Opel to improve value positioning

The GM-owned carmaker – which will launch here within months – says it needs to reverse its previous strategy of trying to move upmarket.

CEO Karl-Friedrich Stracke told an Automotive News Congress yesterday there would be price cuts on the brand’s vehicles, largely in response to the European financial crisis. "We need to regain our traditional customer base," Stracke said. "We moved Opel up too quickly. Going forward there will be adjustments to make our cars more affordable."

“We will make a significant investment in Opel's product portfolio,” he said. “I noticed with interest that some of our key competitors have announced plans to cut product investment spending," he said.

Opel will launch here with three models – Corsa, Astra and Insignia – but they will be joined by others as part of the carmaker’s plan to roll out 23 new or revised vehicles and 13 new drivetrains in the next four years in various markets around the world.

Speaking from a European perspective, Stracke said Opel's price-led strategy would not be a threat to stablemate Chevrolet. "Customers don't see the brands as competitors," he said. However with Opel facing off in Australia against fellow GM brand Holden, particularly in the small car market with Astra and Corsa, we’ll be watching with interest to see how the price points compare.

Opel Australia’s head of marketing and public relations Michelle Lang says that while the local arm will not comment on international operations, they don't see a rivalry here with Holden. "We do not expect to "face off" against Holden. We will operate in completely unique markets, and appeal to very distinct buyer types," she says.