European car manufacturer Opel has announced it will cease operation after less than a year in the Australian automotive market.
The auto manufacturer has ended all operations and commenced the closing down of networks across their 20 dealerships Australia-wide.
In a statement, Opel claimed they would need to follow recent competitor price reductions and significantly reposition the price of their core volume models in order to compete.
“These changes, combined with the continued investment required to ensure brand awareness, result in a business which is not financially viable for any of the parties involved,” the statement read.
“Opel will now begin analysis together with Holden regarding the potential for future Holden-badged niche product, in order to ascertain if opportunities for individual carlines exist.”
Many Opel models, such as the Astra, have been rebadged for sale by popular Australian car manufacturer Holden.
Opel’s decision to withdraw from the Australian market coincides with Industry Minister Kim Carr’s announcement on Monday to provide an extra $200 million for the automotive industry.
The extra funding is intended to ensure the viability of automotive manufacturing within Australia.