CEO of Opel, Karl-Thomas Neumann, has said in an interview the automotive sector has to stop giving ever bigger discounts. The hunt for a larger market share has to be handled differently, he thinks.
39% of all Opels sold with discount
It is no coincidence it is the CEO of Opel saying these things: according to market research agency Center for Automotive Research, Opel offers a discount on 39% of all its vehicles - clearly more than its direct rivals Volkswagen (30%) and Ford (20%). The CEO is planning on positioning the newest models differently and is hoping that Opel will get a better image, making a discount less necessary.
The core of the problem is the fact that Opel is mainly focused on the European market, which is going through a massive slump. “It would cost Opel a lot of money to position itself in other parts of the world. A GM-brand such as Buick is far better suited for it”, says Neumann in Handelsblatt. Last year Opel discovered first-hand how difficult it is to get a foot in the door in new markets, when its launch in Australia failed miserably.
Opel and its British copy Vauxhall currently have a market share of 8% in Europe. That puts them in fourth place, following Volkswagen, PSA (Peugeot-Citroën) and Renault.