Smaller Opel/Vauxhall dealer network will focus on performance, customer satisfaction

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Thread: Smaller Opel/Vauxhall dealer network will focus on performance, customer satisfaction

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    GMI Staff Member Premium Member nadepalma's Avatar
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    Smaller Opel/Vauxhall dealer network will focus on performance, customer satisfaction

    Smaller Opel/Vauxhall dealer network will focus on performance, customer satisfaction
    Henning Krogh
    Automobilwoche via Automotive News Europe
    April 17, 2018

    PSA Group will focus its slimmed-down Opel/Vauxhall dealership network across Europe on sales performance and customer satisfaction.

    As many as a third of the region’s 1,600 Opel/Vauxhall dealerships could be axed, reports said, after PSA cancelled all dealer contracts this month with two years’ notice.

    Opel’s sales and marketing chief, Peter Kuespert, said new contracts will be offered by 2020 that focus more on performance and creating a stronger culture to promote it. “That will pay off for our performance-oriented dealers,” he told Automobilwoche, a sister publication of Automotive News Europe.

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    Re: Smaller Opel/Vauxhall dealer network will focus on performance, customer satisfac

    Cutting a big chunk of dealers is always good for market share.

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    Re: Smaller Opel/Vauxhall dealer network will focus on performance, customer satisfac

    Very sad news for all those 3,800 employees & their families that will lose their jobs in the UK, l was reading that every single Vauxhall dealership contract will be terminated in the UK which is Opel/Vauxhall's biggest single market in Europe for sales. With one-third less outlets, both Opel/Vauxhall sales will continue to fall due to locality and convenience.

    Poor ole PSA are just waking up to they just bought a "pig in the poke", still you have got to give PSA credit where credit due 10/10 for trying to fix it. Future looks a lot less sales if Vauxhall dealerships are cutback from 326 dealers to 200 dealers it's bound to impact future sales numbers in a big way.


    Vauxhall to 'terminate' entire dealership network as sales plunge
    Source : Daily Telegraph

    Vauxhall is terminating the contracts of all its 326 dealerships in Britain as the company battles to deal with plunging UK sales.

    The marque is understood to be invoking a special clause in franchisees’ agreements that can only be used if the entire network is reorganised.
    Dealers will be given two years’ notice from April 30 that the Vauxhall is ending its relationship with them, say sources familiar with the situation.
    The company - which was bought along with European sister brand Opel last year for £1.9bn by France’s PSA Group from GM - will then invite about 200 dealers to re-apply to sell Vauxhall cars.

    Sales of Vauxhall cars have been falling for some time but the decline accelerated last year, dropping 22pc - more than three times the 5.7pc fall seen across the wider UK market. Last year Vauxhall sold 195,000 cars in the UK.

    One source with knowledge of the plans said: “The market is just to small to support such a big dealer network.
    Last edited by MotownMonster; 04-17-2018 at 10:55 AM.

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    Re: Smaller Opel/Vauxhall dealer network will focus on performance, customer satisfac

    Opel/Vauxhall European market share has already dropped massively from 12.48% in 1995 to 6.56% 2016 under GM, l don't think PSA have done much to stop this decline in European market share it dropped again in 2017 to 6.04%. With one-third of Opel/Vauxhall dealerships disappearing it could be as low as 4% in a few years time.

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    Re: Smaller Opel/Vauxhall dealer network will focus on performance, customer satisfac

    IF as they say this is to "tune" the dealers into ones focused on performance I would assume OPEL/Vauxhall as a brand is refocusing on performance as I assume a separator from the rest of the "french" PSA brands
    and for the LOSS of dealers I would assume PSA dealers in smaller markets might get Opel/Vauxhall OR at least service them
    BUT I bet PSA still needs a LOT of sugar to make lemonade with Opel lemons they have

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    Re: Smaller Opel/Vauxhall dealer network will focus on performance, customer satisfac

    If this is the only way to "fix" Opel, does anyone blame GM for selling them?

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    Re: Smaller Opel/Vauxhall dealer network will focus on performance, customer satisfac

    Quote Originally Posted by BlackGTP View Post
    If this is the only way to "fix" Opel, does anyone blame GM for selling them?
    Opel already seems more integrated into PSA as they did under GM. Don't know if they will make it at the end, but it feels like this time they could do it. After saying it, they are doomed. Aren't they?

    A small selection of Opel headlines from this year.

    2018-01-11 Opel Crossland X is Winner in Euro NCAP “Best in Class 2017”
    2018-01-16 Strong acceleration in 2017: Groupe PSA worldwide sales up 15.4%
    2018-01-29 Opel Continues Export Offensive
    2018-02-14 First Fully Electric Opel/Vauxhall Corsa Will be Made in Zaragoza
    2018-03-05 Opel Records Highest Sales in Germany since 2008
    2018-03-12 Opel Strengthens Overseas Business with Assembly in Namibia
    2018-03-22 Nine additional Centers of Competence for Engineering Center at Opel in Rüsselsheim
    2018-03-28 Export Offensive Continues: Opel Announces Importer for Lebanon
    2018-04-04 Investment in Luton plant to produce a brand new Opel/Vauxhall Vivaro by 2019
    2018-04-04 LCV DEVELOPMENT RESPONSIBILITY FOR GROUPE PSA TO BE BASED IN RUESSELSHEIM

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    Re: Smaller Opel/Vauxhall dealer network will focus on performance, customer satisfac

    Quote Originally Posted by damnitgmi View Post
    Opel already seems more integrated into PSA as they did under GM. Don't know if they will make it at the end, but it feels like this time they could do it. After saying it, they are doomed. Aren't they?

    A small selection of Opel headlines from this year.

    2018-01-11 Opel Crossland X is Winner in Euro NCAP “Best in Class 2017”
    2018-01-16 Strong acceleration in 2017: Groupe PSA worldwide sales up 15.4%
    2018-01-29 Opel Continues Export Offensive
    2018-02-14 First Fully Electric Opel/Vauxhall Corsa Will be Made in Zaragoza
    2018-03-05 Opel Records Highest Sales in Germany since 2008
    2018-03-12 Opel Strengthens Overseas Business with Assembly in Namibia
    2018-03-22 Nine additional Centers of Competence for Engineering Center at Opel in Rüsselsheim
    2018-03-28 Export Offensive Continues: Opel Announces Importer for Lebanon
    2018-04-04 Investment in Luton plant to produce a brand new Opel/Vauxhall Vivaro by 2019
    2018-04-04 LCV DEVELOPMENT RESPONSIBILITY FOR GROUPE PSA TO BE BASED IN RUESSELSHEIM
    But how much of that was already in the works at GM and PSA inherited it?

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    Re: Smaller Opel/Vauxhall dealer network will focus on performance, customer satisfac

    Quote Originally Posted by BlackGTP View Post
    If this is the only way to "fix" Opel, does anyone blame GM for selling them?
    GM is a cancer on brands

    Particularly brands outside of the U.S

    They dont understand them , try to control them and when they offload them use a "scorched earth" policy in the attempt to kill whatever remains

    Only the most dedicated fanboy would think otherwise
    Who the hell approved this abomination? Hidden Content

    I bet it was some dumbarse in Detroit Hidden Content

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    Re: Smaller Opel/Vauxhall dealer network will focus on performance, customer satisfac

    Well, we were told they were going to be profitably by now and Mother Barrah had no idea what she was doing.

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    Re: Smaller Opel/Vauxhall dealer network will focus on performance, customer satisfac

    Is Peugeot and Citroen and also DS for that matter, all sold at the same dealer locations in the UK and Europe? Or are they single stand alone dealerships? Peugeot and Citroen are now all sold from the same dealership locations here in Australia, DS is no longer sold in our market and so if PSA was to re-introduce Opel to our market, I'd imagine they would all become Peugeot, Citroen and Opel dealerships.

    Would Vauxhall be teamed up with Peugeot and Citroen dealerships, if they're not already? This might help with the smaller dealer network coming in the future.

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    Re: Smaller Opel/Vauxhall dealer network will focus on performance, customer satisfac

    Quote Originally Posted by FRENCHY101 View Post
    Is Peugeot and Citroen and also DS for that matter, all sold at the same dealer locations in the UK and Europe? Or are they single stand alone dealerships? Peugeot and Citroen are now all sold from the same dealership locations here in Australia, DS is no longer sold in our market and so if PSA was to re-introduce Opel to our market, I'd imagine they would all become Peugeot, Citroen and Opel dealerships.

    Would Vauxhall be teamed up with Peugeot and Citroen dealerships, if they're not already? This might help with the smaller dealer network coming in the future.
    Smaller is relative. Only 12 of the 385 Opel dealer in Germany don't get a new contract offer.

    In Europe most smaller dealers are standalone dealerships. Other mixing their brands as they want, but in the case of Germany only with brands from within the same company. I bought my Corsa from a Opel/Renault/Hyundai dealership, for example.

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    Re: Smaller Opel/Vauxhall dealer network will focus on performance, customer satisfac

    More trouble on the horizon as Carlos Tavares takes on IG Metall over the future of Opel/Vauxhall.

    Peugeot boss faces toughest adversary yet in IG Metall
    http://www.businessinsider.com/r-peu...-metall-2018-4

    Opel/Vauxhall should be marketed as an all electric brand.
    That would provide numerous entry points for sales within PSA and possibly even FCA.
    A merger between PSA and FCA (viz. Chrysler-PSA) would really turn the tables around for both companies. Opel would fit nicely into both arenas.

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    Re: Smaller Opel/Vauxhall dealer network will focus on performance, customer satisfac

    Quote Originally Posted by jamiepeterson2 View Post
    More trouble on the horizon as Carlos Tavares takes on IG Metall over the future of Opel/Vauxhall.

    Peugeot boss faces toughest adversary yet in IG Metall
    ...

    Opel/Vauxhall should be marketed as an all electric brand.
    That would provide numerous entry points for sales within PSA and possibly even FCA.
    A merger between PSA and FCA (viz. Chrysler-PSA) would really turn the tables around for both companies. Opel would fit nicely into both arenas.
    That was expected. PSA want to make Opel profitable at around 850.000 cars/year. Currently Opel sold more than a million with a loss. Also, since the late 80's, German unions are in decline. Nowadays they are mostly gone or toothless. Sometimes they get a Pyrrhic victory and that's it. That's the new Zeitgeist, but that's another story.

    Funny you mentioned an all electric Opel brand. That was exactly what the former CEO Dr. Neumann wanted for the brand. An all electric Opel brand by 2020. Detroit refused the plan, but it looks like they recycled it for Buick.

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    Re: Smaller Opel/Vauxhall dealer network will focus on performance, customer satisfac

    Are car dealerships in the UK generally smaller than car dealerships in the US? Given the land constraints, I imagine car dealerships there are smaller but more plentiful.

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