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Opel Reviews Dealer Incentives in Europe
PSA Group’s Opel unit aims to revise dealer incentives and impose more discipline to help the brand deliver a 2% profit margin by 2020.
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PSA Group’s Opel unit aims to revise dealer incentives and impose more discipline to help the brand deliver a 2% profit margin by 2020.
Opel also will introduce a top-end trim option called Ultimate in a bid to hike per-sale profits.
Peter Kuespert, who heads Opel sales and marketing, tells Automobilwoche that the unit wants to standardize sales programs throughout Europe. He also intends to restructure the company’s dealer incentive program to shift focus from overall volume to the sale of more profitable models.
Automobilwoche notes that Opel has a reputation for plumping up sales through unprofitable deals for the sake of bolstering its plant utilization rates. The newspaper says 45% of Opel sales in Germany this year were to the company or its own dealers. That compares with an industry average of 29%, according to Germany’s dealer association.
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