Vauxhall To Ape BMW In Attempt To Increase Profits
Vauxhall is hoping to emulate BMW with advanced options packages for its models in an attempt to lift the average sale price and profits for GM’s UK subsidiary.
On average, the price of each Astra sold in the UK is 11 per cent less than customers spend on a comparably equipped Volkswagen Golf. This is just one of the things GM has identified as contributing towards operational losses for the Luton based manufacturer, which the US giant has threatened to sell several times to help it out of its own financial hole.
It has appointed the assistance of external consultants to help work out how it can better package its trim levels and options to entice customers to spend more.
The Insignia and Astra now have an option called “forward lighting” that adjusts the headlight angle for high-speed driving. The headlights also turn with the front wheels. Vauxhall will be aiming to introduce more features normally only found on luxury cars, a move mirrored by Ford, whose new Focus features self parking — the preserve of luxury brands like Lexus only a few years ago.
The study will also assess how engineering costs can be reduced without impacting quality of its products — important if it is hoping to match BMW and VW in market perception.