Along with just about everyone else who watches the industry, we’ve been keeping a close eye on Opel’s progress along the road back to profitability. The Germany-based General Motors brand isn’t quite there yet, but vital signs are stabilizing, thanks largely to GM’s decision to bring in Europe Executive VP Karl-Thomas Neumann from Volkswagen, and Europe CMO Tina Mueller, formerly from the cosmetics industry, of all places.
Fortune published a recent story, looking at how Opel’s bounce back into fiscal health has been largely driven by these two executives. The appointment of GM Europe CMO Tina Mueller in 2013 would turn out to be a fortuitous one; she was the mastermind who decided to bring photographer Karl Lagerfeld onboard to shoot the 2015 promotional calendar for the Opel Corsa, a photographic series which would drum up a lot of attention for the brand as it featured Mr. Lagerfeld’s cat Choupette as the star model.
Simultaneously, the Opel brand was kickstarting an ambitious new marketing campaign in Germany called “Umparken Im Kopf,” which translates approximately to “Repark Your Mind.” Opel’s market share, then on the decline, halted through 2013, and gained value the next year.
2013 also saw the appointment of Karl-Thomas Neumann to the position of GM Europe Executive Vice President. This launched the Opel brand on a path of investing heavily into new product, increasing quality, and drafting a new, more cohesive brand signature in terms of design. Said Ms. Mueller: “In earlier times, when Opel was on top, the name stood for German engineering quality and design that was a little different. We had quality problems [the last few years] and design was boring.”
Now, Opel is poised to make an almost certain comeback, assuming that the crumbling Russian ruble doesn’t hinder the brand’s performance. General Motors forecasts profitability for next year, and with the recent retreat of the Chevrolet brand from Europe, plus Neumann and Mueller at the helm, that’s likely to be just the beginning.
Comments
Opel is now producing higher quality, better cars than VW (like PSA) & the market is reacting. Mueller has done a great job of rebranding Opel which will be key to any future growth.
Much like is the case with Buick, Opel is offering more content and a lower price. Opel must gain market share, and quickly, if the brand hopes to fully utilize factories. More than one plant should have been closed, probably in Poland to avoid political sensitivities–low cost labor means nothing if other factories are operating at 70%.
Opel also needs more product. I’d suggest Enclave as well as any potential Buick flagship. Maybe a reworked Sonic or even Cruze should be paired with Karl for budget buyers.
That GM has let Opel management take the lead and design what its market /buyers want , is really commendable . Not only the designs but the engines and drivetrains are looking to become the benchmark for the industry . I think Opel will indeed become profitable and if there is a fly in the ointment anywhere , it will be the recessive economy that afflicted and still is a problem for more than a few Euro countries who are deeply in debt and have not recovered their balance .
Opel Vauxhall are doing a great job at the moment, but there is still room for improvement. G.M should consider offering the Buick Envision into the European market as an Opel Vauxhall badged Antara replacement, to help plug a hole in their European line-up. It’s exactly the right kind of product for Europe at the moment, and one that G.M already has within it’s existing product portfolio. Overcome the Corporate inertia and react quicker to market demands!
Karl and Astra K this year and in 2016. Opel Antara B (or how it will be called) and Insignia, make sure that sales boost is here.
On internet you can find spy photos of masked Envision as Antara in Switzerland (on some italian web site), so it is for sure that presentation will be in next year or so.
Calendar looks like this:
2015 Karl, Astra K
2016 Insignia B, Antara B (Envision), Meriva concept (maybe)
2017 Meriva, Zafira Tourer concept, Corsa F (some concept, or even some presentation on internet before public debut early next year), Opel’s version of Bolt, Insignia B other body variants.
2018 Zafira Tourer, Corsa F.