New distributor named for an enduring favourite
INDUSTRY NEWS/ Opel has appointed a new distributor for SA but it remains to be seen how the strategy will be implemented
Since General Motors (GM) announced it was disinvesting from SA, there has been intense speculation regarding the future of its brands here. While it is official that Chevrolet will disappear, the big question was: what will happen with Opel?
Opel has had a presence in the local market since the 1930s. At the turn of the century it took a back seat to the global Chevrolet brand but since 2012 it has had something of a resurgence, with 13 new Opel models being launched here. Now Opel has announced it remained committed to the country through a new distributor and plans to roll out new models.
NEW OPERATION
The Williams Hunt group has been appointed as the dedicated distributor to import and sell the Opel brand in SA, effective January 2018. Williams Hunt has had GM dealerships for many years and according to Opel it contributes 20% of the brand’s sales in the country.
While the deal is not without serious concerns, Opel promises the new operation will spawn a number of new models too.
It says it will launch the new Opel Crossland X in the second half of 2017 and the Grandland X in 2018.
“Opel has had great success in SA,” says Bill Mott, director of international sales operations for Opel. “Many of our models have enjoyed great popularity among the buying public and have received rewards and acclaim from the motoring press. Just this year, the Opel Astra was the winner of the South African Car of the Year competition — a great indication of the brand’s ongoing success in this market.
“Opel customers can expect the same quality of after-sales support and no changes to existing warranties. We will ensure customers receive outstanding sales and after-sales support as we continue to grow in the South African market.”
Opel says it is well on its way to achieving its vision of becoming the number two passenger car brand in Europe by 2022.
In 2016, its sales in Europe increased 4% with more than 1.6-million vehicles sold, representing its best year in terms of sales since 2011. Its market share grew in 12 markets, while sales grew in 18 markets.
ACTIVE YEAR
Notably, 2017 will be the most active year in the history of the brand, with the introduction of the “7 in 17” model offensive. Never before did the car manufacturer launch that many new cars in a single year.
Over the past two years, Opel sales in SA have grown 9.6%, compared with an overall market decline of 15.5% although it needs to be noted that its growth comes off a low base compared with many rivals.
“We view SA as an important market,” says Mott. “We are confident that the brand will continue to grow from strength to strength globally and here in SA, because of the solid foundation that has been built in the 80plus years Opel has been here.”
It remains to be seen exactly what plans Opel and the Williams Hunt group will put in place, particularly when it comes to retention and appointment of dealerships. With Isuzu Motors taking over the GM operation and Williams Hunt taking over Opel, there will be many questions we hope will be answered in the months ahead.