Opel prepares to cease sales operations in China

Gasgoo.com (Shanghai January 5) - Early in March of last year, Opel China announced that it will cease its sales operations in China on January 1 of 2015. The manufacturer followed up by gradually decreasing its operations in the country with the hope of ending its Chinese operations. However, earlier this month, Opel China officials emphasized that they will continue supplying parts and maintenance and quality assurance services.

When asked to give more details about Opel’s retirement, an official representative stated that the manufacturer has decided to focus its resources in the European market. The official added that relying purely on exports makes it very hard for a manufacturer to remain competitive in China, adding that a localization program is needed to ensure growth and build a strong brand image in the country.

Opel’s decision to leave China is in part due to GM’s global strategy GM is very specific regarding the development of its brands in specific markets. In the GM strategy, Buick is aimed at the Chinese and US markets, while Opel is focused on the European market. Worth pointing out is that Opel’s European sales last year exceeded 1.06 million units, and continued to grow the following year. The costs saved by leaving the China market ensure Opel can focus on its most successful market.