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Opel Australia shut shop

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by Stephen Walker

4th August, 2013

On Friday, 2nd August 2013, Opel Australia announced it will cease operations and will commence the closure of its dealer network effective immediately.

Opel Australia sold 541 vehicles in 2012 and 989 in 2013 (June YTD), through a network of 20 Opel dealerships.

The competitive nature of the Australian market appears to be behind the decision of Opel Australia. The General Motors owned brand, based in Russelsheim Germany and managed locally from an office based at the Melbourne HQ of Holden, indicated that the Opel products required price repositioning to be competitive in the local market. However, Opel Australia identified a price reduction would make their business case unsustainable from a financial perspective.

Opel's 2012 release in Australia was seen to be an effective means to gain better production figures from Opel's under utilised manufacturing plants in Europe. GM, having lost market share in Europe, has too much production capacity in Europe.

The failure of the Opel brand in Australia follows the failed attempt, by General Motors, to launch their Cadillac brand locally in 2009.

No announcement has been made regarding ongoing issues for owners of Opel cars. For example servicing, warranty and spare parts availability are not yet the subject of a public statement by Opel Australia.



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