PS. (September 17): How much worse can it get, as I continued through? A lot.
On p. 320, we get an admission that Parissien was wrong on p. 314: the Honda Accord was the first Japanese-branded car to be made Stateside. At least an earlier error was corrected. But they begin again on p. 321: Parissien claims the V30 Toyota Camry dominated the US mid-size car market (it was never sold outside Japan; he’s thinking of the XV10, or the Japanese-market Scepter, which was badged Camry). Correcting his error on p. 322, the Camry was not specifically targeted at the US; it was Toyota’s attempt to create an efficient car from the ground up, and it was not done in 1980, but 1982 (the 1980 Celica Camry was not sold outside Japan). The Paykan deal was cemented long before George Turnbull got to Iran (p. 324), though local content rose in the 1970s for it to be truly Iranian-made and Parissien might mean the shifting of the engine tooling there, if I’m being generous. There is only one world, not multiple ones (also p. 324), unless Parissien knows something about parallel universes that the rest of us don’t. Surely Chrysler managed to launch its T-115 minivan (Dodge Caravan, Plymouth Voyager) before Renault launched the Espace (p. 330), and the Triumph Acclaim was never called the ‘Ronda’ (p. 334), though its successor was.
On p. 360, in a single paragraph, Parissien makes several errors. The MG 6 launched as a five-door car, not his claimed four. There is no such thing as the Roewe 150, in China or elsewhere. The MG 3 has five doors and is not a three-door counterpart to the 6. The five-door MG 6 launched not in 2011, but in 2010, and the Magnette name was only used in the UK for the four-door. The founder of Chrysler was Walter Chrysler, not Walther (p. 364). The Lancia Delta only became a Chrysler in the UK and Ăire, as far as I know (p. 365), and remained a Lancia in most countries. The Belgian designer is Dirk van Braeckel, not van Braeckl (p. 368); Mercedes-Benz never bought an 18·53 per cent stake in Volkswagen (p. 369); and CitroĂ«n’s BX was not the last car in that range to have ‘pneumatic suspension’ (p. 372). The Malibu was not a Saturn, but a Chevrolet (p. 375), and Buick was never sold off (p. 376). The Ford Mondeo did not replace the Telstar in all Asian markets (p. 377), and it shared far more than the ‘windscreen, front doors and rear’ with the Contour and Mystique (in fact, the rear was not shared, though there were common engines, platform, and plenty more). It’s not entirely certain that the US market judged the Contour to be too small (p. 378), but there was a lack of marketing (which would have made an even better story than the one Parissien writes about). Ford subsequently filled the Contour’s niche with the smaller Focus Stateside. The CD338 Fusion was never sold in Australia (also p. 378). Ford never resurrected the Taunus in Germany under Alan Mulally (p. 381)âthis invention is incredible. VAZ did follow up the 2101 with something similar after it ended production in 1983 (not 1984, p. 382), viz. the 2105, which was about as similar as one could get to the 2101.
On p. 384, Parissien claims Acura’s Legend sales were ‘disappointing’, after saying they were ‘beginning to sell rather well’ 50 pp. before. The Hindustan Ambassador was not based on the 1954 Morris Oxford (p. 389): that car was actually the Hindusthan Landmaster. The Ambassador was based on the 1957 Morris Oxford III, and was in production from 1959, not 1958. The Red Flag (or Hongqi) marque was not reborn on an Audi A6 (p. 391), but the marque had been used on a version of the Audi 100 C3 from 1988, and no Hongqi bore an AudiâChryslerâHongqi brand name. The Chinese company is Dongfeng, not Dongfen (p. 391), and Parissien’s claim that the Everus was sold in the west (p. 392) is news to me, as I am sure it is to its own management. I’ll stop there for now.
P.PS. (September 18): Some bedtime reading, or should I say error-finding, last night. On p. 394, Toyota and Aston Martin did not jointly develop the Cygnet: Toyota developed the IQ in 2008, and Aston Martin converted that car to become its Cygnet, and ‘hot hatch’ is a very optimistic description for a city car. Toyota did not launch the Cygnet in 2008 as Parissien claims, nor did it have a say in what customers were expected to purchase the Cygnet: it was aimed specifically at existing Aston Martin owners, not ‘Toyota and Aston expected initial demand to be limited to those who already owned an Aston Martin sports car.’ It was certainly no ‘eccentric experiment’ of Toyota, but of Aston Martin. Volvo never made a model called the A40 (p. 395), and I bet Nissan is surprised to find that the original Qashqai was designed ‘at the firm’s Milan design centre’ (p. 397) when it was designed in London. Maserati never launched a Jeep-based SUV called the Kubang (p. 397), but it did have a concept of that name, and the Levante appeared in 2016 after the book was published. There is no such car as the Porsche Cajun, and if Parissien refers to the smaller Porsche crossover, then that is called the Macan, and it has five doors, not the claimed three (p. 397). The Volkswagen New Beetle was not on a Polo platform (p. 399), but a Golf one, as was its successor (though a newer Golf); and Ford would dispute that its Mustang is a sedan (p. 401). If J Mays’s first name is J (as footnoted), then there is no need to refer to him as ‘J. Mays’ (p. 401). The Ford Ka’s name is not derived from StreetKa (p. 402): that was a model spun off from the Ka in 2002; and some would regard the Mk II model was being superior to the Fiat 500 on which it is based (especially as Fiat adopted some of the changes for its own model). I have yet to see a Smart with a Mercedes-Benz three-pointed star or marque anywhere, unlike Parissien who seems to think they are badged Mercedes (p. 403), and a Smart SUV does not exist unless Parissien is reporting again from his parallel universe (p. 403). There is also no such car as the Kia Exclusive (p. 410).
I’m not so sure that GM going into talks to sell Opel and Vauxhall to PSA (PeugeotâCitroĂ«n) is that big a surprise.
We obviously hold a lot of nostalgia for these brands, and itâs only right that we perceive GM as selling its family jewels. Opel has made some great cars over the years, and Buick in China and the US, Vauxhall in the UK, and Holden in Australia rely on this division to provide it with product.
But it wasnât long ago that I said I foresaw the next Holden Commodore being a four-door booted model based on a Chinese Buick Regal thatâs on the same platform. While Iâve been proved wrong with scoop photos and inside information from journalists in the immediate term, longer-term this doesnât look so far-fetched, in a future where Peugeot owns OpelâVauxhall and GM has no choice but to consider Chinese sourcing seriously.
Therefore, GM isnât thinking that itâs selling off the family jewels, at least the GM where Chinese partner SAIC is overwhelmingly calling the shots.
What they are thinking is this: âWe should be able to develop the whole lot in China.â They werenât nostalgic over Holden, and they wonât be thrilled with the losses at Opel. Itâs willing to sacrifice it to make its own position stronger. Weâve already seen that SAIC has called it quits when it comes to British assembly at Longbridgeâthatâs now all done back in China.
Thereâs been such a massive technology transfer from the US to China over the last few years that Europe is seen as surplus by the folks in Shanghai. They have all the platforms on which they can make products globally. They may even, rightly or wrongly, think that the remaining brands can get them into Europe, even if GM had pulled its Korean-made Chevrolets out of there.
Holden can be used to westernize the product and the Australians have shown they can do it well.
Iâm not saying I agree with this, as a long-time Opel fan. I was looking forward to the new Commodores coming out of RĂŒsselsheim. The car looks the business, itâs roughly the size of the recently deleted Ford Falcon (therefore, Iâm not sure why people are so upset about its size), and the majority of buyers donât even know which set of wheels the powerâs going to. Iâve got an Astra K coming in a few months at Lucire.
What youâre going to see is GM basically being a Shanghai-run firm with China supplying global markets and the US operations kept going for their brand cachet.
In the meantime, a hypothetical PSA-run Opel will continue with the existing plans till the end of these modelsâ life cycles, then China will become the manufacturing hub for numerous markets.
SAIC already makes a load of Cadillacs, Buicks and Chevrolets for the domestic market, and theyâll want to pump them out more widely.
Theyâve also shown that they can take new GM platforms and turn them into Roewesâor old GM platforms and turn them into Baojuns.
PSA, meanwhile, with 14 per cent controlled by Chinese firm Dongfeng, will pursue a strategy of streamlining platforms and be focused more on Europe. It could pay off as cross-town rival Renault has done well with Nissan, Mitsubishi, Samsung, Dacia and AvtoVAZ, but it wonât nearly be as secure. The two French groups have been obsessed with one another for as long as I can remember, for years spending more time rivalling each other than actually coming up with what customers wanted.
Dongfeng may have to cough up more lolly and it could become a larger shareholder than the Peugeot family or the French government. But will it have the sort of geographical coverage that Renault has?
Thatâll be what PSA will be asking itself, knowing that itâs reasonably strong in Chinaâbut also realizing that it hasnât been clever at creating models that can be sold globally (the current CitroĂ«n C6, DS 5LS and the DS 6 among them, sold exclusively in China). Nevertheless, there are savings to be had, though the most obvious fear is that Opel and Vauxhall will go the way of Panhard and Talbot, brands that fell into either Peugeot or CitroĂ«nâs hands over the years and become defunct at the expense of the parent companiesâ. Is there a desire to extend the groupâs brand portfolio beyond Peugeot, CitroĂ«n, DS, the various Dongfeng lines, and the ex-Hindustan Ambassador?
The official statement is non-committal enough and gives nothing away: âPSA Group and General Motors confirm they are exploring numerous strategic initiatives aiming at improving profitability and operational efficiency, including a potential acquisition of Opel Vauxhall by PSA.
âThere can be no assurance that an agreement will be reached.â
In any case, we always said that SAIC was playing a long game. MG was a toe in the water. GM is the real deal.
Controlling GM means they can do as they please, and whatâs good for China is good for General Motors.
Above: The Holden Commodore SS-V, facing its last year of manufacture.
The current wisdom appears to be that when the Holden Commodore VF leaves production in 2017, itâll be replaced by the liftback version of the Opel Insignia B. After all, the only big sedan Ford Australiaâs offering in place of the now-defunct Falcon is the liftback version of the Mondeo, a car thatâs wider, taller, and with a longer wheelbase than the supposedly larger Falcon. I think the crystal ball-gazers are wrong.
I could say that the Australian and New Zealand big car buyer is very traditional and would balk at the idea of the big Holden being a hatch. But thatâs not the only reason. Thereâs a bigger one: China.
Above: GM currently makes the Opel Insignia A-based Buick Regal in China, after initially beginning with German production.
Arthur Daley, Opel’s last New Zealand spokesman: âNever mind the Capri, Tel: I sell Opels now.â
In the Fairfax Press, General Motors has apparently confirmed it will bring in Opel-branded cars to sell alongside Holden-branded ones.
It’s an obvious move. For years, a good part of Holden’s range was Opel-designed. Like Vauxhall, the model name was the same as the Opels on the Continent, but with Holden in front, with the exception of the Opel Corsa (called Holden Barina).
In fact, New Zealand fielded the Holden Vectra before Australia introduced this model with the B series. The two markets have often differedâthose old enough might remember the Holden-badged version of the Isuzu Aska, assembled locally as the Camira in favour of the Australian model.
Australia, which I believe still has tariffs on motor cars, found the Opel-made product increasingly expensive, especially against Hyundai, which has carved huge inroads into the market. In the mid-2000s, the Opels began disappearing in favour of Daewoos. The Opel Corsa C gave way to the inferior Daewoo Kalos. The Opel Vectra C, never facelifted, gave way to the Daewoo Tosca. The Daewoo Lacetti was inserted below the Opel Astra G and H, though the latest Lacetti PremiĂšre, badged Holden Cruze, has supplanted both the former Lacetti and the Astra.
In other words, Holden’s product was outclassed at every level by its principal rival Fordâcertainly on this side of the Tasman, where CD-segment vehicles sell particularly well. Maybe Holden had Ford licked on price, but in terms of brand equity, it was falling fast. Perceived quality? Forget it. Brand loyalty? Don’t think it’s going to happen. There is very little that’s desirable about a Daewoo, though I admit to appreciating the Winstorm SUV’s styling. The car as a commodity? That’ll be the Daewoo.
The Astra still has a lot of fans in Australia, so the plan is to bring in that model at leastâand as affordable, European cars, positioning roughly where Volkswagen is. Corsa, Insignia and others will come in as well, with both a new dealer network and some Holden dealers.
The analysts have found that in Europe, Chevrolet (Eurospeak for Daewoo) has not cannibalized Opel sales. No surprises there. Take me: an Opel customer. I wrote to Holden some years ago, when they threatened to bring in the Daewoo Tosca, that there was no way in heck I would get one of their cars. I’m willing to bet that I wasn’t alone in feeling that way, and the fact the Tosca looks like a Seoul taxicab helps my argument.
Why not, I said, bring in Opels and pursue a unique model strategy, as GMNZ did in the 1980s and 1990s?
The question now is price. Opels were sold here in the 1980s at a premium and found few customers. It was only with the 1989 introduction of the Vectra A, at a reasonable price, that GM began clawing back market share in that segment. New Zealanders didn’t seem to mind whether the car was branded Opel or Holden, but when it did become a Holden in 1994, it made marketing a great deal easier.
Fairfax hints that Opels will carry a premium in Australia. But it rightly points out that Ford has European-sourced models that are competitive. However, I can make one thing very clear for New Zealand: if GM decides to reintroduce Opel into this market, where there are no tariffs on cars, it’ll have to be positioned against a lot of the competition from Ford. I have a feeling most Kiwis know they are buying German engineering when they head to the blue oval, with the exception of the Falcon, and Ford’s marketing has said as much.
We’ve had a different history from the Australians, and the brand has different connotations. It’s certainly not premium, and there’s very little reason for it to be. Ford might have had Dennis Waterman as Terry McCann singing the Minder “feem toon” do a dealer ad here in New Zealand, but, remember, GM had George Cole, as Arthur Daley, sell the Opel.
George Cole is not premium.
Mainstream European brands have failed time and again with premium pricing here. Peugeot lost sales when it began having ideas above its station. Renault has consistently got its pricing wrong and missed plenty of opportunities.
I have a feeling some of this is due to New Zealanders being world travellers. In a small country, we have to look outward. And that brings us exposure to international brands very readily.
We’ve also had plenty of used Japanese importsâincluding ex-Japan Opel Astra Gs.
It may account for why we don’t fall for the fake snobbery that automakers have tried to slap us with for many years. We seem to adopt best practice on so many things because I believe we’re an accepting people.
Transparency will be the order of the day. GM can’t afford to have Kiwis reject a brand for having ideas above its station should it go ahead with a similar effort over here. It has to balance (our relatively small) volume carefully with cannibalization. It has to consider whether it would like to have Holden’s brand equity continue to dip.
Mind you, we could have avoided all this if in 1992 GM did what I suggested then: badge the whole lot as Opel.* It would have ruined the blokeyness of the Holden brand, but it would have had products that appealed to buyers of B-, C- and CD-segment cars. In 1992, a big Opel Commodore, VP series, wouldn’t have been too bad, would it? And we’d have hopefully avoided this Daewoo experiment that has made ‘Australia’s own’ synonymous with ‘Made in Korea’.
* I know, with hindsight, this would have been a rotten idea, especially with New Zealanders embracing the VT Commodore in 1997. It’s hard to imagine that model having greater success here with a non-Holden badge.âJY