The launch of Cadillac in right hand drive Australia has been delayed indefinitely.

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General Motors’ ‘down under’ unit Holden announced the decision on Thursday.


Chairman and managing director Mark Reuss said: “With the downturn of the Australian automotive market and the broader global financial situation, we have made a common-sense, commercially responsible decision to not introduce a new brand into the exceptionally challenging Australian market at this time.


“GM Holden was faced with making a significant investment to launch a new, niche brand into a tough market.


“There is only one chance to properly launch this brand in Australia and in these challenging times, we believe we couldn’t give it the best chance of success.

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“This was a difficult decision but the only viable decision.


“There is no doubt the Cadillac CTS is a magnificent vehicle and the response since it was revealed at the Australian international motor show in October 2008 has been very positive.


“But obviously since then the market for new cars has continued to deteriorate, the challenging broader economic environment remains largely unchanged and the exchange rate has worsened for imports.


He said Holden would for now focus on developing alternative fuel technologies, and building a second car line at its Elizabeth, South Australia, plant to make a new fuel-efficient four-cylinder small car plus future generation Commodores.


Premium brands, Saab and Hummer, would “continue to focus on sales and planning for future introductions of new models” in Australia, Reuss said.