Cadillac Owners Forum banner

1 - 7 of 7 Posts

·
Registered
Joined
·
7,237 Posts
Discussion Starter #1
Cadillac plans European car to fight German rivals

Reuters / August 21, 2003DETROIT (Reuters) -- Cadillac, General Motors' luxury brand, is considering building a mid-sized car in Europe to compete in the heart of the market against its German competitors, a Cadillac official said.

The model would be smaller than the Cadillac CTS sedan, and about the same size as the BMW 3 series and the Mercedes C class, said John Howell, Cadillac's director of global brand development.

"We need to be competitive with the lower end of our main competitors, but we don't want to go down into the compact and subcompact classes," Howell told Reuters. "We might be willing to do a vehicle, an entry-luxury vehicle."

Reuters spoke to Howell on Wednesday and last week.

The vehicle, part of Cadillac's renewed expansion into Europe, the world's largest market for luxury brand vehicles, could arrive in two to three years, Howell said.

One factor for building in Europe is a 10 percent duty on vehicles imported from the United States, Howell said. Cadillac also could take advantage of Europe's trade agreements to export to other countries, including back to the United States, he said.

Cadillac sells the American-made CTS and larger Seville sedans in Europe. But Europeans complained that the Seville, launched in 1998, was too large for the roads, and tuned for a soft ride on America's rough highways. GM stopped selling a right-hand-drive version of the Seville in Britain several years ago.

"The Seville was an American car designed for the American market," said Bruce Harrison, a consultant with the Automotive Group of automotive advisors Global Insight.

Through June, Cadillac sold just 107 Sevilles in Europe, Cadillac spokesman Kerry Christopher said.

The CTS, which went on sale last year, was partially engineered in Germany and has received positive reviews in Europe. But its sales through June totaled just 284 in Europe.

MORE DEALERSHIPS, CARS

Cadillac's limited lineup and low profile in Europe has also been a hurdle to sales. Cadillacs are grouped with mainstream Opel vehicles at select Opel dealerships across Europe. The Cadillacs are often forgotten at the back.

In late June, Cadillac appointed the Dutch car dealership group Kroymans Corp. B.V. to spearhead an effort to build 25 Cadillac Experience Centers in major cities across Europe. Cadillac expects the new, large dealerships will raise its recognition across the continent.

Cadillac will also expand the lineup with the SRX mid-sized SUV and the XLR roadster next year, followed by the next-generation Seville, to be called the STS, in late 2004 or early 2005. The Corvette sports car will also be included at the new Cadillac dealerships.

The strengthening euro had made importing some of those vehicles from the United States more attractive, Howell said. "We've definitely swung from a marginal business case situation to a very profitable business case."

Europeans have also complained that Cadillac's big V-8 engines guzzle too much gas. But the CTS and the SRX both have six-cylinder engines, and a four-cylinder could be in a future vehicle, Howell said. Cadillac will also add diesel engines, which are in more than 40 percent of new cars in Europe, in three to five years, he said.

With the additional vehicles, Cadillac sales are expected to grow to more than a few thousand a year, Howell said without giving specifics. "It's not the kind of thing where we're going to do a couple thousand, which has been our history," he said.
 

·
I'm a Cadillac Fanatic!
Joined
·
9,575 Posts
Why does America have such rough highways? What do we suck? What's the matter?!

Anyways.. Here comes a new Cimarron. :D You never know.. Do you think this new entry car would be sold here as well? I think it could work out well.. There should be something like the Catera was - a low-price entry-level Cadillac.. Not everybody can afford payments on a $40k vehicle..

I hope the Seville doesn't shrink because of this European outlook on how it's too big...
 

·
Registered
Joined
·
7,237 Posts
Discussion Starter #3
Sal Collaziano said:
Why does America have such rough highways? What do we suck? What's the matter?!
Special interest groups. We could require able bodied welfare/unemployment recipients to report to a public works program. But the unions would be first of many special interest groups to complain.

We have plenty of money, we just don't spend it wisely.
 

·
Watching the Watchers
Joined
·
5,959 Posts
Sal Collaziano said:
.. Do you think this new entry car would be sold here as well? I think it could work out well.. There should be something like the Catera was - a low-price entry-level Cadillac.. Not everybody can afford payments on a $40k vehicle..
Cadillac and GM have stated several times that Cadillac will NOT move down-market to follow BMW and MB. Lutz himself said the CTS will be the cheapest Cadillac available. As far as everybody not being able to afford $40k+, that I think is the point. If I were running GM I'd have every Cadillac priced 45k+, let Buick build 35-45k cars, Pontiac 29-35k and leave Chevy(except the vette) to build cars less than 29k.
 

·
Registered
Joined
·
522 Posts
And - if Cadillac starts made small cars - its IMO kills this brand image.
Just think, what happend to Jaguar - diesel and STW :farting: luxury car, my ass :mad: - just like Ford Mondeo (Contour in US?)
 

·
Registered
Joined
·
109 Posts
If Cadillac puts a diesel in their European cars, then that will surely be the death of Cadillac in the EU. Diesel Cadillacs in the past were real POS! IMO they were the worst Cadillacs ever built. GM really had their heads up their you know whats when the converted a gas engine to diesel.
 
1 - 7 of 7 Posts
About this Discussion
6 Replies
5 Participants
Liseckas
Top