Weaknesses

Vauxhall's biggest weakness comes from reputation. The long reputation that the maker was prone to rust was never really shifted until the mid nineties, something that had plagued them for over 3 decades.

Also, reports that their cars were uninvolving, boring and uninspiring didn’t help the brand either through the nineties. This was almost as bad as the reputation of rust as it put potential buyers off the maker and damaged the entire range.

Bringing out updated models, a performance division (VXR) and striking designs that were close to their impressive concepts was a bold move for Vauxhall but certainly helped the manufacturer, with some hacks (namingly Clarkson) being made to eat his own words (or hair as the case may be).

Insignia VXR

Another weakness of the brand is severe competition from Ford. The manufacturer has a rival for each of its models from Ford along with other manufacturers. Perceived quality of its german rivals, VW to name one, is much higher than that of Vauxhall. To compete with this, Vauxhall offer more equipment for a lower price, but this does little to take the brand to higher status within the market place and limits its profits.

Also, the introduction of an electric vehicle is long overdue. When the Chevrolet Volt, or Vauxhall Ampera as it will be sold here, was launched, it was considered that the introduction of the model was long overdue. Further reports that the model’s engineering is unsafe, with fires reported in conjection with the Volt being in the media over the latter of 2011, hindering progress and sales.

Ampera

The Ampera still doesn’t bring any new technology to the market. Although this is the first range extended vehicle, explaining the difference between the Ampera's range extending technology and the now traditional hybrid system (used by Toyota for example) is difficult as both systems use similar technology in different ways to produce similar results. Conveying this to the public is not only delayed, but is also a difficult challenge as it doesn't bring anything revolutionary to the car market that, say for example the Nissan Leaf, did last year. 

The market for these vehicle is currently insecure too. The current car market is focused around good economy and saving money. It has changed dramatically over the past decade and Vauxhall need to respect this as it continues to change. Delays in entering new segments and a lack of hybrid and range extended vehicles do little to help to manufacturer. 

The image of Vauxhall is not perceived as a higher-end manufacturer, it is not a premium brand. In a way, this works to Vauxhall's favour, as their target market for certain cars, especially the Zafira, is perfectly matched to the perception that this is a manufacturer for people from all working backgrounds. Increased perceived quality over recent years, along with much bolder designs, are helping to elevate the brand, especially the Insignia which is considered a genuine alternative to the much more premium BMW 3-series.

Saab 9-5

Finally, its GM ownership could impact on the manufacturer in coming years. Looking at the current issues with Saab, especially how GM are refusing to sell certain technologies, it has all but killed the brand, which is something Vauxhall should be concerned with. Introducing the Opel brand to the UK could elevate the brand to a higher preimium status as due to the fact it is based in Germany, it will give a more premium and higher quality connotation to models which are, in fact, exactly the same.

All in all though, Vauxhall are a strong brand which must focus on future technology, design and increased profit margins. New cars such as the Astra GTC/VXR and recently announced Mokka could help elevate the brand.

Sources

http://www.autocar.co.uk/vauxhall/
http://www.autocar.co.uk/News/NewsArticle/AllCars/260777/
http://www.autocar.co.uk/News/NewsArticle/AllCars/260835/
http://www.autocar.co.uk/CarReviews/RoadTestsLiving/Vauxhall-Insignia-2.0-CDTi-160-SE/236060/
http://www.carbuzz.co.uk/blog/Best-Selling-Cars-2011-104
http://www.osv.ltd.uk/latestnews/main-osv-news/vauxhall-to-ape-bmw-in-attempt-to-increase-profits/
http://www.independent.co.uk/news/business/news/vauxhall-lifts-profits-75-as-exports-accelerate-712083.html
http://www.carbuzz.co.uk/
www.vauxhall.co.uk
http://www.audi.co.uk/
http://www.bbc.co.uk/news/business-16066855