Strengths

Vauxhall's parent company, GM, has considered selling the manufacturer numerous times due to its small profit margins. Many of these margins come from the manufacturers lower model price. Using the Astra as an example, this model is on average 11% cheaper than its similarly equipped German rival, the Golf. This is one of the aspects identified by GM as contributing towards operational losses of Vauxhall.

To combat this, several external consultants have been appointed to help improve the packaging of trim levels and options, to make customers spend more, and to reduce engineering costs without compromising build quality. This will be critical to the brand, especially if it wants to rival BMW and VW on perceived quality. 

Vauxhall's market share however is strong. Figures published on the carbuzz website show that UK’s 3rd best selling car was the Corsa. In 5^th was the Astra, closely followed by the Insignia. However, beating the Corsa to the top two places was Ford, Vauxhall’s main rival, with the Fiesta in 1^st place and the Focus in 2nd.

The current Astra 5-door

Worrying are the statistics that show the Astra’s sales fell by 28.9% and that its two main rivals, the Golf and Focus, both sold more cars (The Golf reached 4th place). Promisingly, the Insignia out sold another main rival, the BMW 3-series.

News that new car registrations were down by 4.4% give a little relief to reduced sales figures, but dramatic drops in sales, such as the Astra by almost a third, is concerning.


In the first half of 2011, their market share was 11.95%, amounting total sales of 150,000 vehicles. By the end of 2011, their market share was 9.12%, making it number 2 in Britain's car market. 90% of the vehicles built at Vauxhall's Ellesmere Port plant and 65% of the vans built in Luton are bound for export, showing the manufacturers belief in the UK economy. 

Blade styling first seen on the Insignia

To aid market share, over the next 12 months will see Vauxhall re-enter a number of markets with new models. This includes a range-extended electric vehicle, a small SUV, a cabriolet and a "junior" car. This will also boost the media coverage of the brand and (hopefully) increase sales.

A strong feature for the past 3 years has been Vauxhalls new design and styling language. This incorporated a new logo/badge, hockey-stick-style blade side styling and much bolder lines. The blade theme runs throughout the car, with head and tail lights folding around the corners of the body and specifically designed light detailing (rather than just light clusters divided up) all adding up to cars that are a lot more desirable and dramatic.

Wrap-around dash

This design continues inside, with cabins of new Vauxhalls all featuring wrap around dashboards and a lack of straight lines and simple designs. All of these touches, along with better perceived quality and increased technology, are slowly taking the brand more up market. Combining this with the increased research should stand Vauxhall well in the coming years.

The engineering of Vauxhall models, and Opel ones for that matter too, is largely done in Germany. European research and development is conducted at Luton, due to the UK having a unique blend of roads and road surfaces, which push the chassis and its development to new levels.

Sources

http://www.osv.ltd.uk/latestnews/main-osv-news/vauxhall-to-ape-bmw-in-attempt-to-increase-profits/
http://www.vauxhall.co.uk/about-vauxhall/company-information/about-us.html
http://www.carbuzz.co.uk/blog/Best-Selling-Cars-2011-104
http://www.independent.co.uk/news/business/news/vauxhall-lifts-profits-75-as-exports-accelerate-712083.html
http://www.independent.co.uk/news/business/vauxhall-profits-collapse-to-pounds-3m-1316741.html
http://www.vauxhall.co.uk/about-vauxhall/company-information/about-us.html
www.vauxhall.co.uk
www.newspress.co.uk
Vauxhall press office
http://www.autocar.co.uk/News/NewsArticle/AllCars/260835/