Stereotypically, the new owners, Magna International, will be searching for cost cutting exercises.
An immediate re-brand would involve resource at a difficult time. That isn't to say however that a re-brand wouldn't be a future strategy for adding value to the business. But it's a big decision, not a snap decision.
The Vauxhall brand has a strong manufacturing heritage in the UK, with the first car emerging back in 1903. However, since the 1970's the majority of Vauxhall models have been based on those produced by Opel in Germany. The car models are the same; as is the advertising. The model names are even the same, so we're used to seeing the Vauxhall Astra in the UK and the Astra under the Opel brand in the rest of Europe.
The only real difference is the badge. With the rest of Europe operating under the Opel name you could argue that we have become quite accustomed to the name. If we're feeling pro-Europe you may even question why we still operate under a different moniker in the UK market.
The other factor to consider is that despite the brand's long standing heritage in the UK there doesn't appear to be an overtly strong emotional connection between the brand and its customer. This could point towards a weakness that could benefit from a fresh approach to branding. Car brands should have a strong emotional connection with their drivers. If you think about brands like BMW, there is a strong affiliation and resonance with being a loyal BMW driver. Even troubled brands like Ford still have a strong connection in their US heartland. By comparison Vauxhall does not seem to have that same bond with its audience. Would anyone really care if it switched to Opel?
So while the debate of re-branding now may not be top-of-mind for the new owners, it will be important as they consider the longer term implications and how to build value into their investment. The degree to which the cost savings of not re-branding outweigh the expense of managing the separate Vauxhall brand in the UK market and the potential value of what the brand could become should all be considered.
Who knows what Magna have up their sleeves, but there may also be an opportunity to reinvigorate the brand on a European wide basis. A re-brand should never simply be a re-badging exercise, so once the dust has settled from this recent deal, Magna will be in a better position to ensure that their vision and business strategy is correctly played out in the brand strategy, whatever that may be.
Graham Hales is Managing Director of Interbrand