewoo-matiz-creative
“With M300, the original Suzuki platform was replaced by GM Global Small Vehicles platform, developed by GM Daewoo engineers.”
http://en.wikipedia.org/wiki/Chevrolet_Spark
Beside name discussion: This car was developed in South Korea, so it’s not an American car! And it’s identical to those Sparks which are selled in Europe! This is, what I mainly wanted to say!
I’m fully aware of the origins of the current-generation Spark. I was simply clarifying this statement:
“originally branded prominently as the Daewoo Matiz, is a city car produced by the South Korean automaker GM Korea, marketed worldwide since 1998 when it replaced the Daewoo Tico.”
… which seems to refer to the first-gen vehicle (the Matiz).
In relation to this:
“Beside name discussion: This car was developed in South Korea, so it’s not an American car! And it’s identical to those Sparks which are selled in Europe! This is, what I mainly wanted to say!”
As I have stated previously, GM Korea is a fully-integrated research, design, and engineering house of General Motors — which itself is a global firm. Not sure how and/or why the fact that it was developed in Korea is relevant.
“why the fact that it was developed in Korea is relevant.”
It is relevant because of the discussion concerning Chevys sales in Europe! One reason why Chevrolet isn’t very sucessfull in Europe is that the cars aren’t developed in and for Europe in oppsoite to Kia/Hyundai or Skoda…
The last time I checked, the currently company currently being called GM Korea (formerly known as Daewoo Motors) is owned only be slightly more than 70% by GM, and the Korean Development Bank as one of the local shareholdes has a share with veto rights. The latter was written in newspaper articles when there were some protests in Korea against a possible move of GM production out of Korea to other countries.
Besides, the “Chevrolet Deutschland GmbH” is a wholly owned subsidiary of GM Korea, the former Daewoo Motors.
You don’t know Chevrolet if you make such a statement.
1st: Chevrolet in Europe is Daewoo rebadged, and Korean, i.e. Daewoo produced.
2nd: 40% of all Chevrolet produced on this planet comes from the Daewoo factories whose owner now has changed its name to GM Korea.
3rd: Without Daewoo, GM would not have the problems with their confused brand strategy. They would still have Opel in Europe and Holden in Australia and no issue with projecting Chevrolet as a global brand, because Chevrolet would still be limited to America (all of America, from Tierre de Fuego to the Baring Sea).
The earlier purchases by GM of car makers in other countries on other continents were “GM in my country” for decades, but Daewoo was not just a Korean car maker selling to the Korean market, but a world-wide exporter. And GM decided to rebadge Daewoo as Chevrolet, and now they have that problem which we are discussing here.
Wrong again. First, there is no Daewoo any more. Second, no current Chevrolet models are based on old Daewoos. So you either live in the past or you have very little knowledge of GM.
Or maybe you just like to spread wrong information for some reason.
It is the whole Daewoo legacy which makes the existence of Chevrolet as a global brand possible in the first place. And which makes Chevrolet the fourth most numerous brand worldwide, in current sales, that is.
Without Daewoo no Spark, no Aveo/Sonic, and also no Cruze, although in regard to the platform the Cruze is built on, the Rüsselsheim ITEZ had a decisive say. And maybe not even no current Malibu.
Without the Daewoo developed products, and without the market share conquered by Daewoo between 1995 and 2004, without the Daewoo dealer network, there would be hardly any Chevrolet rolling on Europe’s street, except some exotic pickups imported by car dealerships specialising in exotic cars.
Face reality, man!
Sure, it was mainly GM money which saved Daewoo Motors from going bust in 2002. But money does not engineer, design and build cars. People do.
What a stupid move GM made. Typical of the US of A “shoot first and ask questions later”. We are possibly the smallest market for non Japanese cars in this bracket there is! Should have done a deal with the Holden dealers and rebadged them all Holdens over years. Invariably, people connect Opel with GM and America and not with the expected and demonstrated quality of competitive European vehicles.
As usual the distributors just get told to get ****** and lose out big time.
GM, like Ford, are both passing icons that will fail here in Australia because of themselves and their parent’s behaviour – and much sooner than you think if Rudd gets back in!
As for the FBT changes proposed, maybe Opel will just the first (of course, if you are a public servant, the private sector will pay you a handsome $3,000 to remain in the luxury to which you have become accustomed under the communist Gillard and Kommandant Rudd regimes.)
Forget Gillards famous assassination line, the whole country is ‘losing its way’! But as for GM, I couldn’t care less to see the back end of them after they CRIPPLED a fantastic, dedicated and excellent subcontractor network here in Australia, and killed many of them for the sake of a few cents per part. F off and keep going!
I think GM will replace those opels with chevys in the old opel dealerships and make those chevy newer and fresher while the holdens sit on lots with little or no updates!
Most people will flock to new models that have new technology, and let cars that go years and years with little to no changes sit on lots only to be sold with massive discounts!
The people of Australia will have a choice build and sell chevys or have production of holdens come to a halt just like what’s going to happen with ford in a couple of years!
Then you will be a nation with no auto industry and the only holdens left will be imported from other parts of the world!
What’s more important being able to buy a holden or having a job to feed your kids?
Chevys coming weather you like it or not!
Get Lost.
Truth must really hurt
Answer me this, how is GM divesting from the Holden name to Chevy’s going to change where production is. Lets look at this rationally, GM is supposedly pulling all production of cars from Port Elizabeth, and reverting all resources to building in either Korea or America, selling the likes of Malibus and Sonics (Barinas to Aussies) and Cruze’s, in the near future that is. Now knowing that why would they rebuild plants in Australia after a rename of Holden to Chevy. That would in fact further catalyze the transition of Aussie built to Korean/Chinese/American built cars. Your Chevy is coming argument is ill thought to be quite honest, because a rename of Holden to Chevy will not bring production back to Austrailia, to be pessimistic. As I do like Holden cars and as a Canadian, I wish I was able to taste the forbidden fruit of the Chevy SS. To strengthen your arguement, you could have said that said that, with the higher demand of Chevy’s, Aussie production would have been able to increase the supply. But keep in mind the ever globalizing economy, production measures would have moved anyways, look at the move in production of the VW golf as an example to make NA prices on vw’s cheaper.
Tyler sighs “as a Canadian, I wish I was able to taste the forbidden fruit of the Chevy SS”.
Can’t you simply buy such car south of the border and import it privately into Canada?
I could, but it is a little bit more arduous to do.
So, “forbidden fruit” only limited by the personal judgement on the effort to result relation.
I already thought that maybe the state of Canada would prohibit a “grey import” of vehicles from the USofA.
(BTW, what is the official name of Canada? I browsed several Wikipedia articles, but could not find that information)
Well you could say that, but my statement is based on that I can’t buy physically from a Canadian dealership, so I could import just as I can a 98 Skyline GT-R R34, its just weather it is worth the trouble when I could get something else. Especially if I am but an enthusiast on a students budget. I don’t think that there would a prohibition on such though, unless it was prohibited for Americans to “grey import” of the Nissan Xtrail back when it was a Canadian exclusive. As for Canada’s name I believe that it is the Dominion of Canada officially seeing as we are a Parliamentary Republic with a Constitutional Monarchy under QEII, but nobody calls it that really. I could be wrong, but that’s what I suspect.
Aussies only know of three chev’s worth looking at, corvette, camaro & silverado the rest only have a chev badge if they are not us built, Opel never had any chance of reaching their goal, too many brands & not enough time to gain a customer service reputation.
What if GM started building chevy in Australia then you would be able to say they come from Korea!
I’m sure you would find some way to complain about that, fact is it has nothing to do with the cars that are being offered in your area all you want is your little lion on the front of it!
But you don’t get to make those choices you gave up that right years ago when you turned over control to GM!
I wasn’t shocked at all. I saw it happening before they begun selling. If you were to got through comments on articles on their launch, you’ll see I saw it coming. Why? Because I know my market and I know GM Holden. The problem in breif was that they were trying to compete with VW and HOLDEN! Holden’s Calais and Caprice are as luxurious as VW and now with VF/WN even better. No way could the Insignia compete with them.
Couple of things to add to the article:
– Holden sells Chevrolet’s Korean built models but isn’t really Chevrolet in/of Australia or the Australian market Chevrolet. It’s GM in Australia. Holden has 4 of their own vehicles with 2 of them having multiple shapes (Sedan, Wagon, Hatch), enough for them to be their own brand. They operate separately from Chevrolet. They just sell GM vehicles that happen to be badged as Chevrolet’s elsewhere.
– Holden didn’t stop sourcing Opel vehicles because Gm wanted to align Holden with Chevrolet’s portfolio. Holden switched from expensive (for Holden) Opel to the cheaper Daewoo. Daewoo then became Chevrolet South Korea. Whilst it looks like Holden is being closely aligned with Chevrolet, all imports with the exception of the Malibu are just Holden sourcing vehicles they need. The Malibu I suspect was GM’s thinking. The Trax would be both Holden and GM.
– Holden had tension with Opel and GM executives because it knew this was a mistake and they know their market. They also didn’t want another competitor in the most competitive market, especially an in-house competitor. My Opinion: Executives in each country GM operates in should be given more control and say in what GM products are sold in their area. Holden doesn’t want the Malibu as much as GM wants to sell it their, Holden wants to focus on selling the Commodore. Holden knows Opel can’t sell here yet, especially the way they tried to (with 3 models etc.).
You talk like a fan, but maybe you actually do work for or at Holden? Please advise!
Haha lol! I wish I worked for Holden but I am just an enthusiast who has grown up with the brand the way kids were raised back in the day. IE, I was raised on “one side of Mt. Panorama”.
Thanks for the clarification! That helps to put your comments in perspective.
Now I have two questions:
a) Did Daewoo ever export cars to Australia under their own Daewoo brand? If yes, did that end when Holden started to offer Holden branded Daewoo/GM Korea products?
b) On a German forum, somebody actually living in Australia claimed that Holden is or was holding the GM shares in GM Korea (former GM Daewoo Autombile and Technology, former Daewoo Motors), or at some time some larger part of that. Do you have any information to share regarding this subject?
My response is awaiting moderation which i think is because I included links in it. In short, Yes Daewoo came here and Holden held GM’s share of Daewoo on their behalf.
Many thanks for the info!
For Germany, I found traces of a Daewoo import company from 1995. All Daewoo imports and were relabeled as Chevrolet from 2004 on. Is that the time, when Holden started to replace the Opel sourced small and compact cars by Daewoo/Chevrolets?
You write about holding the share in the past tense … does that mean that the stock was transferred to General Motors Company, Detroit, or does that mean that you are not sure about the current status?
As to the links … one link goes unnoticed, two or more need moderator approval. They want to keep the users in their own realm, not losing them to other sites where the advertising money goes to other people…
First link: http://www.gminsidenews.com/forums/f67/what-happened-holdens-gm-daewoo-shares-85663/
Second link: http://www.autonews.com/article/20021018/REG/210180715#axzz2b8thWqZs
I’m not sure what has happened to the shares
Thanks for the enlightenment by linking these articles!
Let me summarize the core facts, as far as I can see:
In the second half of 2002, the struggling Motors division of Daewoo was spun of to form “GM Daewoo Auto & Technology Co.”, short GM DAT. GM invested, through Holden, 251 million USD.
Shareholders of this GM DAT were then with:
• 42.1% GM (thru GM Holden)
• 33.0% KDB (Korea Development Bank)
• 14.9% Suzuki Motor Corp (of which GM owned a sizable share)
• 10.0% SAIC (Shanghai Automotive Industry Corp), GM’s partner in “Shanghai GM”
Peter Hanenberger, a former Opel engineer and back then managing director of Holden, was to take a seat as director of GM DAT.
In 2009, GM increased its share in GM DAT by investing 491.2 thousand million Korean Won. The other three shareholdes did not take new shares. This resulted in this distribution:
70.1% General Motors
17.0% KDB (Korean Development Bank)
06.8% Suzuki (GM had already reduced its share in that company)
06.0% SAIC
Back then MD of Holden, Mark Reuss, is quoted as having said in June 2009 that “We hold some of the debt for GM Daewoo”, “around 50%”. The back then Holden PR manager Scott Whiffin, is quoted to have said short time later, at end of October 2009 that “Holden has no representation on the GM-DAT board”, and “Holden does not own the company and owns no shares in GM-DAT”. This “modern myth” as the newspaper author Ken Gratton calls it of the vanishing Holden share might be clarified in the 2011 GM Annual Report, which I will look up for this alter.
Let me recall, that in 2009, GM was still pondering the sale of a majority stake in Opel to a consortium formed by auto parts company Magna and the Russian Sberbank.
Now on the marketing of Daewoo cars in Australia.
In 2002, “Holden said it has set up a separately run distribution company, GM Daewoo Australia” (Quote Autonews) and Hanenberger is quoted as saying “We will retain Daewoo as a separate brand in Australia and New Zealand for the forseeable future” (BTW, Hanenberg retired a year later, in 2003, then aged 60 years to his native Wiesbaden, Germany).
I would like to learn more about the further fate of Daewoo brand in Australia.
All Daewoo exports to Europe were rebranded as Chevrolet beginning in 2004.
What happened with Daewoo exports to Australia and New Zealand between 2004 and the introduction of Daewoo sourced cars as Holden branded ones, like the Holden Cruze, Chevrolet Aveo/Sonic as Holden Barina, the Chevrolet Spark as Holden Barina Spark?
Was the Daewoo Lacetti/Nubira still marketed as Daewoo, or as Chevrolet? What about the Daewoo Matiz? And all the others…
For the record, from the 2011 GM Annual Report:
Noncontrolling Interests
———————————–
In October 2009 we completed our participation in an equity rights offering in GM Korea for $417 million. As a result of the participation in the equity rights offering our ownership interest in GM Korea increased from 50.9% to 70.1%. In March 2011 we completed the acquisition of an additional 6.9% in GM Korea. After completing this transaction we now own 77.0% of the outstanding shares.
[2011 Annual Report, p.171]
Again, just for the record, regarding my wish “to learn more about the further fate of Daewoo brand in Australia”. Now from the Wikipedia-article “Holden”, relating to the smaller Holden cars “below” the Commodore:
———————————-
Holden began to sell the subcompact Suzuki Swift-based Barina in 1985. The Barina was launched concurrently with the Suzuki-sourced Holden Drover, followed by the Scurry later on in 1985.[92] In the previous year, Nissan Pulsar hatchbacks were rebadged as the Holden Astra, as a result of a deal with Nissan.[93] This arrangement ceased in 1989 when Holden entered a new alliance with Toyota, forming a new company: United Australian Automobile Industries (UAAI). UAAI resulted in Holden selling rebadged versions of Toyota’s Corolla and Camry, as the Holden Nova and Apollo respectively, with Toyota re-branding the Commodore as the Lexcen.[94]
[…]
The UAAI badge-engineered cars first introduced in 1989 sold in far fewer numbers than anticipated, but the Holden Commodore, Toyota Camry, and Corolla were all successful when sold under their original nameplates.[106] UAAI was dissolved in 1996, and Holden returned to selling only GM products.[89] This signalled the closure of the Dandenong, Victoria facility, the sole plant for Corolla and Nova production.[107] The Holden Astra and Vectra, both designed by Opel in Germany, replaced the Toyota-sourced Holden Nova and Apollo. This came after the 1994 introduction of the Opel Corsa replacing the already available Suzuki Swift as the source for the Holden Barina.[
[…]
Throughout the 1990s, Opel had also been the source of many Holden models. To increase profitability, Holden looked to the South Korean Daewoo brand for replacements after acquiring a 44.6 percent stake—worth US$251 million—in the company in 2002 as a representative of GM.[127][128] This was increased to 50.9 percent in 2005,[129] but when GM further increased its stake to 70.1 percent around the time of its 2009 Chapter 11 reorganisation, Holden’s interest was relinquished and transferred to another (undisclosed) part of GM.[128][130]
The commencement of the Holden-branded Daewoo models began with the 2005 Holden Barina, which based on the Daewoo Kalos, replaced the Opel Corsa as the source of the Barina.[131] In the same year, the Viva, based on the Daewoo Lacetti, replaced the entry-level Holden Astra Classic, although the new-generation Astra introduced in 2004 continued on.[132] The Captiva crossover SUV came next in 2006.
——————————————————————
FINIS
Holden should import and rebadge the Cascada, Zafira and Combo as they don’t have a convertable, an MPV or a light Van.
The question is, would they really sell well? These cars would be as overpriced as they were offered as an Opel!
Yeah the price would still be an issue but I think if you market the Cascada right, you could get some niche market share. Wearing the familiar holden badge will give it brand awareness and publicity that Opel had to fork out millions of $ for where as a piece of plastic does a lot on its own. The Opel Tigra (holden’s name, don’t know what Opel called it) was sold here and sold but in small numbers. I think Holden would still have fan base wanting a convertible.
The Zafira is a semi-niche market vehicle that given its price would put it in a niche market within a niche market. if it was possible to cut down the price at all, it be an advantage for Holden. The Zafira was also sold here but it was a while ago. There aren’t many MPV options here too so it could work.
The combo was sold here too. It was actually the last Opel to be sold here. Holden had some new ones still sitting on dealer lots for years. It was an outdated version too! As bad as that sounds I think their is an argument for the combo to return. Improvements have been made and given the right marketing strategy, you could generate a few sales.
of course, all 3 would be low volume and almost allways made to order.
Those vehicles have more use to others then just Europeans. Particularly for the Combo and the Zafira, in the Great White North, they would have use as light courier vehicles, as a competition to the Ford Transit. The Zafira could work well as a family vehicle and to support Holden on the Cascada, a convertable Down Under would do wonders.
@Holden4life:
Pls note that today’s Opel Combo is a rebadged Fiat Dobló, produced in Turkey.
But, OK, it seems that it is already marketed as “new Combo” in Singapore. So it could be that Fiat does have nothing against GM exporting it everywhere.
Yes, that’s why I think the three models that could go to Oz are Astra VXR as a HSV, Cascada & Zafira.
And the Adam, and the Meriva.
And with the next all new model generations, replacing the Chevrolet derived vehicles by vehicles derived from the common ground of the “hybrid global brand” Buick, Opel and Vauxhall, with the central responsability being assigned to Rüsselsheim ITEZ.
And it would not matter if they call it the Holden Astra (as Opel and Vauxhall), Holden Verano (Buick USA), or Holden Excelle (Buick China), or some completly new name special to Holden.
HSV did import the Astra VXR as an argeement with Vauxhall when they exported the E-Series to the UK and Holden was selling the Astra. It was called… wait for it… The HSV VXR.
Yes, as I remember it had the V grill too.
I love Aussies but they are a stubborn bunch. Their defiance of Detroit directives have taken on an art form at times. Yes I was keen to see Opel succeed Down Under but that required buy-in from the locals.
Obviously Opel was the brand to compete with European brands such as VW if that was their target. But an alternate differentiator would have been to apply Buick badges to Opels. That would have required bringing in the Lacrosse as well because anyone who could remember a Buick thought of something large.
Another tit for tat alternative would have been to sell a few Commodores as Opels in Europe where they could stretch their legs and give Opel a halo car even if sales end up low. Opel should consider selling a de-contented Cadillac ATS as a revived Senator, with suitably revised styling. If Opel wants to move upmarket in Germany it needs to break out of its mold and do the unexpected.
Rebadging GM cars as Opel isn’t something unexpected! It happened several times in the last decades and always without sucess!
Opel has to build and develop its own cars (in cooperation with Buick or with Buick in mind) and not just take a Caddie and stick the Opel badge on it! Simple rebadging destroys a brand identity. The only message for customers (which are still very critical when it comes to American cars. For Mr. Ritter: I don’t want to say that American cars are not good!!!) would be: Opel can’t develop its own premium cars, it has to offer GM products! So they wouldn’t buy this car and such a measure would damage Opel’s image even more!
How are we stubborn? Because we know our country’s market, the buying trend of our nationality and our culture? Or is it just because many of us also are die-hard Holden fans? We don’t just argue against GM, we argue for a smarter GM/smarter decisions.
I understand where many GM enthusiast who are against holden, are coming from (if they provide valid reasons) BUT they need to understand that we have first hand knowledge and experience with GM Aus.
I get the feeling sometimes that they see Holden like Vauxhall (just a rebadge brand) when it is its own brand with own cars that utilizes the GM manufacturing ecosystem to create a full vehicle line up. When it comes to culture, Holden is to Australia what Chevrolet is to America and that’s why we stubborn Aussies always go on about how the holden brand is stronger here. Also Holden has a lot more power than other markets without their own GM brand. We have a design team and engineering team at GMH. Holden can take a piece of paper and turn it into a car, they did that with the Zeta platform and the VE Commodore.
If we are stubborn because we didn’t buy Opel then how is that stubbornness? We didn’t buy an overpriced car when there were plenty of better and cheaper options. They may have market themselves to be like WV but they had more competition than you think. They even had competition from Holden!
It makes you stubborn cuz you want to make the decisions but your not the ones in charge anymore! So If GM axes holden theres not a dam thing you can do about it!
Knowing that makes your blood boil!
I think all of us want to make the decisions! Alex wants Opel to continue in Australia and to grow the brand knowing that Opel in Australia could very well work. My negativity towards Opel Aus is based on GM’s decisions, not Alex. Those who planned on buying Chevy SS would have made sure a manual option was available and that there were more choices of paint, trim etc. Probably would have given it a better name too!
My blood would boil if Holden was to go and I wouldnt have a say in its future. I probably can’t do anything about it realistically but remember this, people power often prevails. I will at least do something about… Definitely post an angry rant on social media! Lol
We are not stubborn, we just don’t like those who have no idea what Holden and Aussie manufacturing means to GM, trying to give us crap. Unlike you, the GM Authority team acknowledges what Holden means to GM and have merely evaluated the argument of Holden or Chevrolet, both for and against.
Brian, open your mind to the world of Holden & HSV before judging it. How would you feel if GM was to replace Chevrolet with some foreign (and unloved by your fellow countrymen) brand… Understand my stubbornness!!!
“Knowing that makes your blood boil!”
Does not knowing the difference between a GM brand and a GM division make your blood boil, or just confuse you?
Bluntly, Opel has autonomy whereas Buick does not.
Sorry Mate, but my comment of stubborn was meant as a compliment. Dating back to 1929 GM head, Innes Randolph said “Amazing people, these Australians; they won’t do as they are told.” He was talking to Larry Hartnett, who became so indoctrinated by Australians that he set the tone for future Holden managers in defying Detroit. He fought GM tooth and nail to create what was perfect for Australia, the first Holden car.
Oh thanks. Hard to tell what tone people use without hearing them speak.
We are stubborn but we have reason.
Interesting to see on Selena Gomez’s Twitter feed yesterday: #SaveOpelAustralia and #KeepHoldenAustralian. Incidentally, she also tweeted about there being no 4×4 version of the Malibu sedan.
I wonder, would this social network pressure do anything for GM?
“Why didn’t the brand get more time to grow and develop?”
Sure is, It must have been a very abrupt decision as Opel Australia announced only some weeks/months ago introducing the Zafira and Mokka! So perhaps reason was the trouble with Holden and the last straw was the need of very high investements to become profitable in Australia and gain market share what would take years a lot of money for enlarging the dealership and improve the marketing!
Or as Observer7 said, there was the strategic decision that Holden will offer Opel based cars in the future as they did in the past!
I quoted from an article on a website which said “GM said it will investigate the potential of rebadging Opel models as Holdens,”
“will investigate the potential” is not the same as a “strategic decision that Holden will offer Opel based cars in the future”.
I take “investigate” to mean that the 3 vehicles Opel offered here won’t be sold here under Holden because Holden already has those types. The three I suggested they sell here are what I reckon they would be investigating as they are types of vehicles Holden doesn’t have
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Why do people still camp out on this Daewoo thing, The Cruze was developed internationaly… Its time to move on from the whole Daewoo thing…
Well, Daewoo (now under a different name) is the source of nearly all Chevrolets sold in Europe, and the source 40% or all Chevrolet branded cars on this planet, if the many statements to this effect arent wrong.
And I am sure that nearly all the development work on the Cruze was done at GM Koreas (former Daewoo) engineering center in Seoul, surely based on a platform developed internationally under the responsibility of the ITEZ in Rüsselsheim.
And, coming back to my first line, nearly all Chevrolet dealers in Europe are just renamed Daewoo dealers.
So, the presence of Daewoo in Chevrolet is maybe not so visible in North America, but certainly here in Europe, where I happen to put my feet on the ground.
You are so boring with your Daewoos, which has not even existed for years.
Daewoo Motors still exist, they just conduct their business under another name.
You don’t need to highlight your knowledge of business.
It doesn’t matter where these cars are designed or built when a car is to be sold in multiple markets around the world! You people in Europe and Australia label these cars as bad or not worth as much as models in your local area when both cars are made by the same company! Hello don’t you get it, if a GM car comes from Korea or England or usa it’s still a GM car! Why is it so hard to get that threw your think head and small brain?
Do you think the camaro is less of a GM cuz it’s made in Canada? No!
So globally designed spark built in Korea is still a god dam GM car!
So stop worring what car has what badge and where it’s from it’s all the same company!
Sorry Mr. Ritter, but if you think that it doesn’t matter where a car is designed or built you have absolutely no idea of car industry!
So why does GM offer cars like the Agile or Onix only in South America? Why is there a VW Gol in South America? Why is there a Chevrolet Utility only in South Africa? Why is the Toyota lineup in North America completely different to the one in Europe? Why is even the Buick lineup in China different to to the lineup in the states?
There are different expectations in every country which a car maker has to consider if it wants to be successfull!
Beside that people buy cars which are produced in their region because they want to support their local economy or because of some patriotism! There is also something like brand history which isn’t unimportant at all! People buy the brands they are familiar with.
Then explain why so many cars get imported into north America?
If the people in home markets only bought local cars then toy Nissan Hondas would still be a small little car company in Japan!
So no your wrong people don’t just by local products anymore! So when your opel gets replaced in another market another company will come in and take over those sells! What you think people are just going to stop buying cars in your area in the future?
Do keep in mind that most of the imported cars which you refer to are more or less specific to the NA market. The Acura TSX is nothing more then a Euro Accord, the Buick Regal an Opel Insignia and what have you. I will agree with you that people do not buy based on whether it is local built, because nothing is local built because of the global economy, in your Chevy Silverado you will find speakers made in Mexico a stereo made in China etc. However, The German is correct on the bases of models specific to each market based on the demand, why are more pick ups and more variety of pick up trucks sold in north america? Why are more diesels sold in Europe then in North America? It even boils down to, why the design language of an Opel Insignia is different then a Chevy Malibu? The reason is different market demands, its not black and white. I’ll put it to you this way, how about we take a poll comparing a Chevy Chevelle to an Opel GT, shall we? Yes two completely different cars, but for 2 completely different people and different environments as well. I’d be willing to bet most Europeans would take the Opel GT over the Chevelle because it would be for one, easier to park in downtown Berlin or London and the design speaks to Europeans more so then North Americans. While most NA’s would have the Chevelle because of all the relatively straight roads in the New World. Though I agree with you on the bases, of that the car is made by the same people, on the same platform, but different in design, there is more to a car then the chassis. I finish with this, do the Camaro and SS look the same?
Yeah, that’s right Mr. Ritter.
The Camaro is made in Canada and is as much a GM car as any other. However one small oversight … you forgot to mention that the Camaro sits on a platform designed, engineered and developed by GM Holden in Australia.
Here’s a thought for you. One day in the not too distant future China will overtake the USA as the world’s leading superpower. GM will be head-quartered in Shanghai, a sub-division of SAIC. Chevy production in the US will be reduced to a single line in the Tennessee plant producing the C9 Corvette as the sole heritage model. All other GM vehicles will be sourced from Central African countries where abundant raw materials and cheap labour make the region the new Detroit. In the US and Canada Wuling will have replaced Chevy as the value brand, Baojun will replace Buick, and even the sacred Cadillac will have been sacrificed for Qoros, as SAIC continues its pursuit of global auto dominance. And it doesn’t stop there!
COMAC (SAIC’s aviation division) will have long swallowed up Boeing and Airbus. with Ulan Bator in Mongolia being the new Seattle/Toulouse/Hamburg/Bristol!
Never say never …. stranger things have happened.
I’ll file this one right next to a mission to the sun… at night.
Hey, GM is already doing business deals and manufacturing in China. I think Rocket man could be right on the money although I don’t see head office moving from Detroit.
I actually welcomed Rocket’s differing viewpoint, even if it’s a little out there. It’s certainly a refreshing take on ritter’s jingoism of the last few days; something no more believable.
But hey, we’ll see who’s right in 5 or so years when this thread is long forgotten and someone wants a good laugh at us posters for our shortsightedness. It happened to a lot of us back in 2006 when we thought that there was nothing to stop GM; and now I look back at threads from way back when people waxed lyrical about Lutz’s “American BMW” vision of Pontiac.
It’s a crazy world out there.
Doing business in China and being a Chinese firm are entirely different scenarios.
And though GM sells more cars in China than it does in the US on a volume basis — a circumstance that isn’t entirely accurate since sales of its joint venture partners are also recorded on GM’s books — it is not nearly as profitable there as it is in North America.
True but hey who knows what will happen from GM’s new adventures
Concerning a possible (very speculative) move of the GM HQ from USA to China another comparable example: There are thoughts of FIAT to move its headquarter from Italy to the USA because the US sales (Chrysler!) are now more important than the European sales concerning the profit…
http://www.crainsdetroit.com/article/20130617/NEWS01/130619856/tennessee-officials-courting-fiat-chrysler-for-headquarters
So not unrealistic at all!
Interesting thought, it is possible that because of the rapidly growing Chinese market a management buyout of GM is possible. Albeit we may have differing views on when such would happen, or if SAIC will split away and become it’s own entity. On the theory of moving production to Central Africa and South American production, this does follow suit with the movement of the manufacturing, from the developed world, to the developing world. This would help in such regions in terms of building the economy and stabilizing the region. Another point I will make is that if SAIC splits then GM will follow suit to stay competitive. With regards to COMAC, they might even do what GM did with General Dynamics. But I digress and it is true stranger things have happened.
who arrived in Australia to buy yourself OPC models can be pretty happy.
Opel Australia is now a very a rare
OPEL= EUROPA AND THATS IT
In Europe, in other words, not a HOLDEN and similar .
AUSTRALIA can buy yourself VW GOLF OR FORD FOCUS
Someone used google translate! ^
The problem with Opel was they were overpriced here. They tried to position themselves as VW but they are closer to Skoda.
Well, every else, Opel actually does compete with VW on the same level. Quality, comfort, and performance are on par.
You will speak differently when the next gen Holden compact car has been mainly developed in Rüsselsheim instead of Seoul, and when next-gen Holden Caprice appears as, say, Opel Diplomat in Europe and elsewhere, and as Buick Park Avenue not only in China, but in North America as well.
Whaddayathink, eh?
It doesn’t compete well though and VW has a growing reputation here for value for money. If Opels had better interiors (mostly the centre console needs updating, too many buttons) than they could compete much better. The Corsa was an old model too with a crappy outdated interior. They also should have launched with the Astra sedan as well. They had 2 hatchbacks and 1 sedan. Whilst hatchbacks are becoming popular because of their price compared to their sedan versions, i still believe sedans are more favoured at the moment. I think sedan is nicer than a hatch.
The direct button issue has made its way to down under, too?
It is always a compromise to chose between direct access to a function by providing a specific button for that function, vs. having to navigate thru endless and labyrintical menus. A touch sensitive screen as in the latest GM productions is, in my opinion, certainly cheaper to realize since it does not need wiring for each and every direct button, but it can’t be operated blindly, because there is no tactile feedback, and thus is dangerous since it requires the driver to look at the screen instead of the road. Bad choices…
In the (English language) Wikipedia article on “Opel” I find this about the Holden Barinas:
“Holden Barina (1994–2005)
Two of the generations of the Holden Barina were essentially rebadged Opel Corsas. However, the first, the second and the most recent fifth generation were – compared to the rebadged Opel models – cheaper, lower-end Suzuki Cultus’s (1st and 2nd Barina-generation) and Daewoo Kalos. The initial fifth generation (2005–2008) only scored two out of five stars in the ANCAP rating whilst the Opel-based predecessor scored four out of five.”
Well, Opel lost lots of market share to VW in the past decades. This does not say that the Opel cars are worse. Image counts.
As carsharing subscriber, I drive mostly an Opel Astra wagon (Gen H), and have had also driven an Opel Corsa D (which is now replaced by a Ford Fiesta at “my” carsharing station). I never had Opel in the radar for my own car purchases, and was surprised by their quality. I like the Astra wagon!
The more I learn about Holden and GM in Australia, the more I am convinced that the sudden end of Opel’s try to market Opel badged cars is a first step of a reorientation of GM’s brand strategy in Australia (and New Zealand) by integrating Holden in the “hybrid global brand” composed of the “carefully cultivated” brands Buick, Opel, and Vauxhall for “select regions”, as Daniel F. Akerson wrote to the “dear stockholder” in GM’s 2011 Annual Report.
And by the same token making room for the introduction of Chevrolet under its own name in Australia.
Time will tell.
I don’t know what the auto future will look like. Whether, rocket-man’s corporatacracy will rule, or the populism of Ritter man… but I do know this… it will be interesting.
Being in the “bucket list”, age group, I would like to drive a fuel cell auto before its pearly gates time… and I hope it’s a GM fuel cell car.
Have a last look at http://www.opel-australia.com.au/
Here’s an australian motor site writing The Astra badge may stick around in Australia despite Opel’s failure , and at the bottom of the article you can vote YES or NO on “Should Holden offer the Astra after Opel closes down?”
At this moment in time, the tally stands at 85% voting in favor, out of a total of 1336 votes.
I am a customer to two GM Opel vehicles – AH Holden Astra & most recently 2012 Opel Insignia Sportstourer. I agree the most comments regarding the early exit from this market and also raise the question was the business case conducted by Opel HQ cover all possible scenarios in possible market changes i.e. pricing. I believe what brought on Opel to shut shop was more market awareness and brand building than pricing. It takes more than sticking logos on the back of footy jerseys and a few crappy ads on TV to build market awareness. Yes they needed more time to establish a brand (maybe 2-3 years) and hopefully they would of made some descent TV commercials such as the ones Vauxhall do in the UK. It is a real shame because my recent purchase is a fine vehicle.
The dealership where a brought the Insignia from have been helpful and service has been great.
Although Opel Australia business has now cut it loses and is to move on to other markets I think this move to exit may put off current or potential customers purchasing GM products. I wanted to replaced my 2006 Astra for the new model later this year. A car that has been dumped by Holden brought back by Opel and dumped again.
Its put me completely off GM products and will not be purchasing an GM products again.
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Reading the above in 2021 is fun.
Are any of you still alive?
Holden isn’t alive and GM sales and efforts in Australia are negligible (no more sending profit back to Detroit Ritter).
So, thoughts?
Me, I think Peter Hanenberger was the last effective leader Holden had. Detroit just didn’t understand a satellite Co. that wasn’t controlled by the mothership doing well. Total lack of vision, therefore kill what you don’t understand and they did kill Holden.
Obama blinked & shouldn’t have gifted Detroit free money. It didn’t make them better, never looked like it would.
Australia partnering with GM & Ford in the 1940s was a national mistake. Separate Cos. manufacturing under licence and not ownership would have been best.