Cadillac is planning to try to re-establish itself in Europe yet again as part of its global expansion plans. The General Motors luxury brand’s CEO, Bob Ferguson, wants a return within three years.
Cadillac still sees Europe as the global capital for luxury-car sales, and believes it has to be involved if it is to have world-wide credibility.
It currently has 35 “stores” in the European Union, mainly in the north. Cadillac is currently inactive in Portugal, Spain and Norway, and has a mere token presence in the UK. Last year it sold less than 200,000 cars throughout the world, 75% of which were in America and 30,000 in China.
But under its Global Cadillac programme it wants to grow sales to unspecified levels and to more than treble business in China to 100,000 units a year. Europe is next on the list.
“We want a presence in Europe that is consistent and meaningful and with a portfolio that appeals,” said product director Hampden Tener. “The first sign of how serious we are was the appointment of Bob Ferguson as global vice-president. We have never had a global head of the Cadillac brand before.”
There is currently no timeline for when the return to Europe is likely to begin but Tener says Cadillac will begin “spooling up” its dealer networks and market presence “six months to a year before the first major product launch”.
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By GlobalDataInitially the return will be based on the new models recently introduced in America, the smallest of which is the ATS, a BMW 3 Series-sized saloon powered by a 2.0-litre four-cylinder turbo engine.
But Cadillac knows that to succeed in Europe it will need diesels, low-CO2 powertrains and right-hand drive – and also even smaller models.
“We have recognised an opportunity with smaller cars,” says Tener. “For Europe it jumps out. But at the same time we have to look at the Cadillac brand image. The higher segments are where we have got to start. But we know where to put money for the stage after that.”
Cadillac will not develop its own diesels but is likely to rely on Vauxhall-Opel, although General Motors’ agreements with Peugeot-Citroën offer another possibility.
“I would think we would do them internally through GM Europe,” said Tener. “We wouldn’t try to create a diesel powertrain in the US. It doesn’t make sense.”