Opel To Retreat From Chinese Market
Sponsored Links
Earlier today GM Authority reported that General Motors is investing €245,000,000 (almost $337 million) in Opel’s Ruesselsheim, Germany plant. But with that information comes news that Opel will be leaving the Chinese market come January 2015.
According to General Motors Media, there were 22 Opel dealers in China sold a total of 4,365 vehicles for the 2013 calendar year. In comparison, Buick has 650 dealers and sold about 810,000 vehicles in China during the same period, including several that were co-developed with Opel.
Opel CEO Dr. Karl-Thomas Neumann said, “This is a long overdue decision. It would have cost hundreds of millions of euros to raise awareness of the Opel brand and to expand the distribution network. Buick, however, is one of the market leaders in China and we plan to intensify our future collaboration, with several projects currently under examination.”
Globally, Buick was General Motors’ third largest passenger car brand, with 1.032 million vehicles sold worldwide. Only Chevrolet (4.984 million units) and Opel/Vauxhall (1.064 million units) have sold more vehicles.
- Sweepstakes Of The Month: Win a 2022 Corvette C8.R IMSA GTLM Championship Edition. Details here.
Sponsored Links
For GM as corporation, there are only two differences in importing the Opel cars into China or building them locally branded as Buick:
• imported cars are much more expensive due to the protection of China’s industry by heavy import tariffs;
• for local production, any foreign automaker has to for a joint venture with a national company.
Being an ex Buick Marketing person I have no problem with Buick being synonymous with Opel in the world market. As long as each division can be tuned to the local markets. i.e. Enclave available in US as a Buick but not in Europe as an Opel.
This seems to make sense, as Observer7 states the huge import duty levy makes anything not made in China ( and in conjunction with a domestic Chinese company) simply uncompetitive. Chevrolet in Europe, Opel in Australia & China means that’s 3 lost causes GM have saved themselves. It just remains to be seen what they are going to import to Oz with a Holden badge on it.
http://www.holden.com.au/
The website above will show what Holden will be selling. There will be a few revised platforms but basically the same line up. Oh the Ute may not be there but most of the others will.