GM Keeps Opel -- Part 2: Rescue North America Posted 2009/11/18 @ 4:30 AM AM
The new GM has mentioned how it slimmed its brands down to look more like the Toyota family. This is fine except that Toyota has its own set of problems. Its products symbolize more about reliability than fun, and it has turned its profile into people who are more likely to apply to AARP than apply to college.
GM is so focused on beating Japan that it’s missing out on a key consumer market: Europe. Europe is made up of many very distinct nations who get along harmoniously (at least in the civilized parts) because they all recognize the individual country’s passion. This is reflected in the way they motor, too. A European car has to satisfy the tastes of the precise German, flamboyant Italian, and everyone in between.
So to the U.S. consumer, a European car means a sharp car with style. Cadillac is working on the higher end of the spectrum by taking aim at the larger cars offered by Mercedes and BMW, but what about the lower end? The place where the new largest automaker in the world makes its bread and butter; the Volkswagen market.
Volkswagen’s North American operations bounced back in the 90s not only because it was selling nostalgia with New Beetles, but also because it was embedding in the public that VW offered German engineering on a budget. Opel’s the only other company that can make that claim, and since GM keeps it out of North America, Volkswagen has the whole lucrative cheap German car market to itself over here.
GM has tried sending Opels to compete in North America before with only moderate success at best. The Pontiac LeMans (5th generation), Cadillac Catera, and most of the recent Saturn lineup were never popular enough for repeat performances. But the common element in all of this was the American name.
GM already covers the entire market of people willing to buy domestic cars. But there still is a large segment of consumers that don’t trust American cars. They want it imported no matter what. So GM should at least have one brand that’s not an import fighter, but actually an import itself. Opel could be established in North America with GM touting its German roots instead of trying to hide them it could be a real asset. Opel currently has a strong product lineup, and a proud German name.
In an ideal situation Opel could come back to North America under its own name and dealer network. GM could even buy up the Saturn dealer network for cheap from Old GM now that the Penske deal went bust. But as I mentioned in the very beginning, this is just a pipe dream. There isn’t enough funding to reestablish Opel in North America, nor is the market currently healthy enough to sustain the brand at profitable levels.
Plus there are some simple arguments against an Opel return:
Hasn’t GM tried already to have a Euro-beater with Pontiac? No matter how good the Pontiacs became (and the ones from Australia were amazing) it was still marketed as an American fighting imports. Opel in the U.S. should emphasize its German heritage.
Wasn’t Saturn’s final lineup mostly Opels? Yes, but Saturn did not exploit the German heritage of its final lineup (partially because they were Opel designs assembled outside of Germany.) Plus Saturn’s initial image of cute, All-American cars only muddled the image of its final lineup.
Didn’t Buick already try to sell Opel cars in the U.S.? Yes, but that ended over a quarter century ago when Europe represented the world of second-class small cars. Opel’s lineup in the U.S. back then offered what looked like shrunken versions of sedans, wagons, coupes, and even the mini-Corvette Opel GT. Now Europe is the home of driving passion.
Wasn’t Saab a European company that GM let on its own but failed? Saab embraced its quirks to become the anti-BMW brand. Opel instead has the ability to be marketed as the BMW on a budget.
There is plenty more to discuss, but the simple fact is that good business practices require a company to use all their assets to their fullest. There is a sizable market of Americans who go crazy for anything Germen – everything from a Mercedes SLR to Heidi Klum. So if General Motors is holding to a large German card, it’s time to explore how to use it.
GM already covers the entire market of people willing to buy domestic cars. But there still is a large segment of consumers that don’t trust American cars. They want it imported no matter what. So GM should at least have one brand that’s not an import fighter, but actually an import itself. Opel could be established in North America with GM touting its German roots instead of trying to hide them it could be a real asset. Opel currently has a strong product lineup, and a proud German name. 
