Monday, 5 August 2013

OPEL SUDDENLY QUITS AUSTRALIA

Bad news coming from Down Under (not related to the fact that their cricket team is being hammered at the Ashes) is that General Motors is pulling the Opel brand out of the country. And it’s only been 11 months since it arrived. Up until September 2012, GM had Holden holding things down, under. Then it decided to introduce the premium Opel into that market, with an annual sales target of 15 000.


But alas, in 2012 the company only managed to sell 541 vehicles and was on track to deliver over 1 000 units at the end of this year. That’s not enough to make a strong business case and thus GM it seems, really had no choice but to pull Opel out of the Australian market. As it is in South Africa, the Opel brand seems to be priced higher than its equivalent rivals and that appears to have been the main problem.


Back at home, Opel is not making big splashes either. But whether this could lead to a pull-out as well is yet unknown. To be fair though, Opel has been in Mzansi for over 25 years as opposed to the 11-month Australian experiment.

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