Saab GB head honcho, Jonathon Nash, recently did a rather long interview at Just-Auto (reg req’d) where he goes to great lengths to emphasise that GM are very committed to developing Cadillac as a global luxury player.
I should mention that he’s also the Cadillac head honcho for the UK. And the Hummer head honcho. And Corvette, too, I believe. Anyway, some Cadillac confirmation:
….This move has coincided with a determined effort by GM to really put Cadillac on the map globally…..
….for GM to be able to say this is a global premium brand along the lines of Mercedes-Benz, they had quite a lot of work to do…..
….lots of things that indicate GM is very serious about going global with Cadillac.”
….We’ll be helped by the fact that there is this absolute determination at GM to make Cadillac a global brand which means they will bring product to market quickly which will help me match to product requirements.
OK, we get it.
There’s a lot of talk there. Talk about the analysis they did when the last arrangements with Kroymans failed. Talk about how they didn’t point the finger of blame at anyone (I suspect it was mainly because the finger would have pointed back at Detroit, and they NEVER make a mistake there). Talk about how they’re going to learn from the Saab experience of managing a small brand. Talk about how they’ll be small enough to be personal where BMW and Audi can’t.
Can I just mention something that some management type guy emphasised some time ago, probably in another industry but relevant as all heck right here.
IT’S THE PRODUCT, STUPID!
The product is basically the CTS when it comes in RHD, and when it comes with a new diesel. There’s also the industry-proven BLS, which hasn’t proved itself to be any good, but has provided proof GM’s commitment to Caddy in Europe regardless of what common sense, the market or even my dog might tell them. There’s the STS which is really old and the Escalade which is limited by being LHD only. In short, it’s a fleet of luxobarges in a country where entry to the capital is controlled by a bloke named Red Ken.
Extreme luxury will work in small quantities, but Cadillac isn’t extreme luxury. And what’s more, the overwhelming evidence points to the fact that it’s not wanted, needed, desired or barely even thought of outside of GM walls.
Cadillac are going to try and sell 500 units this year. They’re hoping that they can lift to sell 5,000 units a year in 5 years time.
These modest targets are, of course, revised from the five-figures-by-2010 targets that were set and missed by a wide margin (4.5 out of 5 figures) previously. This was when GM were in partnership with Kroymans, a Dutch distributor who were contracted to sell Cadillac and Hummer in the UK a few years ago.
Kroymans spent big on real-estate for the venture and were planning on 15 dealerships at a cost of around $5 million each when the plug was pulled. How much do you think it cost GM to cancel that contract.
No sales, big costs, and still no appreciable market recognition for Cadillac in the UK, or in the rest of Europe for that matter.
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If there’s a silver lining in this deity-sized cumulonimbus it reads as if they’re intent on pitting Caddies up against bigger BMW’s in Europe. There’s numerous references to the 5-series and bigger Mercedes Benzes.
Theoretically that would leave Saab to duke it out with the 3-series, but I don’t trust that that will be the case whatsoever, not with the CTS being the poster-child for all things Caddy in the foreseeable future.
If Saab could get just half of the seed and development money GM wasted on Cadillac in the last five years it would have made well and truly more than 5,000 units difference.
/rant…..
…for today, at least.