Opel boss outlines Australian plans

The new boss of Opel Australia, Bill Mott, has outlined a rough sketch of the company's start-up plans next year but is yet to confirm the dealer network and price positioning. 

A range of just three vehicles will lead the Opel charge – the Corsa city car, the Astra small hatch and wagon, and the Insignia mid-size sedan – making their debut at the Sydney motor show next October ahead of a showroom rollout in November.

Opel will initially have nationwide coverage with only about two-dozen dealers, focusing on capital cities and major metropolitan areas before expanding the dealer network as the model range grows.

Mott said that Opel's retail outlets will not necessarily be attached to Holden dealers, even though the two companies will share headquarters and backroom operations. He said Opel had already received "verbal expressions of interest" from dealers but had not started the tender process.

As noted above, the new Opel Oz boss would not be drawn on pricing. However, our indications are that the vehicles likely to slot between premium Japanese brand Mazda
and volume German brand Volkswagen on like-for-like models.

In Europe, Opel is poised to introduce 30 new or updated models in the next three years, after an investment of 11 billion Euros, but Mott said he is yet to confirm how many of those new vehicles are coming to Australia.

What's likely to follow in 2013 are hot hatch OPC (Opel Performance Centre) versions of the Corsa and Astra, and either the Meriva or Zafira mini peoplemovers.

What's confirmed as not coming is the Opel version of the Holden Captiva 5 SUV and the Opel version of the Holden Volt plug-in hybrid, sold as Ampera in Europe. Mott said the Ampera and Volt were too similar in appearance and technology and so a decision was made to not sell them side-by-side in Australia – even though both models will compete against each other in Europe.

Opel may eventually introduce the next generation plug-in hybrid Ampera as GM creates greater design differentiation between it and the next generation Volt.

Meantime the lack of an SUV will leave a rather large gap in Opel's line-up in Australia, but that may soon be filled with two compact SUVs the maker is developing based on the Corsa and Astra underpinnings, due in 2014.

Speaking with Australian journalists at the Frankfurt motor show, Mott said Opel planned to grow slowly as the company recognised Australia is one of the most competitive new-car markets in the world. At last count there were around 50 car brands on sale in Australia, about a dozen more than in North America and Europe, which sell between 12 million and 20 million cars each year. Australia sells 1 million cars annually.

"It is going to be a challenge but it's also an opportunity," he said.

"It's kind of a blank slate, nobody has any idea what Opel is... We did a few product clinics recently with the three models [we're introducing]. The results were extremely positive, so we know we've got the right product."

When asked why Opel would succeed where a better-known French brand Renault had failed over the past 10 years despite factory support, Mott said: "The research we did indicated that German-made products and German engineering has massive appeal around the world and also in Australia.

"If we do the right job of introducing Opel as a truly accessible German brand … I think we'll land on fertile soil and [it will] differentiate us from [Renault and others].

"We've seen the growth of the European brands in Australia. Some of them have grown 10 times market growth over the last 10 years. There's a tremendous amount of people that want European cars and the European driving experience.

"When we compare the products that we will bring to market … There's really been a quantum [sic] leap. That will allow us to … compete in a segment where currently GM isn't present in Australia, that we've simply left others to lunch on."

Mott insisted there was no animosity between Opel and Holden, who will be competing for the same customers on some models.

"Holden absolutely recognises that this is a plus business for General Motors in Australia," he said.

"We will be a separate entity within the organisation and I will report back to Germany. But we will work obviously very closely to safeguard whatever we're doing is having the best interest of General Motors' performance in Australia."

When asked if exports to countries such as Australia were crucial to Opel's success and sustainability in Germany (just as exports are crucial to Holden's survival in Australia), Mott said:

"I wouldn't say … Opel has to export to survive. We're one of the few brands that are growing in Europe today. With the product offensive that was announced – 30 new products by 2014, an investment of 11 billion Euros – I do think it sends an important signal."

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