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GMSA bullish on growth prospects for Opel range

STRONG MOKKA? The Opel Mokka is a small sports utility vehicle and will compete in the local market with the likes of the Nissan Juke

STRONG MOKKA? The Opel Mokka is a small sports utility vehicle and will compete in the local market with the likes of the Nissan Juke

Photo by Duane Daws

24th January 2014

By: Irma Venter

Creamer Media Senior Deputy Editor

  

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There is a “realistic opportunity” to double Opel sales in South Africa in the short term, says General Motors South Africa (GMSA) operations VP Ian Nicholls.

GMSA will sell around 2 915 Opels in South Africa in 2013.

GMSA currently offers the Meriva multipurpose vehicle, the Astra sedan and hatchback, the Vivaro minibus and Corsa to South African Opel enthusiasts.

At October’s Johannesburg International Motor Show, GMSA revealed the new Opel Adam and the Opel Mokka, but made no firm promises on dates for its local unveiling.

“I would introduce these models tomorrow,” says Nicholls, “but we don’t have the flexibility to do so. I can confirm that both are under consideration, and we hope to introduce them in South Africa in the short term.”

The Mokka is a small sports utility vehicle (SUV) and will compete in the local market with the likes of the Nissan Juke.

“There is a growth trend in the small SUV market and the Mokka is well placed to make use of that opportunity,” says Nicholls.

Being a small city car, the Adam makes “several cool statements about the Opel brand – it is chic, modern and features every bit of infotainment people desire [and] . . . it also offers thousands of personalisation opportunities”.

The Adam is set to compete with the likes of the Fiat 500.

The flexibility issues involved in bringing these models to South Africa, Nicholls says, are production capacity constraints for the Mokka, made in South Korea, and outstanding approvals and research in the case of the Adam.

Dealership Changes
Nicholls says GMSA plans to retain common dealerships for its Chevrolet, Isuzu and Opel products in South Africa, but that there may soon be distinct Opel-branded zones in metropolitan dealerships, with some dealers building separate Opel showrooms, depending on sales volumes and location.

“You can expect to see an increased focus from us on Opel going forward.”

Nicholls says Opel has a long history in South Africa, being assembled here in the 1930s.

“We think there is a bigger opportunity for Opel than we have really taken advantage of. The passenger car market in South Africa is very Eurocentric, and Opel brings with it a history of German engineering.”

Nicholls says Opel will not act as competition for GMSA’s Chevrolet line-up, as the two vehicle ranges are “contented and priced differently”.

He emphasises that Opel will not become GMSA’s premium house brand.

Of course, Opel can only truly be promoted in South Africa now that it has somewhat regained its financial foothold following the global financial recession some four years ago.

While not profitable yet, “continuous improvement” shows that Opel is “trending in the right direction”, says Nicholls.

GMSA’s parent, US carmaker General Motors (GM), has provided €4-billion, for the present to 2016, for Opel to create 23 new vehicles and 13 new engines.

GM announced earlier this month that it was pulling its Chevrolet brand out of Europe, as upbeat Opel and Vauxhall sales far exceeded Chevrolet’s performance in the region.

Chevrolet sales in Europe reached 172 100 vehicles in 2012, compared with 834 800 deliveries in 2012 by Opel and its Vauxhall sibling.

In 2009,

GM almost sold the Russelsheim-based Opel, a business it has controlled since 1929, amid a struggle to emerge from bankruptcy.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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