GM to position Opel (Vauxhall) upmarket

GM to position Opel (Vauxhall) upmarket


December 31st, 1969 GM's plans to invest $14 billion in Opel by the end of 2012 were announced just last week, as well as their plans to introduce 20 new models for Opel in this time period. But some more details have come out about the investment, most notably the General's plans to market Opel as a more 'upmarket' brand and to differentiate it from its entry-level Chevrolet brand. GM plans to reposition the Opel brand in Europe by emphasizing Opel's design and engineering prowess based on its German heritage, but marketing isn't the only strategy being undertaken to achieve this. Product development and pricing will also be used to affirm Opel's slightly more upmarket status, and the shift in brand direction will raise the prices for Opel cars - not to the level of other German marques, such as Mercedes and BMW - but by around 1-3%. New models being developed for Opel also include several hybrid options and the massive investment from GM into the German brand should see its dwindling sales pick up eventually. GM has assured it is not trying to reinvent the brand, but rather re-emphasize certain aspects of the manufacturer's heritage and capabilities, according to Automotive News. Opel will also release two electric vehicles using GM's E-Flex architecture, which should also help sales pick up from their current decline. 2009 Opel Insignia hatchback spy shots Opel Insignia Coupe and Estate renderings 2009 Opel Insignia sedan2009 Opel InsigniaOpel Insignia hatchback spy shotsOpel Insignia Coupe preview
GM to position Opel (Vauxhall) upmarket

GM to position Opel (Vauxhall) upmarket

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GM's plans to invest $14 billion in Opel by the end of 2012 were announced just last week, as well as their plans to introduce 20 new models for Opel in this time period. But some more details have come out about the investment, most notably the General's plans to market Opel as a more 'upmarket' brand and to differentiate it from its entry-level Chevrolet brand.

GM plans to reposition the Opel brand in Europe by emphasizing Opel's design and engineering prowess based on its German heritage, but marketing isn't the only strategy being undertaken to achieve this. Product development and pricing will also be used to affirm Opel's slightly more upmarket status, and the shift in brand direction will raise the prices for Opel cars - not to the level of other German marques, such as Mercedes and BMW - but by around 1-3%.

New models being developed for Opel also include several hybrid options and the massive investment from GM into the German brand should see its dwindling sales pick up eventually. GM has assured it is not trying to reinvent the brand, but rather re-emphasize certain aspects of the manufacturer's heritage and capabilities, according to Automotive News.

Opel will also release two electric vehicles using GM's E-Flex architecture, which should also help sales pick up from their current decline.

2009 Opel Insignia hatchback spy shots

Opel Insignia Coupe and Estate renderings

2009 Opel Insignia sedan

Comments (6 total)

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  1. which only means brighter days ahead for saturn in turn.

    I like the idea that GM is trying to cover all their bases in europe. opel for the mid market, chev in the lower market, and caddy in the upper market.

  2. As I'm sure Hector would point out, mass-market luxury is very hard to do (unless you're BMW and your 3-series outsells Ford's Mondeo in the UK). Since profit margins are much higher for luxury cars, it makes sense for brands to try to move upmarket. Even Hyundai is getting in on this act!
    The thing that kills me is the General already has so many luxury brands it doesn't know what to do with them all (Buick?!). They really lack a cohesive brand strategy and it keeps coming back to bite them. Here are the chances they missed:
    1, Launching Opel in China instead of Buick
    2, Re-launching the new Europeanized Saturn as Opel in the US.
    They have yet another chance now:
    3, Phase out Vauxhall in the UK and other markets; replace it with Opel. Then follow suit in the US. Finally, launch Opel in China as a luxury brand.
    Ta-da! Cohesive global branding! Amazing!

  3. This may work in Europe for Opel - as it does tend to be regarded to be slightly upper market already. But with Vauxhall in the UK it reminds me what BMW tried to do to Rover (higher prices to move upmarket) and history has shown what happened there!

    I think Vauxhall is a brand too well known in the UK to drop - you could probably get away with it for the new insignia but not on the bread and butter stuff - Corsa, Astra, Zafira etc - And I wouldnt rcomend having both Vauxhall and Opel again - been there -didnt work!!

    Regarding segments I suspect Chris is right in that Chev is the lower end, Vaux/Opel mid but top end in europe ould have to be Saab (if they give them some new metal!) . When have you ever seen a caddy in the UK? - they are still seen as terrible US stuff or at the very best a mildly made over and ugly version of a Saab. Ie Caddy has a long way to go.

    Being in Oz at the moment I think its been a mistake for Holden to badge chev/deo as Holden as they have probably devalued the Holden badge - but thats another issue

  4. Being in Oz at the moment I think its been a mistake for Holden to badge chev/deo as Holden as they have probably devalued the Holden badge - but thats another issue

    i know...im here also and its a farce...perfectly good corsa and they rebadge a daewoo and call it a Barina ??
    brilliant if slightly ore expensive Astra and they get another daewoo and call it a Viva ?
    and lastly a 10 year old daewoo designed large sedan and they call it the epica ?
    and then there is the Captiva

    hahaha Holden have shot themseoves in the foot...if Ford get back brand confidence they have the products to cream all over holden...lucklily i love my toyotas...haha

    Ford / Holden

    new Falcon / commodore
    focus / viva
    fiesta / barina
    territory / Captiva

  5. forgot on more.

    mondeo / epica

  6. Mind Ive seen loads and loads of Captivas in OZ - very popular. Have not driven one but the MAxx (also badged as a Vauxhall/Opel in Europe!!) looks ok and is quite nice inside.

    I was not impressed when I drove the Territory - felt like a large old barge! - but they are popular here. Are they sold anywhere else??

    I laughed at your Mondeo/epica - like chalk and cheese!!

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