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.

Topics: opel, low cost car

If you liked the article, share on:

Comments

Recommended

Kia’s Sorento midsize sports utility vehicle is reaching its mid-cycle for the 2018 model year. Thus, its fans, enthusiasts and satisfied customers are expecting the Sorento to receive an update...
by - July 22, 2017
The Lotus Evora Sport 410 astonished the world after arriving as the more powerful and lighter edition of the already impressive Evora 400. Now, Lotus Cars is throwing in another...
by - July 22, 2017
The Europe-bound WRC hatch developed by Toyota and Gazoo Racing team will be limited to just 400 examples as reported by AutoCar this week. Otherwise known as Gazoo Racing Masters...
by - July 21, 2017
Even cops get excited when they’re assigned to drive the best cars in the market. In Austria, police officers drive around in a Porsche 911 Carrera while in Milan, authorities...
by - July 21, 2017
Subaru has already announced that the all new Impreza will be out by fall this year. The 2018 model year not only gets a number of new upgrades, but it...
by - July 21, 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