The Opel brand will remain in South Africa, driven by a raft of new product starting with the Crossland X in the latter half of this year – with Williams Hunt taking over the exclusive distributorship of the product.
Opel South Africa, which still has to be formally structured as the separation from General Motors South Africa continues with the decision by the US company to end it operations locally, and this entity will be the importer and handle issues such as product planning, brand activation and the like.
From 2018, Williams Hunt will have 35 Opel dealers in play, not all of which will be owned by them according to divisional executive, Roy Pepper who adds: “Some will be franchised dealers.”
Williams Hunt has been an Opel partner in South Africa for many years contributing to some 20% of the sales. With this setup Opel plans to further grow in South Africa and strengthen brand and service to its customers.
The German car brand will launch the new Opel Crossland X in the second half of 2017 and the Opel Grandland X in 2018. Opel customers can expect a continued focus on strengthening the portfolio with new and exciting German-engineered vehicles that meet and exceed expectations.
“Opel has had great success in South Africa,” says Bill Mott, director of International Sales Operations.
“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 aftersales support and no changes to existing warranties, and we will ensure our customers receive outstanding sales and aftersales support as we continue to further grow in the South African market.”
Opel is fast on its way to achieving its vision of becoming the number two passenger car brand in Europe by 2022.
In 2016, Opel sales in Europe increased approximately 4% with more than 1,6-million vehicles sold, representing the company’s best year in terms of sales since 2011. Opel’s market share grew in 12 markets, while sales grew in 18 markets.
Over the past two years, Opel sales in South Africa have grown 9,6%, compared to an overall market decline of 15,5%.
“We view South Africa as an important market. We are confident the brand will continue to grow from strength to strength globally, and here in South Africa, because of the solid foundation that has been built in the 80-plus years Opel has been here,” says Mott.
On the downside, it seems the Chev Utility that started life as the Opel Corsa bakkie will not be rebadged and Opel and will not be taken up for continuation by any of the players in this complex scenario.
Decisions taken by General Motors in the US to divest themselves of any business not making financial sense were triggered by the sale of Opel to the PSA Group in France (Peugeot) and followed by withdrawing from countries such as South Africa and India.
While Peugeot now actually owns Opel, the South African scenario is – as usual, bless us – unique in that there will be no association between Peugeot and Opel with the two brands operating independently of each other.
Peugeot Citroën South Africa sold a majority stake to Japan-based company VT Holdings, meaning that it is no longer a wholly owned subsidiary of the PSA Group.
VT Holdings, which is listed on the Tokyo Stock exchange, has been in the automobile industry for some 34 years, distributing vehicles in five countries.
The holding company officially acquired a 51% stake on June 1, with Peugeot Citroën South Africa saying the joint venture “allows the Peugeot brand to strengthen its position in South Africa through an upgrade of the entire value chain”.
“It is time to move forward in creating a new and exciting vision, one that produces even greater opportunities to our employees, dealers and most importantly to our customers,” said Francis Gaie, the new managing director of the local operation.
“We have new developments planned around products, aftersales and parts which we are confident will result in greater efficiencies, increase our market share and strengthen our position in the South African market place,” he added.
In Europe, there will be considerable interaction between the two brands in terms of vehicle platform sharing, engine and drivetrain technology collaboration among them – in fact, the soon to be launched Crossland X is powered by a Peugeot-derived engine.
The Grandland X, due for release next year, is a joint development between Opel and Peugeot and could well feature a version of the Prince engine – the company name for a family of straight-4 engines developed by PSA Peugeot Citroën and used by BMW.
The current Peugeot 208 uses this technology.
Africa, is in charge of overseeing the GM withdrawal but says, “This announcement by Opel is based on a solid foundation that will be ideal for its new journey in Africa.”