The parent company has announced that GM Europe will now be labeled Opel Group, hinting at the growing importance of the German brand in GM’s European strategy.
Alongside the announcement, Opel CEO Karl-Thomas Neumann has confirmed that his brand is considering an attack on the entry-level segment that Chevrolet failed to engage. The company’s primary competition in the low-end of the market will be Renault’s Dacia brand.
“[GM] is definitely not Dacia, but this whole budget and entry-level market segment is very interesting,” the executive told The Financial Times. “They can be admired. We are definitely looking at the segment.”
Neumann admits that Chevrolet was attempting to target the entry-level market, however the bow-tie marque was not a proper fit for the segment. The previous strategy would have caused overlap if Opel had made a similar attempt, however Chevrolet’s departure provides room for the German brand to expand downmarket.
Recent reports suggest Open will launch 27 new or redesigned models by the end of 2018, restructuring the lineup in an attempt to establish profitability after years in the red. Entry-level models could help the company achieve its goal of unseating Ford atop the European market in terms of sales volume.
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