Opel to close down in Australia

In an official statement Opel Australia said it could not viably follow its competitors recent trend for cutting prices, and would have needed to "significantly reposition the price of its core volume models” to survive.

The news comes in the lead-up to the planned launch of the Zafira people-mover next week and Mokka compact SUV in coming months. Opel also cited the ongoing resources needed to keep promoting the brand in Australia – one of the most competitive markets in the world, with 66 vehicle brands competing for the consumer wallet. 

In addition to advertising, Opel has also entered into some high profile marketing and public relations over the past 12 months, including sponsorship of the Sydney Roosters rugby leage team, announced in June 2012. The sponsorship was halted last week by Opel. The brand also sponsored Melbourne Football Club in the AFL.

Opel and Holden will now start working on analysis of "the potential for future Holden-badged niche product, in order to ascertain if opportunities for individual carlines exist" the statement said

Customers were promised that Opel would meet all obligations in terms of warranty. The statement said Opel was "working closely with employees, dealers and suppliers to conduct this closure process in an orderly and responsible manner. As always, customers are of the highest priority, and Opel Australia will remain in close contact with them, to ensure all on-going obligations to these customers are met."

Opel launched here in August 2012 with the Astra hatchback, Insignia mid-sized sedan and wagon and the Corsa light car. The brand believed at the time it could achieve yearly sales of 15,000 by 2015, and have developed a network of 20 dealerships around the country.

However last year -- its first and partial year of operations -- resulted in 541 sales. The brand has moved  989 vehicles so far this year to the end of June. Top sellers were the Astra, which accounted for 365 last year and 677 this year, followed by the Insignia with 111 last year and 198 this year. The Opel Corsa has sold only 65 last year and 114 this year.

The Astra nameplate was a familiar one to Australia, having sold here as a Holden for many years. Other Opels also badged as Holdens include Barina, Calibra, Vectra, Zafira and Tigra. In addition, the original  VB Commodore, Camira and Gemini models were all heavily based on Opel designs.

Any concerned customers should contact the Opel Customer Assistance Centre on 1800 993 677 with any questions.