Vauxhall 2010 downturn
March 5th, 2010 by Richard Aucock
VAUXHALL Opel chiefs are anticipating a downturn in the market for 2010 with Germany bearing the brunt.
Many analysts say the car market will be 1.5 million units down on 2009 levels – with the German market alone expected to drop 1 million units.
This is due to the end of scrappage schemes and the continuing effects of the economic downturn. However, hard-pressed car makers will not be upping their incentives to compensate for the end of scrappage.
Vauxhall Opel vice president Alan Visser told Car Dealer Magazine the market is extremely aggressive, and car makers cannot afford to top up incentive schemes. Vauxhall has, instead, specifically anticipated and accounted for lower sales volumes in its plans.
‘We anticipate volumes will go down in 2010,’ he told us at Geneva. ‘Indeed, our forecasts probably now err on the conservative side.’
Key seller for Vauxhall is currently the Astra. The full-year target was 180,000 5-door cars – but already, it has received orders for 100,000! ‘It is a similar situation to that of Insignia last year; demand was such, we eventually sold 160,000.’
The firm has also introduced the all-new Meriva, and taken the model upmarket in the process. Prices now start at £15,500, as the model takes on more of a compact MPV role. It is bigger as a result and, of course, features those distinctive rear-hinged rear doors.
Soelected dealers do hybrid
One big development for the future is the launch of the Ampera EREV extended-range electric vehicle eco model. This is where much marketing research is under way right now, to work out how the model will be sold – or, more likely, leased.
The dealer sales network will be targeted and limited, though. ‘Maybe only a handful of car dealers will initially be asked to make the investment needed to sell and service the Ampera,’ said Visser.
‘Lots of new tools and technologies are required for it, so we can’t take it for granted that every car dealer will OK the investment for this.
‘It will therefore be sold through a selective distribution network.’
EREV and electric-drive car numbers will not be huge in the early days, adds Visser. ‘The reality is that, although sales will start next year, they will not replace the normal combustion engine for at least the next decade.’
It is a start, though. Longer-term, it will also include sleek additional models such as the large-car Flextream GT/E concept.
Could you be a Vauxhall dealer willing to invest in retailing extended-range electric vehicles?
By Richard Aucock
Car Dealer Magazine Geneva 2010 coverage
Tags: geneva 2010, new car sales, opel, Vauxhall