Opel Pulls Out From Australia image

Opel decided to stop selling vehicles in Australia, only oneyear after it entered this market.

In August 2012 Opel started deliveries of the Astra, Corsa and Insignia models in the Australian market, but as sales were disappointing the automaker decided to stop sales here. In 2012 the company sold only 541 vehicles and 989 units year-to-date through its 20 dealerships. Opel Australia said that the automaker has to reduce prices and make investment in the automaker’s awareness, a move which will not be financially viable.

Opel Australia and Holden said they will discuss about the viability of selling Holden-badged Opel models in the near future. The automaker said that it will meet all customer obligations and that it will work closely with dealers, employees and suppliers through the closure process.

The auto manufacturing industry in Australia is slowly dying, worrying automotive component suppliers and their employees. After Ford announced it will stop production in Australia, only two automakers were left standing: Holden and Toyota.

Holden said it will invest $1 billion in the region to manufacture two new vehicle models in the following 10 years. Toyota also plans to stay in Australia, after it recently opened a new $330 million engine production plant for vehicles sold both locally and to Asia. Over the past years Toyota, Holden and Ford received billions of dollars in government assistance.

Source: worldcarfans.com