According to a source that has knowledge of the plans, Opel is now mulling the introduction of a budget-oriented line-up to address customer demand in the segment.

While such news should always be taken with a grain of salt, the idea of tapping into the low-cost segment really makes sense for Opel. While the cars built for such customer demand will not have great earnings margins, the German automaker would address demand from customers who in the past opted for a Chevrolet brand vehicle. GM’s decision to pull off the brand out of Europe will leave a void at the bottom of the line-up, one that could be quickly filled by competitors.

Also, in recent years, with the advent of the latest financial crisis, buyers have buoyed the segment, triggering record sales at budget-minded brands like Skoda and Renault’s Dacia. After GM decided to focus on Opel alone in the European region, the Chevrolet brand – which is still largely  active (until 2017) – has seen a huge decrease in sales.

The person familiar with the company proceedings now disclosed under condition of anonymity that Opel has been mulling an entry into the lower-cost segments for some time, with the management now aiming to speed up the development.

Via Reuters


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