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Once Buick's lifeline, Opel isn't so crucial anymore

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#1 ·
Once Buick's lifeline, Opel isn't so crucial anymore
February 17, 2017
Michael Wayland
AutoNews.com

DETROIT -- Buick’s sales success and product expansion in recent years have been driven by General Motors’ decision to incorporate platforms and vehicles from the Opel division into the brand’s lineup.

If talks between GM and PSA Group lead to the sale of Opel, Buick’s lineup likely would be affected. However, GM already has gotten more out of Opel for Buick than many ever would have imagined eight years ago -- the last time the automaker nearly sold the German division.

After GM emerged from bankruptcy in 2009, executives tapped Opel to fill out Buick’s thin product portfolio, which consisted then of the LaCrosse and Lucerne sedans and the Enclave crossover. Buick’s U.S. lineup now has seven vehicles, including four models derived from Opels: the Encore small crossover, Cascada convertible, Regal midsize sedan and Verano compact sedan, which ended production in October for the U.S.

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#2 · (Edited)
Dave Sullivan, an analyst with AutoPacific Inc., doesn’t believe Buick would be impacted heavily if the sale goes through, as the brand’s focus has shifted to China.

“I don’t think we’re going to feel it here in the U.S. in terms of product life cycles because I think China has taken the lead on Buick development,” Sullivan said.
Which is basically what everyone openly knows. Buick's focus has shifted to China in such a way that the GM-SAIC/PATAC has the lead in most of the product planning decisions. In fact, I'd wager that GM-SAIC probably has more collaborative product work with Opel than GM North America does at this point.
The next-generation Regal could be impacted by an Opel sale. GM recently released photos and some details of the Opel/Vauxhall Insignia Grand Sport, on which the Regal is based. The Insignia, up to 385 pounds lighter than the current version, suggests that the Regal will become slightly wider and lower, with a longer wheelbase.
This won't be impacted all. The cake is baked and is getting ready for shelves. There's no way that any Opel sale is going to impact that project form moving forward.

Even if PSA were bold enough to take the Opel Insignia and start selling it in the United States (which very well could happen for Opel as a brand at some point, as French cars have a poor reputation in the United States), it wouldn't be for years.

No. GM is smart enough to make such considerations for the Regal (and any other such product). Later on down the line, Buick will probably lean almost exclusively on PATAC for product development, and it's not likely to harm their product pipeline at all.

A much more interesting question to ponder is: How will this affect Holden long-term?! Holden's revival as a brand is very Opel-dependent and they are supposed to import much of their products from Opel moving forward. How will deletion of Opel from the GM Empire impact their future product planning and cadence? I'm not talking about the short/medium-term; but certainly in the longer term after the next crop of products have sun-setted. Holden tried to sell many Chevrolet-sourced products with mixed results. Will they source such products from Buick now?
 
#4 · (Edited)
A much more interesting question to ponder is: How will this affect Holden long-term?!
If you think about it, only the Holden Astra hatchback, Holden Cascada convertible and the upcoming Commodore are rebadged Opels, the rest of the Holden lineup are Chevy-rebadges, this includes the new Holden Astra sedan which is a rebadged Chevy Cruze sedan.


The other question is what will the future of GM's FWD platforms be? All FWD models from the C-segment and up use Opel-developed platforms. Will GM North America start doing its own evolutions of the leftover Opel platforms for the next generation models that will be launched in the next decade?
 
#3 ·
Holden will become a purveyor of cheap Chinese rebadges.
Aussies didn't like paying for real bad-ads Oz-made Holdens, so I guess that's the alternative.
A few American muscle cars will get thrown in the mix.
 
#9 ·
Opel gives Buick the volume to spread global costs and access to Europe which is shut down now for GM and has made Buick into a regional brand and GM into a regional automotive company like PSA is today.

Opel/PSA/Vauxhall will become the automotive industry's "Airbus" while GM becomes it's "McDonnell Douglas" (who is not around anymore).

This is not a wise move by GM, and will only allow PSA to enter the N.A. market and grow into what Hyundai/Kia has become.
 
#10 ·
If you read other reports on this site, then you know that Buick is the power in the Buick/Opel/Vauxhall/Holden combine. Buick is GM's second best selling brand. Opel/Vauxhall limps in way behind. It is Buick that earns a profit. Opel/Vauxhall loses money. I might add that the new generation Regal/Insignia was designed by Buick--Buick Inc. Industries--to be accurate.

I think that it is a bit of an overstatement that Buick will be unaffected by the sale of Opel to PSA. However, I think that Buick will transition to an Opel-less GM with minimum disruption.
 
#11 ·
If GM had been anyways serious about elevating the perception of Opel and Vauxhall in Europe,
it would have commissioned Opel to develop the Alpha platform for cars and Utilities
and not locked it up with Cadillac and Camaro.

That to me was the defining moment when i realized that GM chasing after BMW with Cadillac
was the kind of nonsense that would ultimately cost Opel, Vauxhall (& Buick) dearly or worse, kill them.

Could you imagine Opel Vauxhall with the equivalent of 3 and 5 series cars as well as an X3 and X5 competitor.
I'd say, that was a huge missed opportunity for GM all for the exclusivity of Cadillac and not inclusive of other brands.
 
#27 ·
If GM had been anyways serious about elevating the perception of Opel and Vauxhall in Europe,
it would have commissioned Opel to develop the Alpha platform for cars and Utilities
and not locked it up with Cadillac and Camaro.

That to me was the defining moment when i realized that GM chasing after BMW with Cadillac
was the kind of nonsense that would ultimately cost Opel, Vauxhall (& Buick) dearly or worse, kill them.

Could you imagine Opel Vauxhall with the equivalent of 3 and 5 series cars as well as an X3 and X5 competitor.
I'd say, that was a huge missed opportunity for GM all for the exclusivity of Cadillac and not inclusive of other brands.
IIRC that was the original plan (granted via Pontiac in the U.S.) but one GM should have gone through with but using the existing (paid for) Zeta that could have been used for a competitive 3 and 5 series cars as well as an X3 and X5 competitors for Buick/GMC/Holden/Opel/Vauxall and Cadillac and the NG Camaro for Chevrolet.

Holden, Opel and Vauxall would have received vehicles to improve margins and enter the SUV market.

This is what happens when Regional Brands's wants are put in front of Global Brand's needs.

There's still a lot to do with the brand but yeah, PSA will have then have three brands
to channel french, German and UK buyers - it takes the sameness out of their products
as they can tailor all three to the regional preferences and still sell across all markets.
The other side of this is PSA's commercials being made available to Opel / Vauxhall.
Win, win , win.....

Don't forget the European factor too, all those brands back in European hands means
regional sensitivities are restored and people are able to buy local brands with local roots.
(The evil Americans have gone.)
And GM will not be back.

PSA will figure the brands out and have them maintain/improve their local market positions in France, Germany and the UK.

Look for them to make a push into China, India and Japan as well to spread global costs and increase profitable global sales revenue.
 
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