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The Opel car brand is to shut down its operations in Australia.

The company said in order to be competitive in the local car market it would need to cut prices significantly on its core models.

“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 company said.

Opel said it was working closely with employees, dealers and suppliers on the closure process.

It currently operates through a network of 20 dedicated dealers serviced by a head office staff of 15.

“As always, customers are of the highest priority and Opel Australia will remain in close contact with them, to ensure all on-going obligations to these customers are met,” the company said.

The German GM subsidiary sold 541 vehicles in Australia in 2012 and 989 to the end of June this year.

It will now work with Holden on the potential to sell some cars in Australia with Holden badges.

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