General Motors to Roll Out Opel in Europe for Head On Competition With VW

Opel, the General Motors struggling brand, has tough competition ahead, as GM plans to move the brand more up-market to compete directly with Volkswagen AG in Europe. Furthermore, the manufacturer has plans to create distinct identities for all its brands, as several GM executives, including CEO Dan Akerson and Chief Marketing Officer Joel Ewanick, explained in a presentation to analysts on Tuesday in Detroit.

General Motors plans to bring back Opel to its German roots in an attempt to connect with consumers and take a bite of Volkswagen’s market share. At the same time, General Motors will roll out Chevrolet in Europe to be its entry-level brand. In 2005 GM had relaunched Chevrolet in Europe but had a rough time making a footprint there. GM’s European market share in 2010 was of 2.5 percent.

"This is a market where Chevrolet will always have a difficult time penetrating”, referring specifically to the German market."Opel, because of its heritage and because it's a German brand will be a very viable option for customers looking for a car in Germany, and gets us an opportunity to combat our Volkswagen competitor on their home turf,"Joel Ewanik Chief Marketing Officer was quoted as saying by AutoNews.

General Motors’ Opel and Vauxhall brands had a combined sales figure of 549,125 units which means a rise of 2 percent in the first six months of this year. Meanwhile, Chevrolet sales fell 1 percent to 92,061 units sold as estimated by the European Automobile Manufacturers' Association(ACEA) reports.