Opel pull out of Australia

The German arm of the General Motors empire sold only 541 cars in a shortened 2012 sales year, and had added a further 989 sales up to the end of June. Opel said the highly competitive local market, marked by cost-cutting and low prices in the segment Opel competed in, wasn't sustainable.

Opel Australia said they will honour all existing sales agreements, as well as servicing (likely to be bumped across to Holden dealers), but the few Opels in private hands in Australia will likely take a big hit when it comes time to trade in time, as a 'dead' brand will be unpopular with buyers.

The official release from Opel Australia reads as follows:

Opel Australia will cease operations and will commence winding down its network immediately.

In order to be competitive, Opel Australia would need to follow recent competitor price reductions, and significantly reposition the price of its core volume models.

These changes, combined with the continued investment required to ensure brand awareness, result in a business which is not financially viable for any of the parties involved.

Opel will now begin analysis together with Holden regarding the potential for future Holden-badged niche product, in order to ascertain if opportunities for individual carlines exist.

Opel Australia is working closely with employees, dealers and suppliers to conduct this closure process in an orderly and responsible manner. As always, customers are of the highest priority, and Opel Australia will remain in close contact with them, to ensure all on-going obligations to these customers are met.

Customers are encouraged to contact the Opel Customer Assistance Centre on 1800 993 677 with any concerns or questions.