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GM Keeping Cadillac In Europe

GM Keeping Cadillac In Europe

General Motors says it will continue selling Cadillac models in Europe, despite the fact the company has sold off the lion’s share of its European business to PSA Group. The news comes as little surprise given Cadillac’s distribution network in Europe is separate from the now sold off Opel, but it’s still a bit head-scratching.

Earlier today GM CEO Mary Barra confirmed GM’s plan is to continue selling Cadillac and the Chevrolet Camaro and Corvette in Europe.

“That is the plan at this time, to continue with those models and brands in Europe,” she told reporters and analysts during a conference call Monday morning. “We continue to grow the Cadillac brand. We’ll continue to do that in a very disciplined fashion.”

Cadillac has made multiple attempts to make inroads into the European premium market over the last two decades. To date the luxury brand has seen little in the way of success, which has been limited by a lack of distribution and the fact that Cadillac’s German rivals are the home team on the continent.

In 2016 Cadillac’s 45 dealerships in Europe sold only 781 cars. While a 33 percent increase over 2015, those numbers still pale in comparison to BMW and Mercedes-Benz, both of which sold in excess of 800,000 vehicles in Europe.

Cadillac’s most recent attempt at conquering the European market began to form in July 2014, when Cadillac President Johan de Nysschen announced plans to expand in Europe. Shortly after the lip service, Cadillac backed off expansion plans in Europe, stating they had pushed them back to “beyond 2020.”

As of today Cadillac sells the ATS, CTS, CT6, Escalade and XT5 in European markets. Cadillac dealerships also sell and service the Chevrolet Camaro and Corvette.

 





 

About Nick Saporito

AutoVerdict Senior Editor Nick Saporito began writing about cars at age 13. Nick ran a couple of automotive enthusiast sites for several years, before taking some time off to focus on his career and education. By day he's a marketing executive in the telecom world and by night he hangs out here at AV. You'll find him focusing on tech, design and the industry's future.
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  1. germeezy1
    From a 3700 lb convertible Z06 automatic to this decision I have begun to question if Mary has become quite contrary to rational thought. I say this partially in jest of course but only partially.
    member12
    They definitely see Chevrolet as more of a niche offering for now. Chevrolet is going to be performance cars only for a while.

    I still think that pulling Chevrolet out of Europe and shutting down the dealers in 2014 was a mistake, but that's done.
    Tone
    If GM felt the was profitable volume to be had in Europe, it would have kept Opel. Maybe there's a chance to build a profitable business on low volume, high margin cars that they already sell elsewhere anyway, but it seems like a tough road. I don't expect they will go back to Europe with volume Chevy's anytime soon. Again, if that's what they wanted to do, they could have done that through Opel with the advantage of a brand and dealer network. It would be cheaper and easier to have PSA rebadge GM cars in Europe and sell them as Opel's if they think they have a global product that can sell without a lot of changes.
    member12
    Great move. Cadillac, Corvette, and Camaro. They won't be huge sellers, but they will be distinctive "want" cars for enthusiasts that can afford them.

    Now IMO they need to set up showrooms and service departments in larger cities. Eventually when they push Chevrolet in Europe again (which they should), they can be more aggressive with expansion.
    megeebee
    arutherford
    Im sure selling less than the Ferrari 488 in Europe as a brand will really help their bottom line...


    Don't think it will hurt it either.

    Making Cadillac available is only smart and costs GM almost nothing, I suspect. Sales will continue to be small.
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