October 15, 2009. Copyright 2009, Graphic News. All rights reserved

Ailing Opel-Vauxhall's New Astra Faces Tough Challenges
By Neil Winton

LONDON, October 15, Graphic News: Opel-Vauxhall couldn't have chosen a more difficult time to launch the new Astra, its most important car.

Car sales in Western Europe are suffering during the worst global economic recession in living memory, and are being kept afloat by government "cash for clunker" subsidies. Opel-Vauxhall, owned by General Motors, the massive American carmaker just emerging from bankruptcy, is in financial difficulty too. Opel-Vauxhall and its Saab sibling lost about 1.1 billion euros in 2008 and is expected to lose about twice as much in 2009. The company is being kept going by government loans, with Germany providing the most.

Negotiations to sell a majority stake in Opel-Vauxhall to Canada's Magna and its Russian partners are going down to the wire. A deal is expected in November. Opel has factories in Germany, Spain and Belgium, and the British brand Vauxhall is producing the new Astra for sale across Europe at its Ellesmere Port factory near Liverpool in the north-west of England.

The Astra family car, which competes head-on with the market-leading Volkswagen Golf, has been redesigned and now bears a strong styling resemblance to its bigger stable-mate, the Insignia.

The Astra has been priced about 600 euros below the Golf in Germany, starting at 15,900 euros, although the base price in Britain starts a bit higher at 15,675 pounds, which equates to 16,957 euros. This is probably because Britain's currency has been falling steadily against the euro.

Opel-Vauxhall said it has improved the quality of the Astra, which has a longer wheelbase and is wider than the old model. The interior is certainly much better than the outgoing car with high quality plastics, and much use of aluminium-like metal trimmings.

Opel-Vauxhall chief Carl-Peter Forster said the new Astra "radiates quality", when he unveiled the car at last month's Frankfurt Car Show, and the company said it will compete against premium products like the Audi A3, itself a more expensive version of the VW Golf.

"The Astra has typically been among the top three best-selling cars in Europe and it remains our ambition for it to stay there", Forster said.

Astra sales start in Germany in late November, then roll out across Europe in December.

The Astra is available with eight petrol and diesel engines from 1.4 to 2.0 litres. There are five different levels of trim. The first cars will be five-door hatchbacks. The most impressive engine is the 1.4 litre turbo petrol motor, which uses a sophisticated turbo-charger to produce 138hp. The earlier Astra needed a 1.8 litre engine to produce the same amount of power, and this technology points the way for car manufacturers, under pressure from governments to produce more power, more economically.

The Astra's new rear suspension improves handling, while its light weight and new design creates more cabin space. FlexRide uses computer power to change the car's handling to suit the driver's style.

Opel-Vauxhall wants the new Astra to help move it from being a brand which sold by competing on price, to one which will command premium prices and make higher profits. That's a tough call, and Opel-Vauxhall is not alone with that ambition.
/ENDS

Opel-Vauxhall Astra Exclusiv 1.4 Turbo
Engine -- 1.4 litre, 4-cylinder turbo
Power -- 138hp @ 4,900
Torque -- 200 Nm @ 1,850/4,900
Drive -- front-wheels
Gearbox -- six-speed manual
Acceleration -- 0-60mph-100km/h 9.0 seconds
Top speed -- 128 mph/205 km/h
Fuel consumption, claimed combined -- 47.9mpg-5.9 l/100km
C02 -- 139g/km
Suspension -- McPherson/Watts link
Length -- 4,419mm
Width -- 1,814mm
Height -- 1,510mm
Wheel-base -- 2,685mm
Boot capacity -- 370/1,235 litres
Price £17,290 (pounds)/€18,750 (euros)