Vauxhall: The British Brand Making Strides in the Automotive Industry
Vauxhall, a British car manufacturer, has undergone a significant transformation in recent years. Previously known for discounting its cars and distress selling at the end of the month, the company has shifted its focus towards an upmarket pricing strategy and a positive brand image. In 2017, Vauxhall became part of PSA, and since then, the average price of its cars sold has increased by 2.3% in the year to date, with an expected increase of 2.5-3% by the end of the year.
Vauxhall’s average car has also changed from an Astra costing around £16-17,000 to a mid-range Mokka for between £25-27k. While Vauxhall’s overall sales have declined, its retail share of the market has remained steady at 5.5-6%. The decline in sales came from cheap fleet deals that also armed residuals at the same time.
Under PSA (and now Stellantis), Vauxhall has taken the bold step to increase its pricing to head towards the brand it wanted to be, but without the overall product quality to support it. However, with the much-improved Corsa, Mokka, and Astra leading the charge of this new Vauxhall, the products have arrived and are performing well. Vauxhalls are now being bought for reasons other than simply being a cheap deal from a local dealer that always had availability.
Vauxhall’s wait times in retail sit at around 100 days, and closer to one year in the fleet market due to the popularity of its electric vans; before there were no wait times. “It’s unprecedented to go to the end of the month relying on logistics [to get cars registered], not pre-registered,” says Phil Douglass, Vauxhall’s marketing director. “People are now focused on getting cars from the port to retailers, not distress selling.”
Vauxhall design boss Mark Adams describes PSA’s takeover as “well timed” as it “allowed us to rethink Vauxhall and what we stand for. It started with the designs [including the firm’s new Vizor grille] but we’re now executing the whole brand to customers in a consistent way, with dealerships and all customer exposures all very different to the past”.
Under General Motors ownership, Vauxhall was tied in with Buick, its architectures having to work on cars sold in the wildly different markets of the US and China. That made Vauxhall “do things we didn’t want to do”, says Adams, in contrast to being with PSA, “a well-run, European-focused group that got us healthy quickly and gave us a European toolbox to work from. It allowed us to be true to what we wanted to be”.
Vauxhall has abandoned its jingoistic Rule Britannia campaign and branding and instead focused on three new brand pillars: progressive Britishness, detox, and ‘greenovation’. The former relates more to tying Vauxhall to the more outward-looking, innovative side of Britain; detox refers to the firm simplifying its trim levels, communications, and even the model range; greenovation is about ensuring the firm is seen as a leader in EVs as part of its plans to go EV only by 2028. In April, it had almost 10% of the UK BEV market, including vans, to take the number one position.
Vauxhall is not there yet in being the brand it wants to be: much of its success has come with younger and older buyers, increasing its appeal to 25 to 45 year old buyers is therefore the obvious opportunity, says Douglass.
Secondary Headers:
Vauxhall’s Transformation Under PSA and Stellantis
Vauxhall’s Upmarket Pricing Strategy
Vauxhall’s New Brand Pillars
Vauxhall’s Focus on EVs
Vauxhall’s Appeal to Younger Buyers
Vauxhall’s Transformation Under PSA and Stellantis
Since becoming part of PSA in 2017 and now Stellantis, Vauxhall has undergone a significant transformation. The company has shifted its focus towards an upmarket pricing strategy and a positive brand image. Under PSA, Vauxhall took the bold step to increase its pricing to head towards the brand it wanted to be, but without the overall product quality to support it. However, with the much-improved Corsa, Mokka, and Astra leading the charge of this new Vauxhall, the products have arrived and are performing well.
Vauxhall’s Upmarket Pricing Strategy
For much of its recent past, Vauxhall seemed forever trapped in a cycle of discounting its cars and distress selling at the end of the month. However, under PSA (and now Stellantis), Vauxhall has taken the bold step to increase its pricing to head towards the brand it wanted to be. The average price of its cars sold has increased by 2.3% in the year to date, with an expected increase of 2.5-3% by the end of the year.
Vauxhall’s New Brand Pillars
Under PSA, Vauxhall abandoned its jingoistic Rule Britannia campaign and branding and instead focused on three new brand pillars: progressive Britishness, detox, and ‘greenovation’. The former relates more to tying Vauxhall to the more outward-looking, innovative side of Britain; detox refers to the firm simplifying its trim levels, communications, and even the model range; greenovation is about ensuring the firm is seen as a leader in EVs as part of its plans to go EV only by 2028.
Vauxhall’s Focus on EVs
Vauxhall’s focus on EVs is part of its plans to go EV only by 2028. In April, it had almost 10% of the UK BEV market, including vans, to take the number one position. Vauxhall’s popularity in the fleet market has also increased due to the popularity of its electric vans, with wait times closer to one year.
Vauxhall’s Appeal to Younger Buyers
Much of Vauxhall’s success has come with younger and older buyers, but increasing its appeal to 25 to 45 year old buyers is the obvious opportunity, says Phil Douglass, Vauxhall’s marketing director. Vauxhall’s new brand pillars and focus on EVs may help attract younger buyers who are more environmentally conscious and interested in innovative technology.
In conclusion, Vauxhall has undergone a significant transformation under PSA and Stellantis. The company has shifted its focus towards an upmarket pricing strategy and a positive brand image, with much-improved products leading the charge. Vauxhall’s new brand pillars and focus on EVs may help attract younger buyers and solidify its position as a leader in the automotive industry.