Opel to venture into budget cars as part of turnaround, wants to take on Dacia and Skoda

Article by Christian A., on July 25, 2014

Opel is planning to produce a range of entry-level cars to recapture budget customers who had owned Chevrolet units, a person privy with the matter told Reuters. The source said Opel, a unit of General Motors and a sister brand of Chevrolet, has been missing out the demand for value cars that has so far benefit Dacia and Skoda.

The source added that GM has been mulling a possibly entry into the Europe value segment, adding that management is currently seeking ways to expand the Opel range following several years of restructuring.

The move to offer entry level cars is part of a wider European overhaul aimed at turning over organizational responsibility for GM's brands in Europe to Opel Group GmbH, which was recently created with around 100 employees.

Opel Group will now take care of Chevrolet's operations in Russia as well as of Cadillac brand in Europe, according to a spokesman. In June, Opel chief executive Karl-Thomas Neumann remarked that the automaker was mulling a car designed to capture buyers of other value brands.

The Financial Times recently said that GM is planning to introduce a line of low-cost models. In October 2013, General Motors put its Russian operations back under the control of its European arm.

Two months later GM dropped the Chevrolet brand in Europe to focus on its Opel and Vauxhall brands.GM has made a turnaround of its European business a top priority after racking up some $18 billion in losses over the past 12 years.

If you liked the article, share on:

Topics: opel, low cost car

Comments

Recommended

TOYOTA GAZOO Racing revealed that it will be participating in the 2018 Tokyo Auto Salon with the theme “Meister's Workshop.” The company will showcase models that have been part of...
by - December 16, 2017
Infiniti has commenced sales of the new 2018 Infiniti QX80 full-size luxury sports utility vehicle. Aside from the standard specs and optional features, potential customers would want to know how...
by - December 15, 2017
If there is one thing that Pagani Automobili and Fiat have in common, it is the fact that they are Italian companies that build and assemble vehicles. There is currently...
by - December 15, 2017
It’s Star Wars fever once again, and the second installation of the trilogy sequel -- “Star Wars: The Last Jedi” -- is finally hitting theaters. Avid fans of the franchise...
by - December 15, 2017
Audi Sport is known for creating high performance versions of some Audi vehicles, with a focus on higher levels of sportiness. So far, its high-performance creations are all powered by...
by - December 14, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries