One of the many emerging car brands in Australia, Skoda, has some friendly advice for its European rival Opel: don’t expect to “rock up” and start hitting record sales targets.
Skoda has recent experience in establishing an unknown, affordable premium European brand in Australia.
Skoda arrived here under Volkswagen ownership four years ago and, although its brand awareness has improved from a low base — helped by sponsorship of the Tour Down Under (pictured) and the AFL's GWS footy team — it is still on the periphery of most customers’ minds.
The global boss of Opel told Australian reporters at the Frankfurt motor show last week that General Motors’ European brand planned to sell 15,000 cars in 2015 (just three years after being established in late 2012). Two days later, senior executives sought to clarify that number as a “stretch target”.
When asked by motoring.com.au if Opel’s target of 15,000 cars in the third year in Australia was ambitious, the head of Skoda Australia, Matthew Wiesner said: “Yes. If it’s that easy I’d do the same. Unless the product’s positioned sensationally well and [Opel’s] got the four [core] product segments covered, he’ll be a bloody genius [to sell 15,000 cars by 2015]. He’s not selling Holdens, he’s selling Opels.”
When Opel cars were sold in Australia wearing General Motors Holden badges, Astra sales hit a peak of 33,000 in 2005 – a figure which would put it among the top five selling cars today.
But in the past five years the number of small-car rivals has increased sharply – including the locally-made Holden Cruze sedan and hatch made possible thanks to Australian taxpayer funding.
“Awareness is everything,” said Wiesner, referring to sales of Skoda cars locally compared to Volkswagens. Both brands share most of their technology and underpinnings and yet most customers are unaware of the link. Volkswagen has been in Australia since the early 1950s and is almost as old as Holden.
“You need to be relevant before people take any notice of who you are,” he said. “Since we rolled out, our aided awareness through Roy Morgan [research] has doubled … into the 60s [per cent range]. That’s people saying ‘I’ve heard of Skoda, I’ve got no idea what they do, but I’ve heard of them’.”
“It’s difficult [to increase brand awareness], especially when you only have a limited model range.”
Despite the words of warning, Wiesner says he is not focused on Opel as a rival when it sets up shop in Australia this time next year.
“I know how tough it is when you rock up and start from scratch [but] we’ve got to focus on what we’re doing,” he said.
“It’s a big enough market here. What you’re seeing is the start of where we will be in three, four and five years’ time. The success of Skoda will be built around the brand itself, and it must have its own identity and brand value for it to be successful in the long term, which makes it harder at the start.”
Wiesner said if it were not for the Global Financial Crisis in 2008, Skoda sales would be higher by now – but still nowhere near Opel’s target of 15,000 after three years.
“If we didn’t have the GFC and if the currency didn’t go AWOL, life would have been very different,” he said.
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