Opel gives way to Buick On January 1st, Opel announced its formal withdrawal from the Chinese market. Opel has been in China for 21 years and has an average annual sales of around 5,000 in the past decade. GM China said that GM will take over Opel's after-sales service.
On March 28, 2014, it was a special turning point for Opel's Chinese distributors. This afternoon, it was supposed to be the day when GM held its annual distributor meeting. However, GM China urgently announced the news that Opel had withdrawn from China before the annual meeting.
"I feel that Opel is too eager to withdraw from China." The above Opel dealer said. Unlike Saab who was forced to withdraw from the Chinese market because of bankruptcy, Opel’s exit was not due to sales reasons.
In fact, according to a dealer in Opel China, the average profit of a car in Opel is as high as 3,000 US dollars. The Opel sales team of less than 10 people in GM China has an annual profit of more than 100 million yuan. This is why GM China has been reluctant to hand over Opel to One of the main reasons for the operation of the Shanghai GM Buick team.
However, after taking over Exxon’s general global business, GM’s current CEO, Mary Bola, received an important task to make products more energy efficient. To this end, Bola is carrying out a brand reorganization involving the North American, European and Chinese markets, and Opel's withdrawal from the Chinese market is an important part of the Bola New Deal.
Opel in the Chinese market is not a big deal, but whether it is GM or the partner of the GM China market, SAIC does not want to increase the volume of Opel. The reason is that GM China does not want to create an "infighting" between Opel and Buick. In 2009, GM implemented the strategic transformation of “European and American technologies and global platformsâ€, introduced Opel’s platform in time, and upgraded its models. This also directly led to the direct competition between Opel products and Shanghai general products. Regal and Insignia, Yinglang XT and Opel Astra, although one is imported one is domestic, but the similarity of products, making Buick and Opel in the Chinese market into a strange circle. More and more Opel sales, in fact, more robbed the Buick market.
In recent years, Buick has become more powerful in the Chinese market. Buick's sales in the Chinese market currently account for 80% of global sales. According to Shanghai GM's latest plan, the Buick brand is expected to exceed 1 million in the Chinese market this year.
Instead of creating a competitor for Buick in the Chinese market, it is better to quit. Opel's withdrawal from the Chinese market means that GM has only one Buick brand in China's mid- to high-end car market, and GM will also devote more resources to the Buick brand. According to Bao Wei, Director of Marketing Department of Shanghai GM Buick: “In the Chinese market, Buick should carry out comprehensive improvement of product strength, service power and brand power.â€
Essential difference with Saab While exiting the market, GM has promised consumers a continuation of warranty. The official statement issued by Opel China on March 28, 2014: We will continue to provide spare parts, maintenance and quality warranty for Opel owners. It will continue to provide 10 years of spare parts supply with reference to GM's other foreign and domestic operating practices, and keep prices within reasonable limits.
"Opel's withdrawal from China is still too hasty, too much consideration of its own interests, and did not consider the interests of dealers and consumers." However, the above Opel dealers said.
Like Chevrolet's exit from Europe, GM faced a dealer complaint. In the Chinese market, dealers and consumers may also be “injured†at the same time.
"Since the announcement of 3.28 last year, Opel's car prices have fallen sharply, and the average price has fallen below 100,000 yuan per vehicle, which is the original car that sold more than 200,000 yuan, only need more than 100,000." Opel dealers said. GM also started to compensate dealers on the sales side. However, the after-sales service, GM does not mean any compensation.
In the past, GM had a sales performance and after-sales service parts inventory assessment. The average parts inventory of 4S shop dealers was over one million. However, after Opel exited China, 4S stores had no sales pressure and could not go again. According to the general requirements, the goods are stocked on the after-sales parts, which means that GM's commitment to consumers is difficult to fulfill.
There are also reports that the future maintenance of Opel will be undertaken by Shanghai GM. After Saab withdraws from Shanghai, the after-sales service is also continued by Shanghai GM. However, unlike Saab, Opel is not a sub-brand of Shanghai GM, and GM China did not have a parts center before. It is a commissioned distributor to import accessories. Beijing's Xin Opel is the largest supplier of Opel after-sales parts. It is possible to press the indicator as before, and it is impossible to guarantee that Xin Opel can match the parts and components, and can not control the cycle and price of the parts. This means that consumers can still enjoy the services promised by GM, which is still suspense.
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