Comments on: Can Cadillac succeed in Europe? http://autoperspectives.com/blog/2010/03/09/can-cadillac-succeed-in-europe/ Building and re-building great automotive brands. Thu, 02 Sep 2010 22:52:41 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: Cameron http://autoperspectives.com/blog/2010/03/09/can-cadillac-succeed-in-europe/comment-page-1/#comment-341 Cameron Wed, 17 Mar 2010 14:25:55 +0000 http://autoperspectives.com/blog/?p=501#comment-341 Julian, thanks so much for weighing in so thoughtfully. I agree with virtually every point you make which is why I think Cadillac must keep its volume aspirations in check. I would hope that engines from Opel would be a possibility (although I have no idea if technically that would be difficult/expensive). The distribution network is critical and the press I've read indicates that it is in place, if not, then that's a whole different kettle of fish. Julian, thanks so much for weighing in so thoughtfully. I agree with virtually every point you make which is why I think Cadillac must keep its volume aspirations in check. I would hope that engines from Opel would be a possibility (although I have no idea if technically that would be difficult/expensive). The distribution network is critical and the press I’ve read indicates that it is in place, if not, then that’s a whole different kettle of fish.

]]> By: Julian Lea (London, UK) http://autoperspectives.com/blog/2010/03/09/can-cadillac-succeed-in-europe/comment-page-1/#comment-340 Julian Lea (London, UK) Wed, 17 Mar 2010 12:03:02 +0000 http://autoperspectives.com/blog/?p=501#comment-340 Cadillac will struggle in Europe. Sure, their designs are now very compelling, but they face huge challenges on a number of fronts: - Drivetrains: With EU emmissions regulations, over 80% of BMW 3 Series sold in Europe have engine displacements of 2L or less. This is similar for Audi A4 and Merc C Class. To have appropriate drivetrains to compete in Europe requires massive investment, which requires high sales volumes to justify. I don't think The General has the appetite for that scale of appetite for uncertain investment. - A legacy of failure in Europe: Customers who have previously bought Caddy's in Europe have been let down a number of times. Poor after-sales service, terrible residuals and dealers that are here today, gone tomorrow means that there is very little reason to trust again. - Distribution, distribution, distribution: Setting up a dealer network in Europe requires either a huge amount of manufacturer cash, or a promising business case to get retail partners to invest. They will struggle on both fronts here. Ask yourself a question - with your OWN hard-earned cash, would you open a Cadillac dealer in Europe. I don't think so. The product is unrecognisably better now and yes, the Cadillac brand does conjure up some nostalgic sentiment of bygone glory, but with European competitors at the top of their game (and continuing to improve), Cadillac success in Europe is a long shot - at very best. Cadillac will struggle in Europe. Sure, their designs are now very compelling, but they face huge challenges on a number of fronts:

- Drivetrains: With EU emmissions regulations, over 80% of BMW 3 Series sold in Europe have engine displacements of 2L or less. This is similar for Audi A4 and Merc C Class. To have appropriate drivetrains to compete in Europe requires massive investment, which requires high sales volumes to justify. I don’t think The General has the appetite for that scale of appetite for uncertain investment.

- A legacy of failure in Europe: Customers who have previously bought Caddy’s in Europe have been let down a number of times. Poor after-sales service, terrible residuals and dealers that are here today, gone tomorrow means that there is very little reason to trust again.

- Distribution, distribution, distribution: Setting up a dealer network in Europe requires either a huge amount of manufacturer cash, or a promising business case to get retail partners to invest. They will struggle on both fronts here. Ask yourself a question – with your OWN hard-earned cash, would you open a Cadillac dealer in Europe. I don’t think so.

The product is unrecognisably better now and yes, the Cadillac brand does conjure up some nostalgic sentiment of bygone glory, but with European competitors at the top of their game (and continuing to improve), Cadillac success in Europe is a long shot – at very best.

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