Update: GM rules out new Opel flagship

Updated: General Motors’ global product chief Bob Lutz has ruled out developing a new flagship model for the Opel brand, claiming that there’s little chance a model positioned above the new Insignia sedan would be able to compete with Germany’s well-established premium brands. Speaking with Auto Motor und Sport, Lutz confirmed that plans for a new flagship model have been put on ice and that such a model from Opel would have little chance for success.

The introduction of a new flagship was a key element in GM’s plans to reposition the Opel brand in the premium segment and allow Chevrolet to fill the more affordable segment. Opel boss Hans Demant revealed that a new flagship model managed to make it to the concept stage but reaffirmed Lutz’s comments that the market doesn’t need another Opel model positioned above the Insignia.

Original: Executives at Opel are keen to launch a new model in the premium segment and have been given the blessings of GM’s European boss Carl Peter Forster as well as Opel Chief Hans Demant. Despite concerns of tougher emissions standards and the failed attempt of VW to penetrate the segment with the Phaeton, Opel is seriously looking at launching a new model positioned above the current Vectra range topper. News of an Opel flagship isn't exactly new. the carmaker first hinted about such a model back in 2000 when it released the imposing Insignia concept.

To keep development costs low, execs are considering using an existing GM model as a base and simply designing a unique variant for the Opel brand. During an interview with AutomobilWoche, Hans Demant admitted the market for such cars is small but explained that the car doesn’t have to be built by Opel. Instead, Opel could cooperate with another GM brand that already has such a car and thus avoid any significant financial risk.

Demant wasn’t willing to give any details about a possible partner but hinted at Cadillac’s CTS as a likely donor, as the quality of the new Caddy is already on par with many of its European rivals. Another avenue would be to call on engineers at Holden to develop the new car. Such a move isn’t without precedent. Holden’s VE Commodore is already scheduled to hit U.S. shores as the Pontiac G8 and its Caprice luxury barge is headed for China as a Buick.