mobile-menu-icon
GM Authority

Buick And Opel To Increase Portfolios With More Product Sharing

General Motors’ strategy to more effectively merge Buick and Opel products could mean customers in North America and China will see more European design and engineering in an augmented  range of new models by 2020.

According to a recent report from Reuters, GM is hoping to closely intertwine the two brands products in an attempt to save development costs and time. The company’s two new modular platforms, Global Delta (D2xx) and Global Epsilon (E2xx), will serve as the underpinnings for several upcoming Buick and Opel models. The Global Epsilon platform is being engineered in Warren, Michigan and will replace the platform currently used in the recently refreshed Buick LaCrosse and Regal sedans. Meanwhile, smaller Global Delta family will include the replacement Opel Astra and Buick Verano.

GM’s new modular design approach will use common powertrain and chassis components, but will allow for flexibility in terms of the vehicles design and size. This will allow GM to share components among multiple models, including a broader range of vehicles better suited to individual markets in Europe and China.

GM hopes to position Buick and Opel as mid market luxury vehicles, in between entry level Chevrolet and upscale Cadillac.

“The Buick-Opel guiding principle of similar if not identical vehicles is the right thing to do.” said GM product development director Jim Federico in an interview with Bloomberg. “It makes it extremely clear for brand identity for Chevrolet and Cadillac and these Buick-Opel models fit right in the middle.”

It also echoes the words of Dan Akerson, who visualizes Buick, Opel and Vauxhall as being a type of hybrid global brand.

Sam loves to write and has a passion for auto racing, karting and performance driving of all types.

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. What happened to Buick competes with Lexus, and Cadillac competes with BMW? If Buick is mid-level, shouldn’t the Impala be a Buick? Buick should be China only, and GMC should disappear. Way too much Badge engineering still. A Chevy-Cadillac GM is all that’s needed.

    We were ready to pull the trigger on a Verano and discovered: no power passenger seat (really?) and no memory driver’s seat (really?). Sigh. The more things change …

    Reply
    1. “A Chevy-Cadillac GM is all that’s needed” – Mike D.

      Maybe when one does look only at North America. But GM is a worldwide automobile manufacturer. In China, Shanghai GM sells more Buick than Chevrolet (and, of course, much more Buick than in North America). In Europe, Opel/Vauxhall cars sell about ten-fold of Chevrolet cars. Cadillac is completely insignificant there. In Australia and New Zealand, Holden is by all counts all GM.

      So, GM is opting kinda 3-brand strategy where the third, the middle-of-the-way brand, appears under different names in different markets: Opel, Buick, Vauxhall (possibly also Holden). And will be tuned for different demands and market conditions in Europe, North America, and China. And the rest of the world (remains the question, how the 3-brand-strategy turns out in Australia and surroundings).

      Let me conclude with a quote from a recent GM China press release “General Motors China “Go Off-Road Tour” Concludes • Fleet of SUVs successfully traverses Inner Mongolia grasslands”:

      “The four-day General Motors China “Go Off-Road Tour” concluded today. A fleet of SUVs sold by GM and its joint ventures in China traveled 1,200 kilometers from Beijing through the grasslands of Inner Mongolia.

      The fleet consisted of four popular models: the Buick Encore, Chevrolet Captiva, Cadillac SRX and Opel Antara.”

      Reply
    2. The sales on GMC are amazing and make gm a tone of money buick is also profitable no need to get rid of something that makes them money

      Reply
  2. The middle isn’t a good place to be. I’d convert the entire lineup to hybrid / electric and moves closer to cadilliac in price.

    Reply
  3. But since both Opel and Buick are sold in china how are they going to differentiate more??

    Reply
    1. Those cars of the Opel/Buick range which promise (in the eyes of the marketing people) higher sales are produced locally as Buick, the other are imported as Opel.

      Example: The Insignia/Regal is produced locally as Buick Regal, the kombi is imported as “Opel Insignia Sports Tourer”. Of the Astra/Verano range, the sedan and five-door hatchback are produced locally as Buick Excelle GT and XT, respectively. The coupé-like “Opel Astra GTC” three-door hatchback is not yet listed on the official Opel China website, but one can see it in the image of the start page…

      Reply
    2. Opel sells only 4k to 6k units a year in China! So they don’t make any trouble to Buick…I suggest, most Chinese even don’t know that Opel exists in their country!

      Reply
  4. Buick and Opel will do fine and you can judge where they are going based on todays products other then the Encore.

    We are going to see a transformation to the entire line and changes to both products. They will compete for the most with Lexus models on the mid and low end as that is where they sell the most cars. Same with Acura. There will be a small over lap with Chevy and Cadillac but not as it was when they also tried to cram Olds and Pontiac into the same segment.

    The key to Buick is the sheer volume in China and the fact with the higher transaction price Buick is much like GMC were development cost are spread out over other brands and the profit per unit is much higher. It is much easier to make money on a Buick vs. Chevy,

    Right now I would not get too petty over the electric passenger seats in the Verano as Buick was testing the market here and just wanted to see how well they sold and to hold the price down will they can expand the line up. The Verano is too close to the Regal and it is held down by the Lacrosse. In time these two will move up once Cadillac has completed their move and Buick will fill their slot. This is a action that is not going to happen over night but will happen with a model at a time. You have to look at this big picture.

    We all here have been speaking on this for a long time and we all knew it was coming and it should not be any kind of surprise to anyone here.

    in China I see Opel being very limited there and mostly for the lower priced models or special models they may have that Buick may not share.

    Reply
  5. GMC is GMs second largest brand, and runs higher margins than Chevy serving as a semi luxury truck brand. Ending GMC would be killing the goose that lays golden eggs. Loyal GMC shoppers may not flock to Chevy as you seem to think.
    Nothing has changed in GM planning. Buick will chace Lexus–a company that earns most sales via its lower priced middle cars. Anything high end at Lexus is halo, and am American afterthought.

    Buick requires no US r&d because this is worked out in China and as Opel in Europe. Why would GM stop selling over 180,000 (#4 luxury brand) here in the States?

    I think you are letting personal feelings cloud a good business case for Buick and GMC. Also, Buick prices will rise as Caddy prices rise. There will always be overlap at GM, Sloan’s latter is dead plus they will make a mint off of Impala as a Chevy not to mention the car’s value as a semi-halo demonstrating the brand’s dedication to quality. Chevy has always offered higher end offerings, and this has never harmed other divisions.

    Buick in NA isn’t cool…yet! I predict that things will be very different within a decade given the Monza/Rivera concept cars. Also, Buick will benefit from Caddy hand me downs such as the light weight Alpha platform which will give the Japanese imports a run for thier money. Lexus has seriously revamped the brand and this was about Buick, not Caddy.

    While I worry about Opel/Buick standing in the way of Chevy moving further upmarket like Ford with Titanium, we must remember that Buick is much more of a cash cow than Caddy even here in the US. Personally, I cannot wait for the GNX.

    Reply
    1. “GMC is GMs second largest brand”
      Serious? GMC sells how many cars… 300 – 400K?
      Both Opel and Buick sell respectively more than one million cars a year!

      “Buick requires no US r&d because this is worked out in China and as Opel in Europe”
      This is not completely right…if we believe Reuters, Buick will develop mainly the next Regal/Insignia and of course the LaCrosse and next Enclave in Warren while the cars which are shared with Opel must be redesigned for the local requirements.

      “Buick will benefit from Caddy hand me downs such as the light weight Alpha platform”
      Not very likely! As most Buicks will be nearly identic to the Opel range, Buick will use the new Delta, Epsilon and EMP from PSA for small cars.

      Reply
      1. Opel/Vauxhall and Buick will be managed from Germany in the future, otherwise Mark Adams would not have returned to Opel in Rüsselsheim and Tina Müller will also be responsible for the marketing of Buick. GM wants to centralize the tasks, e.g. global activities, such as marketing or engineering for Chevrolet, Cadillac and GMC will be focused the US and for Opel/Vauxhall and Buick in Germany. The new Epsilon platform will be developed by GM in the US, but the Epsilon based Opel/Vauxhall and Buick vehicles will be developed by Opel in Germany. Chevrolet Cruze is based on a platform developed in Germany, but the car was developed in Korea. The Chinese influence will have a significant impact on the work of the engineers and designers at Opel since China is an important market for these vehicles and Buick.

        Reply
        1. “Opel/Vauxhall and Buick will be managed from Germany in the future, otherwise Mark Adams would not have returned to Opel in Rüsselsheim and Tina Müller will also be responsible for the marketing of Buick”

          As I said so many times before…not ALL cars will be shared! So Buick will have its own -not shared cars- (LaCrosse, Enclave) as Opel (Corsa, Meriva, Zafira, perhaps some station wagons…) will have!
          Beside that it seems not unlikely that Buick will also develop some shared cars “alone” if GM wants to reduce R+D-costs in Europe. But you are right, Buick will be mainly managed from Germany!

          Reply
          1. GM has been clear that Opel/Buick will be sharing the same modular platforms, but not sheet metal. As an example, N A will not be getting Insignia; instead the car will be reskinned and be sold above Lacrosse (Rumored GNX, I assume, on Alpha platform since this is the plan for Insignia.)
            Buick has no need for the smaller bread and butter Opels. This is why the PSA deal works in that it frees GM of the burden of the designing E U only vehicles. As time goes by, I expect autos like Zafira to be sold for all intensive puposes PSAs, while GM gives focus to world car architectures.

            Reply
            1. Steve Marcus on September 22, 2013 at 12:14 pm: “N A will not be getting Insignia” — actually North America already aready has the Insignia, it goes by the name of Buick Regal in North America and China. The initial advertisement in the USA was to praise the Regal for being “bread on the Autobahn”. There are certainly some differences, even in the sheet metal, but not too much. The first batch of about 45’000 Regals for North America had been built in Rüsselsheim, together with the Insignia. I have seen in the factory a big poster showing all the common sheet metal parts of the two.

              “Buick has no need for the smaller bread and butter Opels.” — it is not up to me to make plans for this company GM, but for one, I might say, but if this or that Rüsselsheim developed car comes to the North Americian market does not depend on if “Buick needs” something, but if GM can make a buck on it, and then it will sell it as Buick. See the Encore/Mokka, which, of course, had been developed eyeing to the three main markets, China, Europe, and North America. And the Mokka is now one of the “smaller bread and butter Opels”. A bestseller on both sides of the Atlantic.

              It will be interesting to observe if GM will put the larger Opels and Buicks on a rear-wheel-drive platform as the Alpha, but this might depend also on how far Holden is being integrated in this “hybrid global brand”, enlarging the trio Buick/Opel/Vauxhall trio to a quartet. Well, actually, I do think that Buick has to address different demands and market conditions in China and USA, so far that I use to speak of Buick China on the one hand and Buick USA on the other.

              Thinking about moving the upper end of Buick/Opel/Vauxhall on RWD, raises also the question if the corresponding Chevrolet cars will stay FWD, or if it will be the reverse…

              There will be enough interesting developments to observe in the GM theater.

              Reply
              1. Duh…anyone who visits this site knows the current Insignia is rebadged as Regal.

                The theme of article is future cooperation. Also, I thought I was pretty clear in terms of context when mentioing Alpha platform and GNX; however, if not, let me rephrase and say that NA, according to this weeks news, will not be getting next gen Insignia but that the auto will be be reskinned as possibly GNX.
                Buick will never make a buck in the US with cars like Corsa or Minerva. They are to small in thier current form and are in no way premium. They have yet to even send US Astra OPC.
                As for Holden, they are already mated to Chevy; there is no reason for GM to add them to the brew considering the next Chinese Park Ave will not be Zeta but Alpha like Commodore and the Regal replacement. I could certainly see certain Opels sold as Holden but this has gone on for years.

                Reply
                1. What makes you so sure about all your claims?

                  And solid, quoteable sources?

                  Reply
                2. Yeah, just do a Google News search on Buick for the last nine months and you will receive all the info I present ranging from Alpha future plans to Corsa’s supposed inability to compete as a Buick in N A. as well as GMs desire to outsource E U specific autos to PSA.
                  The Holden remarks are my opinion and based on the brands historic relationship with Chevy; also, I have taken into consideration that the next Commodore will not be all Australian as in the past but instead on Alpha platform to cut costs. While Holden has sold Opel cars, the marques is basically Chevy AU/NZ.
                  I have no desire to do research in order to ‘prove’ or back up info, but you feel free if this interests you. I think RWD Insignia is smart for the Euro market and such a move creates a solid foundation for GNX or whatever they call it. I know GM wants to heavily use Global Epsilon and my bet is that this will serve as basis for LaCrosse and future Impala but, again, that is just an educated bet.

                  Reply
      2. Firstly, my comments were N A specific in regards to GMC and Buick’s role in the US which was pretty clear if you read carefully.
        As it stands now, Buick receives most r&d investment abroad; this is why the brand is currently a cash cow. Even after upcomming changes, a majority of work will be done in Germany with only non European projects being developed in Warren. Furthermore, the next Insignia, and by extension the supposed GNX, are rumored to be places on Alpha, not Global Epsilon. Some have suggested, and I doubt this, that Theta platform might be viewed as an option. I doubt PSA based cars will travel to China or N A. This all came out during the PSA deal in numerous publications.
        As for GMC, clearly I was talking NA. Last year they sold a little over 400,000; not exactly chump change since they sold as basically rebadged with only sheet metal tweeks.
        (I was responding to a US based comment, and thought my remarks were more than clear. Sorry German if something go lost to you in translation)

        Reply
        1. “Firstly, my comments were N A specific in regards to GMC and Buick’s role in the US which was pretty clear if you read carefully.”

          Yor comment wasn’t clear at all as I am not the only one who understood you wrong!

          “Furthermore, the next Insignia, and by extension the supposed GNX, are rumored to be places on Alpha, not Global Epsilon”
          Do you have sources for that? I only ask because I am intersted an not because I doubt it.

          “Sorry German if something go lost to you in translation”
          This is not the first time in this forum that foreign persons (from your point of view) get insulted because of their nationality or origin as far as I understand you right that you mean that in an ironical way!

          Reply
    2. Steve Marcus on September 22, 2013 at 12:15 am: “GMC is GMs second largest brand”

      Within the confines of the USofA, yes. But there is a world beyond the borders of that country, and there is the largest car market of this planet, where Shanghai GM sold 67’793 Buick branded cars in August 2013, which is already more than the 43’202 GMC in the USA. Sure, GM is selling GMC also in the Arab East, but that would not be enough, I guess, to make up this difference. Adding the 24’650 Buick sold in the USA in August, makes a total of 92’443, plus some more in Canada and Mexico.

      There were 42.210 new car registrations of Opel and Vauxhall branded cars in EU+EFTA-Europe; I don’t know how many were sold in Russia, Turkey, and other countries where Opel is on sale.

      Reply
  6. My comments were responding to a NA based question were a poster only felt Caddy and Chevy should be sold here.
    Clearly GM is Global Motors, with the US and Canada only making up a portion of sales.
    This is why I love Buick/Vauxhall/Opel. It provides a semi global middle brand to fight low end Lexus as well as other brands. GM is becoming much more of a full range global company which will reap big rewards.

    Reply
  7. I’m sorry, lost in translation was intended as a hackenyed expression, and not a jab at your English.

    I read about Alpha being used when GM announced that no midsized D segment car would be built in partnership with PSA. I (think) that was in January 2013 but do not have articles. I am quessing a Google search will provide.

    This week a number of US sources stated that the US would not get next gen Insignia but that instead it would be reskinned. This leads me to really believe that Alpha will be used to better distinquish the car from Verano and LaCrosse. I’m guessing thisbis the GNX Motor Trend has spoken about.

    Again German, my goal was not to be rude. I always enjoy your comments.

    Reply
    1. It’s OK…I believe you 😉

      Reply
  8. Steve Marcus on September 22, 2013 at 12:14 pm:
    “GM has been clear that Opel/Buick will be sharing the same modular platforms, but not sheet metal.”

    All GM brands share modular platforms, e.g the Astra/Verano and Chevrolet Cruze share the same Delta II platform. Insignia/Regal, Chevrolet Malibu on the one hand, plus Cadillac XTS, Buick Lacrosse, Chevrolet Impala and the still-born Saab 9-5 (2010) share the same Epsilon II platform, SWB and LWB respectively, but without sharing sheet metal.

    On the other hand, Opel/Vauxhall Insignia and Buick Regal (both China and NA), then Opel/Vauxhall Astra and Buick Verano/Excelle GT & XT, finally Opel Mokka and Buick Encore all share most of their sheet metal.

    All statements coming from GM official sources make clear that the commonality of Opel/Vauxhall with Buick (both China and NA) will increase, not diminish. That means for me as for any unprejudiced observer more common sheet metal, not less.

    Sure, they will create variations for different markets and different regulatory requirements. But the cars produced and marketed by Opel/Vauxhall on the one hand, and Buick China and Buick USA will be more and more look the same. That comes right out of the horses mouth.

    So that GM will internationally operate with three brands: Cadillac and Chevrolet as global brands under one name in all countries, and Buick, Opel and Vauxhall as regional names and slight product variations of the third brand. That is how I understand the official GM utterings. And I prefer those to speculations of the media.

    Regarding Holden I will write a separate contribution.

    Reply
    1. Certainly much is shared, and my ‘same modular platform, different sheet metal’ comment was lifted from 18 September article, among others. From Automotive News,
      GM plans to more closely intertwine Buick and Opel brands General Motors Co. is developing two modular vehicle families to more closely integrate global product development between its Buick and Opel brands.GM hopes to strengthen both brands by more closely aligning their products, a strategy that could shave development costs and time, and increase their respective product offerings in major global markets.The move means Buick customers in the United States and China could see more European design and engineering in an expanded range of new models by 2020. For American and Chinese buyers, that could mean European-bred cars for Buick such as the sporty Opel Adam minicar and the Opel Cascada mid-sized convertible. It also means some future Buick and Opel models of the same size may not look alike, but will share more common parts under different skins.In some of those cases, notably the next-generation Opel Insignia in Europe and the redesigned Buick Regal and LaCrosse in the United States and China, the basic development work will be centered in Warren, Michigan, with final design and engineering done locally by teams in Russelsheim, Germany, and Shanghai.Unlike the effort to transform Chevrolet and Cadillac into stand-alone global brands, GM now intends to cover global markets with a combined Buick/Opel product portfolio, with Opel-branded vehicles built and sold primarily in Europe and similar Buick models built and sold mainly in the United States and China, senior GM executives said in interviews last week at the Frankfurt auto show.Reuters interviewed GM Vice Chairman Steve Girsky, Opel CEO Karl-Thomas Neumann and GM Europe Engineering Vice President Michael Abelson, who described the company’s broad strategy, but declined to comment on the brands’ specific product plans.Flexible architecturesTo implement its evolving global brand strategy, GM is taking a different approach to product development, one that is deeper and more complex than those employed by many of its multinational rivals. Where many large multinational auto companies are building a variety of different models on common structures called platforms or architectures, GM now wants to shift toward basic modules that still use common chassis and powertrain components, but enable much more flexibility in terms of design, size and configurability. The modules can be better tailored to suit individual markets such as China and the United States, GM executives said.The modular approach could help resolve another issue for GM, whose Chevrolet and Cadillac brands are relatively well known around the globe, but whose Opel and Buick brands have more limited appeal. To get more efficient economies of scale, it pays to combine product development for Opel and Buick, where appropriate, GM believes.Broader product portfolios also could help boost both brands in their respective markets.Buick’s U.S. sales through August were up nearly 16 percent, largely on the strength of its Encore and Enclave crossovers, but demand in its U.S. home market lags well behind that in China. In addition, Buick’s sedans, particularly the midsize Regal and LaCrosse, are aging and in need of replacement soon.In Europe, Opel is still struggling to recover from a long investment drought and a devastating sales slump that has caused its market share this year to plunge to less than 7 percent from a high of more than 10 percent a decade ago. More than $18 billion in cumulative losses in Europe have motivated GM to tie up with French automaker PSA/Peugeot-Citroen on joint development of future compact vehicles.Global Delta and EpsilonFacilitating the growing communization between Opel and Buick is the development of two modular vehicle families, known internally as Global Delta and Global Epsilon.Global Delta, a compact family that carries the internal code D2XX, is being engineered mainly by Opel in Russelsheim, with different model variations designed and built in Europe for Opel – including look-alike models for its British sister brand Vauxhall – and in the United States and China for Buick, GM executives said privately.Among the future vehicles in the Global Delta family, according to suppliers familiar with GM’s plans, are the next-generation Opel Astra for Europe, due in late 2015; replacements for the Buick Verano in the U.S. and the Buick Excelle in China, also due in 2015; the all-new Buick Envision crossover for the U.S. and China in 2015 or 2016; a redesigned Opel Antara SUV for Europe in 2016, and a redesigned Opel Cascada in late 2017, including a version for Buick.Global Epsilon, a midsize family that carries the internal code E2XX, is being engineered mainly in Warren, again with different model and brand variations designed and built in Europe, the U.S. and China, GM executives said privately. Among the future vehicles in the Global Epsilon family, according to suppliers familiar with GM’s plans, are replacements for the Buick Regal and LaCrosse for the United States and China in 2016; a redesigned Opel Insignia for 2017, and the next-generation Buick Enclave crossover in 2017.Adam and EveA potential addition to Buick’s future product portfolio is a version of the Opel Adam, a small and quirky-looking hatchback that is aimed at BMW’s Mini Cooper and has been a hit for the Opel brand in Europe since its introduction earlier this year.GM Vice Chairman Steve Girsky said the current version of the Adam was not intended for markets outside Europe and could not easily be re-engineered to meet U.S. safety and emissions regulations.But supplier sources, who asked not to be named because of the sensitive nature of the information, said the next-generation Adam, due in late 2018, is being designed and engineered for sale in the U.S. and possibly in China. It may be joined by a small, sporty two-door sibling known inside Opel as Eve, which also will be sold in the U.S. about the same time.The Adam and Eve will be among the first GM products to be jointly engineered with PSA Peugeot Citroen, the sources said. They are expected to use PSA’s new EMP1 (for Efficient Modular Platform), as will the 2018 replacement for the Opel Corsa.”

      It seems GM wants to move in VWs direction, probably in an effort to avoid more duds like N A Regal while slashing costs even further. Also, this is something the company must do if the goal is to remain a global leader in technology.

      I am posting entire article to end this endless back and forth, and place my comments in a more clear context for you.
      This article makes no mention of next gen Insignia not comming to NA but you can dig around for that on your own.

      Reply
      1. I know that article, and had read it in full. It gives me confidence in my position…

        One has to read it with a caveat, of course, being based on a conversation a Reuters journalist had with leading GM/Opel managers on the IAA. Spoken words. Who knows how much had been lost in translation.

        I find interesting the explicit mention of more modularity in platform development, which makes them more flexible. BTW, an “O” as second letter of the XX would mean “Opel”, I heard a leading development engineer of Opel say at the IAA.

        When you are certain that the Regal/Insignia will find no successor in North America, then I can only say that I have no opinion on that, because of having no information, but a wait and see attitude.

        I also doubt that the whole Epsilon/E2-development has been moved from Rüsselsheim to Warren, but then I also do not know. I have learned to have very low trust in newspaper articles, especially when they deal with Opel and GM, which is one of the reasons why I stick my own nose into those matters.

        So, let’s just wait and see. And expect surprises.

        Reply
        1. I lean toward believing only because Regal has been sandwiched between Verano and LaCrosse, and seen sales fall as a result.
          Take note that I love Regal, dislike Verano and wish the little Delta had never arrived!
          Certainly Regal captures an import niche buyer but the small volume does not justify N A tooling, and import is expensive unless US-EUROPEAN free trade union happens. Even then, Regal eats up sales.
          I also be Reuss wanting a flagship, something that is truly different that the many Epsilon based cars in the GM stable. This car can’t be midsized and must be impressive enough to shield Caddy from Lincoln, a lineup in my view GM must be careful NOT to ignore.
          I just dont see four sedans and Buick needs from every perspective a show stopper. (Personally, I see space four four sedans plus one coupe given Buick’s growth and the overall market.)

          Reply
          1. I for my part do not have any whishes to GM, I am just observing what they are doing and trying to figure out where they are heading. I might point out what I see as possibilities, though.

            Your mention of the cost of tooling should lead you to the conclusion that GM would want to have as much common sheet metal as possible, and only as that much differences as necessary withín this “hybrid global brand”.

            This relates not only to making the forms for the pressing tools (which are quite big and heavy, and will cost a lot to make), but also to the programming of those robots and all the production process. I was fascinated by the gracious ballet of a dozen or so robots which I saw last year in the Rüsselsheim factory, which were locked in a cage and were cooperatively glueing and soldering together Insignia doors, each one doing a specific task and then politely handing over the piece of work to the next, which would take it over, with a nod of the head, one might think, then doing its step, and passing the piece of work on to the next. Such a program can simply be copied to another factory, but the more those components differ, the more reprogramming has to be done.

            I also think, that a simple copy of a pressing tool is cheaper to do than to produce one for a different form.

            Developing a new car includes developing its production process.

            So, if GM wants to reap economies of scale by a deeper integration of the the brands Buick, Opel and Vauxhall (and possibly Holden, too), they will want to have as much as possible common sheet metal, and only as much different als necessary.

            Reply
  9. Steve Marcus on September 23, 2013 at 12:31 pm:
    “The Holden remarks are my opinion and based on the brands historic relationship with Chevy;”
    and “While Holden has sold Opel cars, the marque is basically Chevy AU/NZ.” (typo corrected by me)

    This “historic relationship” dates back to only 2005. And this is basically a relationship with Daewoo, now called GM Korea.

    Holden divides its model range in “small cars” and “large cars”. While the “large cars” are the Holden Commodore and Holden Caprice with their body variants (station wagon, “ute”, coupé), the “small car” range is completely sourced from Korea. Our friend Matt “holden4life” Brokenbrough will of course object that Holden has added significant changes — OK, lets give the Holden development and design centers all their honors, but basically, the Holden “small cars” are sourced from GM Korea.

    Remember: when in 2002, GM saved Daewoo Motors from going bust by taking, together with their Asian partners Suzuki and SAIC, the majority stake of the newly formed GM Daewoo Automobile & Technology (GM DAT, for short) , this share of slightly more than 42% or 46% was held by Holden. The then Holden GM (General Manager) Peter Hanenberger (a former Opel executive and technical director) sat on the board of GM DAT. The Daewoo distributor in Australia was then wholly owned by Holden.

    The situation changed after Hanenberger retired by the end of 2003, and when the sales of Daewoo cars did not reach the numbers which had been projected before. Holden (or GM as such) then decided to end the distribution of Daewoo branded cars in Australia and started — to rebrand Daewoo cars as Holden.

    This happened at the time when Daewoo cars exported to Europe were rebranded as Chevrolet (in Germany by February 2005). But in Europe, the Daewoo-Chevrolets were kept as a separate brand from the GM mainstream brand there, Opel (Vauxhall in the UKoGBaNI), other than in Australia. So two brands in Europe, a single one in Australia.

    Before Holden started to source their “small cars” from Daewoo, they sourced those from Opel. Their Holden Barina was an Opel Corsa, their Holden Astra, well, an Astra. Maybe somewhat modified to meet Australian conditions. Before, Holden sourced small cars from Suzuki, from Toyota, from Isuzu, and I do not know what. Certainly not from Chevrolet.

    Now, what makes me think about Holden’s future as being integrated with Buick, Opel and Vauxhall?

    For one, GM declares that they want to promote Cadillac and Chevrolet als their two global brands, being present in every market — so why not also in Australia?

    Holden is mentioned in this context as one of the “carefully cultivated” regional brands together with GMC, Opel and Vauxhall, and those exclusively Chinese brands Baojun, Wuling and Jiefang.

    About one year ago started the attempt to introduce Opel as a second GM brand in Australia. As we all now, this was ended abruptly a few weeks ago. I understand that this was a decision of the new Opel CEO K.T. Neumann. This was accompanied with the declaration that they wanted to explore the possibility of introducing some Opel cars branded as Holden. So we might see a Holden Adam or Holden Cascada or Holden Zafira…

    But then, why not trying to move Holden “up market” as they try with Buick and Opel/Vauxhall, source the “small cars” from Opel, and contribute with the read-wheel-drive of the Holden development center the future upper range for Buick and Opel/Vauxhall, based on the global Alpha platform? Holden als one of the “gang of four” ‘carefully cultivated’ regional brands sharing as much sheet metal as possible?

    And introduce instead the cars developed and produced by GM Korea under the name they carry in all other parts of the world, i.e. Chevrolet? And all other Chevrolet cars, those from the USofA, too?

    I suspect that K.T. Neumann had this in mind when he decided — with his colleagues in the GM Executive Board — to end the attempt to introduce Opel to Australia.

    Steve Marcus on September 23, 2013 at 12:31 pm:
    “also, I have taken into consideration that the next Commodore will not be all Australian as in the past but instead on Alpha platform to cut costs.”
    BTW, the Holden Commodore and its Zeta platform is based on the Opel Commodore, just by giving it more length in the front to accomodate larger engines. Maybe, if my suspicion turns out to match the reality, those Commodores could come back to Opel, but then on the Alpha platform, and not only to Opel, but to Buick China and Buick NA, too. It suffices to remember that the top-of-the-line car of Buick China, the Park Avenue, is a rebadged Holden Caprice, being built by Shanghai GM from CKD kits shipped from Australia.

    Reply
    1. It seems as if GM has marked Holden as Chevy in all but name; Holden holds 15% market share, and has been effective in areas where companies such as Ford have failed. The question is and must be why mess with a good thing? Moving upmarket would harm volume andn transfering Cruze, Malibu and the truck line up would confuse. I figured that this was why AU never got Chevy.
      If Alpha is the new Zeta, what purpose does Holden design center serve? This becomes more true as large Commodore car sales drop; a segment that should probably be filled by Impala by 2020 when Glibal Epsilon takes over. (Will AU really seek out RWD by then?)
      AU has close ties with China, maybe Buick might be a fit. Possibly Vauxhall should cover Anglosphere minus NA? Maybe Holden could be a super brand like Nissan was in Japan–luxury and volume. Hyn-Kia has done the same.

      I do not know what will happen but I just don’t see Holden messing with a winning formula from a numbers perspective.

      Reply
  10. I agree, and this is why I was shocked by last week’s articles suggesting no next gen Insignia/Regal for North America.
    Only time will tell. Again, the weak NA sales may negate the economies of scale logic unless the car cold be imported.
    China needs for sedans, NA not so much when one considers Buick market share even if contnues to grow at current pace.
    Time will tell. I hope you’re right; Regal is the finest Buick and my personal favorite.

    Reply
  11. Steve Marcus wrote on September 24, 2013 at 8:16 pm:
    “It seems as if GM has marked Holden as Chevy in all but name; Holden holds 15% market share,”

    Yeah, it seems. But Holden’s alignment with Chevrolet began only in 2005. Eight years are a snap within a company history dating back to 1856 (longer than even Opel), with involvment in the automobile industry starting in 1913 with motor cycle side cars and full car bodies in 1919 (Holden’s Motor Body Builders Ltd).

    And this alignment is limited to the Korean (Daewoo) sourced smaller cars, plus the Chevrolet Colorado (of which it would be interesting to know if more Colorados are sold in North America and Australia or in countries of the Third World). The Holden Captiva 5 is a rebadged Opel/Vauxhall Antara.

    As to Holden’s market share, plz allow me to quote the Wikipedia article on Holden: “Holden’s market surge from the 1990s reversed in the 2000s decade. In Australia, Holden’s market share dropped from 27.5 percent in 2000 to 15.2 percent in 2006. From March 2003, Holden no longer held the number one sales position in Australia, losing ground to Toyota.”

    And the partial alignment of Holden with Chevrolet (Korea-sourced Chevy, that is) blocks the expansion of Chevrolet as one of the two really global brands of GM.

    Remember that the announcement of the abrupt end of the effort to introduce Opel as a second GM brand in Australia was coupled with the other announcement of talks between Opel and Holden about introducing some Opel models as Holdens in Australia (one might expect a Holden Adam, Holden Cascada, maybe Holden Meriva and Holden Zafira…).

    So, there might have been the intention of Opelizing Holden again behind stopping the extension of Opel under its own name in Australia, and thus make room for the introduction of Chevrolet under its own name in Australia.

    And if the Holden engineering center with its vast experience of rear-whell-driven large cars can develop the coming larger cars for Buick, Opel and Vauxhall, it will have enough work to do.

    Reply
  12. While Holden has lost share, the brand is still strong. It also sells almost the entire Chevy line up…Malibu, Cruze, Spark. I just don’t see GM doing such a major rebranding in such a tiny market, especially one that would cut Holden volume.
    Chevy, like Holden, has sourced Opels for years. I dare say a few Opels would brighten up Chevy NA and help it compete with Ford: Astra OPC, Corsa, Adam.
    Lastly, GM will downsiE AU engineering as Ford did. The company can do all RWD out of Warren. I am curious where the next Commodore will be designed.

    Reply
  13. Steve Marcus wrote on September 27, 2013 at 10:12 am:
    “While Holden has lost share, the brand is still strong. It also sells almost the entire Chevy line up”
    to be honest: it sells rebranded Daewoo cars. Cheapo Korean imports, revved up a little bit by the Holden engineering center.

    Following your advice that “The company can do all RWD out of Warren” means to shut down the Melbourne engineering and design center, and consequently all local production, the assembly in Elizabeth and the engine production in Fishermen’s Bend. That means that Holden brand will be reduced to relabel imported Korean cars, without any local content. I would expect that then the real Korean products of Hyundai/Kia will be better received than the conceiled ones, and the Holden market share will drop to the whereabouts of 5%. The honest original is always preferred to the fake. (I for my part find the Hyundais by far more attractive than the Daewoo-Chevrolets; one of the reasons might be that the Hyundai engineering center for Europe is located in Rüsselsheim).

    I can’t imagine that the GM management is so foolish as to follow this path to the complete loss of the Australian and New Zealand market.

    As to your remark that “a few Opels would brighten up Chevy NA” — fact is that GM seems to have given up this complete mess of rebranding Opel devoloped cars to each and every brand in the GM arsenal, from Cadillac over Buick and Chevrolet down to Saturn, and has decided that Opel is to develop the cars for the twin Opel/Vauxhall brands and Buick North America and also Buick China, in the latter case with input from PATAC.

    My advice: stop wishful thinking, and start to observe what those guys and girls are actually doing.

    To sum up my diagnosis: downgrading Holden to a company relabeling cheapo Korean imports has been a disaster for that company.

    Reply
  14. Very little wishful thinking on my part; more like me observing global economic and automotive trends as well as GM statements garnered via the media.
    Never once has GM suggested a role for Holden in this ‘Hybrid Brand’. To suggest otherwise is wishful thinking.
    GM has already said that this is the final all AU Commodore–no need for Holden platform with Alpha well recieved. This means that Holden RWD work is already reduced unless they do work for Caddy.
    Also, Ford is pulling out. Do you reallyp think the average buyer cares where the Holden they buy was produced? Will anyone but car geeks even realize? Was Ford’s Falcon being all Aussie prop up and help sales? No, so why would shoppers care about production when considering any of the Holden stable.
    GM will maintain token production. They have already expressed a desire for local production. As for the design center, it’s role will diminish.

    Reply
  15. Sure, there is no official statement about how to carry out GM’s multi-brand strategy in Australia and New Zealand. And you and I look into the world from different standpoints: you obviously from the USA, me from Europe, just 20 minutes driving by car from the Rüsselsheim Opel factory. That produces different perspectives.

    As to your perspective for Holden as closing down all local production and development, reducing Holden to import cheap Korean parts would probably kill the Holden brand. For one, customer really do care where their cars have been produced – against an Korean import faked as an Australian product, they would prefer the real thing, like Hyundai. And on the other hand, producing a small part of those cars with the modified sheet metal for Holden is simply not economical. They could, of course, reduce the Holden image even further, by just sticking a different logo and maker name-plate on the cars. But this would only reinforce the public perception that Holden does not exist anymore and that those Holdens are fakes.

    “Holden RWD work is already reduced unless they do work for Caddy” — all development centers to work for all of the GM conglomerate. But the Holden development center would have a perspective rather developing the RWD cars for GM’s third brand, the “hybrid global brand” composed of the “carefully cultivated” regional brands, just like Holden is.

    GM tried their multi-brand strategy in Australia by introducing Opel as second brand in addition to the local Chevrolet bastard, and pulled back. So I think that they might try a different approach by making room for the introduction of the two GM global brands, Chevrolet and Cadillac, under their own name in Australia, by aligning Holden as one of those “carefully cultivated” regional brands with the league of the other three regional brands.

    Reply
  16. In October, Buick and GMC sold north of 50,000 autos…more than Kia or Mazda and at a premium price. This was done with a small Buick line up, approx. 17,000 cars, and the brand is still damaged. I say these.brands were well worth saving. Add to this Caddy, and GM is the by far the N A luxury sales leader.
    I see Buick as having room to grow to approx 23,000 monthly, mot to bad.

    Reply

Leave a comment

Cancel