Vauxhall to "move upmarket"

jase1

http://www.reuters.com/article/2013/07/05/us-autos-gm-opel-idUSBRE9640PK20130705

Doesn't really work that though, does it?

Europe's only market where Opel do well is here in the UK (they don't even feature in the top ten in several countries). And here they aren't "German Opels" -- they're "British Vauxhalls".

So how exactly are they going to persuade the British public that their workaday "British" Vauxhall is, all of a sudden, a premium German product?

This could backfire on GM horribly. That and the talks they're in apparently to buy up Peugeot -- I wouldn't go within 100 miles of a load of unionised French brokenness like that!

Strider590

jase1 wrote: »

http://www.reuters.com/article/2013/07/05/us-autos-gm-opel-idUSBRE9640PK20130705

Doesn't really work that though, does it?

Europe's only market where Opel do well is here in the UK (they don't even feature in the top ten in several countries). And here they aren't "German Opels" -- they're "British Vauxhalls".

So how exactly are they going to persuade the British public that their workaday "British" Vauxhall is, all of a sudden, a premium German product?

This could backfire on GM horribly. That and the talks they're in apparently to buy up Peugeot -- I wouldn't go within 100 miles of a load of unionised French brokenness like that!

Sounds like disaster waiting to happen........

But as for VX/Opel not being top ten in several countries, other countries are not like us, they see cars as transport, we see them as status symbols, they tend to stick loyally to home grown makes, especially in France, Italy, Sweden and of course Germany.

colino

This doesn't mean so much putting Astras and Insignias on a higher shelf, just promoting more of the "Chevrolet" brand that GM have chosen, not to represent growling V8s, but their cheap and nasty models in Europe: Those models spawned from GM buying Koreas horrible Daewoo -remember them?

sniperpenguin

Strider590 wrote: »

Sounds like disaster waiting to happen........

But as for VX/Opel not being top ten in several countries, other countries are not like us, they see cars as transport, we see them as status symbols, they tend to stick loyally to home grown makes, especially in France, Italy, Sweden and of course Germany.

Seeing as we dont have a british car maker (MG doesnt count ) then we dont have that option

This is a dangerous move for Vauxhall.... they are starting to come out with some better quality cars (Astra) and people are forgetting the Vectra, old Corsa etc. I also fail to see what pug/citroen can offer them in terms of tech, unless GM are struggling to produce European spec engines at a reasonable cost.

Trouble is, the "upmarket" space is becoming very crowded at the moment.... VAG's multi-platform program has resulted in SEAT and SKODA jumping ahead light-years in quality to approach their VW and Audi brethren. (Look at the new Leon / Octavia alongside an equivalent Golf).

Vauxhalls normal opponents have been Renault / Ford / Pug, I think with the seemingly less fashionable marques catching up in quality, they may be struggling for ideas.

spacey2012

Sorting out the EML system would be a good start.
Fart in the car and the EML comes on.
I have even seen the lamp wired to a switch to turn it off.

InsideInsurance

Well they are aiming at VW level not BMW and so it isn't a MASSIVE stretch target. Chevy then slot in below as the budget brand.

Its doesn't sound like they are exactly looking to suddenly change their market segment but simply adjust two brands to prevent too much cannibalisation. It sounds from the article that they are confident that their new products meet the demands of a slightly higher class, you then either retire or update the older products to ensure your portfolio meets your target, update marketing and services/processes etc to match.

Changing brand perceptions doesn't happen over night but can happen surprising quickly at times. Obviously having relatively low brand awareness prior to the change helps. Starbucks is a good example of brand that found itself floundering for a while and since reinvented itself in fairly short timescales.

jase1

My objection to this was more based on the apparent way in which they seem to be wanting to go about this.

Vauxhall will never be seen as a "German" brand. Won't happen, no matter how hard they try. So the marketing guys will not be able to leverage the Germanness of the cars in this country without ditching the Vauxhall name.

InsideInsurance

jase1 wrote: »

Vauxhall will never be seen as a "German" brand. Won't happen, no matter how hard they try. So the marketing guys will not be able to leverage the Germanness of the cars in this country without ditching the Vauxhall name.

The "German" bit was a comment from their ex CEO in Jan 2010. There is nothing to say they are repeating that tactic now.You also would need to take into account that the article is European focused and Opel is a german brand, Vauxhall is hardly mentioned at all and again there is no automatic conclusion that Vauxhall will follow Opel's stance

vikingaero

Every auto maker wants to go premium. There is a widespread profitability issue in the general car market especially with fixed scale factories producing more than we can consume.

Problem is public perception. Is a Citroen DS3/4 really better than a C3/C4?

GolfBravo

colino wrote: »

This doesn't mean so much putting Astras and Insignias on a higher shelf, just promoting more of the "Chevrolet" brand that GM have chosen, not to represent growling V8s, but their cheap and nasty models in Europe: Those models spawned from GM buying Koreas horrible Daewoo -remember them?

Exactly. This (3-stage) strategy has been in place since 2002, and is nothing new. They are just trying to make some room for Chevrolet, eg. less generous Opel/Vauxhall discounts. Why would, for example, Avis buy 5000 Chevy Cuzes at 15% off if they can buy Opel/Vauxhall Astras at 38% off? At the moment they pay less for a better car.

Detroit is pushing Chevrolet globally, as their US sales are loosing ground quickly to Ford, Chrysler, Toyota and Honda. In Detroit they just don't understand that in Europe Chevrolet brand = rubbish.

InsideInsurance wrote: »

The "German" bit was a comment from their ex CEO in Jan 2010. There is nothing to say they are repeating that tactic now.

Opel are known in Europe as a German car company, except for in Germany where they are known as a US-based car company, with very bad reputation for constant factory closure threats, and huge tax avoidance (paper losses, royalties/transfer pricing, etc. sort of like Starbucks here). So yes, they are trying to change their image to more German in continental EU, and especially in Germany.

InsideInsurance wrote: »

You also would need to take into account that the article is European focused and Opel is a german brand, Vauxhall is hardly mentioned at all and again there is no automatic conclusion that Vauxhall will follow Opel's stance

Of course VX is following Opel's stance - VX is just Opel's sales and marketing operation here in the UK (VX is a subsidiary of Opel). Apart from Vauxhall and VXR brands and badges, inlieu of Opel and OPC, Vauxhall is no different to Opel France, Opel Spain, etc. All top level marketing and management decisions are made in Rüsselsheim, not Luton. In Luton you just have the old Vauxhall Griffin House office building (70% vacant) occupied by a few dozen sales and marketing staff to run the local sales network. Even their HR is outsourced.

GolfBravo

jase1 wrote: »

Vauxhall will never be seen as a "German" brand. Won't happen, no matter how hard they try. So the marketing guys will not be able to leverage the Germanness of the cars in this country without ditching the Vauxhall name.

The "German brand" strategy is for continental EU only: "leading European manufacturer of high-quality, desirable automotive products, based on German engineering" competing head to head with rival Volkswagen.

Vauxhall's strategy is "leading manufacturer of high-quality, desirable automotive products, based on advanced engineering" competing head to head with rival Volkswagen.