Sometime in the future, Cadillac global marketing boss Uwe Ellinghaus believes Cadillac could enter the Australian market, being able to “easily flourish” under the proper conditions established on top of the goodwill the brand already has in the country.
Auto Advice reports however the main goal for Cadillac is to go after what Ellinghaus calls “low-hanging fruit” markets:
We see the opportunity [in Australia] and we want to expand into as many markets as we can afford, but it’s also fair to say we have so much growth potential unexploited in China, even in the US, Canada, Russia, Dubai, Mexico… This is the lower-hanging fruit.
We have limited resources and great opportunities elsewhere that we need to make a very careful plan when to enter which market.
Regarding where Cadillac could enter the Australian market, he says the space soon to be vacated by the Holden Commodore would be the perfect point of entry. Offering the brand for Commodore prices, though, would be easier said than done as far as a business case is concerned, pointing toward both the BMW M Series and Mercedes AMG as to where pricing would occur for Cadillac’s high-performance lineup. He also had high hopes for the CTS, and the SRX and Escalade, with the latter two finding huge success in Australian burgeoning SUV marketplace.
As for when Cadillac would enter the scene, Ellinghaus says an introduction would occur near the end of the 2010s at the earliest, and would be headed by one or two models converted to right-hand drive. This follows an near-entry into the market back in 2008 before turning back at the last moment, though not before exporting a few vehicles and appointing dealers to sell them.
They could serve a shrinking niche, but pricing critical. Flourish is likely overstating things to say the least. Opel failed.
Man does that logo look strange without the wreath around it….
Looks kind of ugly to me.
Yeah, it’s just too big.
Hahahahahahaahhahahhahaahahahahahahahaahahahahhaahah.
Ahahaha.
Yes absolutely hilarious the “Redneck Rolls Royce” even has a limited following in NA. if this example of Barras leadership GM is in serious trouble.
I was under the impression that the only ones left buying Commodores and Falcons were die-hard, brand loyal fanboys. If that’s true, how would you get them to switch their allegiance to Cadillac? Even with no more Commodores and Falcons that seems like a bit of a stretch.
A lot of Falcon and Commodore sales are to fleet. Many of those domestic fleet sales have been driven by buy-domestic efforts.
The imports will alienate some of the Aussie bogans and the fleet buyers, the latter of whom will just downsize into something cheaper if there are no domestic alternatives. There won’t be many buyers to switch.
Seems to me the Caddy image should speak pretty nicely to Australian luxury buyers. It may take time, but I think the brand should do well there, particularly since the first cars being introduced are damn nice ones.
@FreedMike
Australia, per capita are the largest buyers globally of performance vehicles.
So, there is money here for prestige and luxury marques.
Many Australians don’t consider any vehicles out of NA as prestige or luxury.
Why should we? We have had GM, Ford and even Chrysler here mainly with sixes and V8s for years.
Even a Holden Caprice or Ford Fairlane was considered a very nice ‘normal’ vehicle, not a luxury vehicle.
How could they be anything other than normal? They where just lengthened Falcons and Commodores.
There, there Ellinghaus. Calm down. Akerson has left the building. Your $50 expensed breakfasts are safe and you can face the world as a rational human being again.
A Caddy in Australia? Who’s came up with that ridiculous idea.
First is need 4 doors as even the Holden Monaro didn’t sell that well.
As a niche, it would be a very, very small niche.
What would you rather have, a BMW, Audi, Mercedes Benz, even a Volvo or Skoda rather than a Caddy.
GM will be wasting their money.
You didn’t push for a diesel Escalade pickup?
Man, what’s up with you? :)
@FreedMike
I would like the US body and interior in our Colorado. But I bet that’ll happen anyway.
For pickups, I would want a Cummins powered Navara and Titan.
Oh yeah.
I’m sure a chromed-out Escalade would feel right at home along side various Land Rovers, Land Cruisers, Patrols, and Galaendawagons. Especially in the outback.
The Escalade has a lot to offer the Australians.
@raresleeper
If the Escalade came in diesel and was as capable off road as a Patrol or Cruiser it would sell.
But GM’s Suburban was a flop here quite recently, so I don’t think an Escalade would even be looked at.
Skoda? That should be the Dacia of Volkswagen.
Also, is it smart to enter a luxury car brand in a market that will increase car taxes significant.
@charly
Your comment shows what little you do know about what’s on offer.
The Skoda Superb Wagon actually received the Prestige Car of the year award. It’s quality was reported to be as good as any other VW prestige product.
It runs an AWD system with a VW 3.5 litre V6. The only thing wrong with it was the fugly grille.
Who the hell publicly calls their prospective luxury customers “lower-hanging fruit”?
Nissan calls even its Datsun target market “risers”.
I thought the same thing. It’s so arrogant, implying these customers will be easy targets.
Maybe they should test the Australian waters with the ELR.
Maybe this is why he’s a *former* BMW marketing exec.
But I could be wrong and the deep savvy he had earlier honed selling $400 ink pens to global literature majors was simply not sufficiently challenged at the propeller place.
Kenmore, I think you have the order wrong. He was a “Former BMW” exec (and lets be fair, he was a chair-warmer while an exec, not really chosen for the position…) when he went to Mont Blanc.
Now, at Cadillac, he’s a “Former Fancy-Pen Marketing” exec. BMW->MontBlanc->Caddy.
Seriously, he’s got to have pictures of someone important doing something very embarrassing – I figured he’d be out the door with the change at the top – the GM post might turn out to be his longest exec tenure yet!
Maybe this is why he’s a *former* BMW marketing exec.
But I could be wrong and the deep savvy he had earlier honed selling $400 ink pens to global literature majors was just not sufficiently challenged at the propeller place.
I guess it could be worse…they could be UNDESCENDED customers.
Ich habe nur EINEN Hodenhochstand, danke SEHR.
Kliest! Befehl!
I’d highly doubt that the Escalade would sell in Australia, too big and thirsty, we only like V8’s with performace down under. Looking at the sales of the Suburban when they were sold her in the 90’s, and the F-150, i’d say it’d fail.
Looking at Apple Computer sales in the 90’s I’d say they will fail.
Sure, but Apple reinvented itself. GM only borrowed their reality-distortion device.
Whatever the final outcome I think bankruptcy is quite a reinvention, and the new Escalade is one BAMF.
On that, bankruptcy was more of a reincarnation than a reinvention. The average GM car is not much appealing than before, and the whole global Cadillac Chevrolet shenanigans just shows they just can’t get real. Apple really made things different, whereas GM did not.
Ellinghaus seems optimistic that most Australians won’t be sore about GM shuttering operations in the country and will be happy to buy imported cars from that same company that will cost a lot more than the cars that used to be built there.
I agree. Cadillac would have to be selling something very compelling to even be taken seriously, which they are not.
I know the economics could never work, but it’s shame they couldn’t build or partially assemble these (i.e., CKD kits) over there. It could bring back at least some of the automobile industry there and probably allow Cadillac to avoid the import duties that add significantly to the price of foreign manufactured luxury cars — which they could use to undercut their competition. If their goal is to bring these to Europe, it could also build RHD versions for other markets.
There is a free trade agreement between the US and Australia. No tariffs, therefore no need for knockdown kits.
Except Cadillacs do not come in RHD. All of their potential competition does.
Who say that GMs offerings won’t come in RHD? I thought all of GMs new platforms were “world cars” from their earliest design definitions.
@carcrazylarry,
The “World Cars” Corvette and Cadillac are not in RHD
“Uwe Ellinghaus, Cadillac’s global chief marketing officer, wants Cadillac in the next five to 10 years to add vehicles with diesel engines that will help sell Cadillacs in Europe. ***Right-hand drive vehicles will help break into the Australian and United Kingdom markets.***”
http://www.detroitnews.com/article/20140212/AUTO0103/302120021
Right-hand drive is obviously part of the plan. If they’re going to make them for the UK, then they may as well make a few more for the Aussies.
““Uwe Ellinghaus, Cadillac’s global chief marketing officer, wants Cadillac in the next five to 10 years to add vehicles with diesel engines that will help sell Cadillacs in Europe. ***Right-hand drive vehicles will help break into the Australian and United Kingdom markets.**
They sold a massive 600 all up in Europe in the “good years” Yes Cadillac and Corvette are not RHD.Europe is LHD/RHD “Next Ten Years” Wow, will GM or Cadillac be around then. This “Ewe Ellinhaus” is someone that VW and Toyota think GM should retain.
Oh my God, I laughed so hard! Ellinghaus, a guy in your position is supposed to make the Kool-aid, not drink it! As delusional as anything uttered by any crackpot politician. “low hanging fruit?” again I am laughing my butt off. There is no more low hanging fruit left, there is only the smallest, most hidden, hardest to get to fruit. Like trying to pick raspberries in late August, you have to dig deep and take a lot of thorns. What a huge idiot. I really should get my MBA, this looks too easy.
The Aussies don’t buy many cars in comparison to the US. (They can’t — the population is much lower.)
The top luxury brand in Australia last year was Mercedes, and it sold about 28k units. Even if Cadillac could match that (and good luck with that), that doesn’t amount to a lot of cars.
GM’s strategy for saving Cadillac with globalization is a poor one. It’s probably too late to use the brand to compete directly with the Germans; there is too much competition and not enough momentum. (Ford’s plan with Lincoln is less exciting but more prudent.)
Aren’t Cadillacs fairly popular in China and the Middle East?
I don’t have exact numbers for China, but I think that Cadillac sales average about 5k units per month, give or take.
Thank you.
They have blown it completely. They need to make the Brand the most dominant Luxury Brand in NA before trying other markets.
It used to be somewhat the top of the heap, long before many of us were born.
The only people that I know who now want to buy a Cadillac are those who are too poor to ever buy one. There are too many better options out there for those with the wherewithal, and Cadillac is, and has been, an also-ran for several decades.
I wonder how long those 22-inch ‘bling’ Escalade wheels would last during a trip into the Outback?
@RHD,
The “Redneck Rolls Royce”
Hmmm rwd 2door v8 sedan? I wonder if he’s looked at why the local product is slowly going under down under? 4 door rwd v8 sedans aren’t exactly leaping of the sales room floor.
His next burst of brilliance will be to export Buick Park Avenues from China to Australia, we’ll never notice the resemblance :)
Seriously GM as a brand is going to be treated like a leper in the enthusiast community. Even Volvo is making a push to these people. Check out the Polestar S60 in the v8 Supercar, fastest in it’s debut race.
The last lap by the young kid (forgot his name) was fantastic racing.
A few “GM’s Greatest Hits” dealers selling Camaros, Corvettes, 2500HD Diesel Sierra Denalis, Escalades, and CTS (+V) could probably do quite well in the small volume market.
I like this plan, it’s so crazy it might just work. Welcome back to the fight GM.
Actually, I think this is a decent idea. Why not? My perception of Aussies is that they like their expensive cars big and brash, and Caddy fits that well.
Selling a few thousand cars per year with the steering wheel on the wrong side is not going to save Cadillac.
And these days, Aussie luxury tastes are moving toward the Europeans. (In other words, they’re just like everybody else.)
Who said the cars would be LHD?
Our wrong side, not theirs.
Moving toward the Europeans as of late?
We’ve been that way for as long as I’ve known.
What luxury marques does the US have that can compare to a Euro prestige or luxury marque over the past 4 decades?
Cadillac
No seriously what luxury marque does GM have that competes against MB, which are still highly regarded in OZ, Audi, BMW, to a lesser extant Jaguar. The Cadillac will be looked at as a different shaped Commodore or a bigger Malibu. And the Malibu is not exactly setting the sales charts on fire either. Personally I think GM would be better reviving OPEL in Australia, seeing that they prefer to keep that basket case going instead of Holden. The European Astra was well regarded as opposed to the Daewoo versions.
@pacificpom2
I think the US has a slightly different perspective on what denotes luxury and prestige.
Some in the US mentality appear to be ‘Upgrade’ or ‘supersizing’ is more luxury.
To them it appears bling and leather makes a prestige or luxury car.
To us, it is the complete vehicle design and package. Refinement across all areas, ie, suspension, drivetrain, interior, etc.
We don’t consider a ute with leather and all of the bling a luxury vehicle. Why? Because it the same as the $24k base vehicle.
No ‘blinged’ $24k vehicle could ever be deemed prestige, let alone luxury.
@crazycarlarry
Cadillac is only prestige in the US nowhere else.
US manufactured vehicles are not viewed as quality and reliable vehicles globally. Japanese, Korean and European vehicles are highly regarded as better quality.
Cadillac will not sell in Australia.
@ big Al
You say
“US manufactured vehicles are not viewed as quality and reliable vehicles globally. Japanese, Korean and European vehicles are highly regarded as better quality.”
Mercedes Benz, BMW, VW, Honda, Acura, Toyota, Nissan, Hyundai, Subaru, along with GM, Ford, FCA, Tesla all make highly regarded quality cars here in the USA.
@crazycarlarry
What?
US made vehicles are mainly considered good, by US people.
US manufactured GM, Ford and Telsa are only considered good in the US.
The US has a perceived quality issue outside of the US.
Even BMW doesn’t highlight the fact that some of their vehicles are US manufactured.
Toyota, with the Kluger (Highlander) doesn’t advertise the fact they are from the US.
This would be negative advertising for the companies.
Travel around the world, you’ll find European, Japanese and even Korean vehicles are considered better than US vehicles. Whether true or not this is due to years of neglect by the US Big Three in quality and innovation.
Similar to the Japanese and Koreans auto industry the US is starting from a lower base than should be warranted.
You forget Chinese. I think that if you ask the average European or Australian if Chinese cars are better than American they would answer:”No, but in 5 years they will end the price is much better)
ps Tesla is electric. It is much easier to make a good quality electric car.
This could work, but like someone said before, best case scenario of killing Mercedes and taking all 28K sales is still a rather low volume of cars.
They are not going for profit right now, they just need to get their name out there in the world, and hopefully get some some test drives in and increase demand.
I think GM really needs to find a single global identity, but since thats never worked I would make every model made be able to be any badge as necessary on demand.
I doubt it. With the latest air-bag debacle, word is getting around that the new GM is even worse than the old one. But GM doesn’t negotiate with terrorists, and by terrorists they mean customers.
@Pig Iron
Agree I thought Acherson or whatever his name was bad, but this Mary Barra is making him look like a genius in comparison.
What has she done that makes you say that?
Allowing the idiotic statement from her management team to get traction, that is the basis of this thread and Pig Irons beef with the current management.
Wow harsh, I thought it was only a trial balloon.
“Wow harsh, I thought it was only a trial balloon.”
Best said in front of other management, rather than the general public.
Pig Iron, I agree with your assessment, harsh as it may be.
Many of us who owned GM products over the past decades suspected that the bailouts, handouts and nationalization were only a ruse to put lipstick on this pig (no pun intended) and are now wondering if a lonely voice at the DOT will be heard yelling from the lectern, “We’re not done with GM yet!!!”
Some people have called me out for saying that I think that GM made crap cars in the past, does so now, and will continue to do so in the future.
I forgive them for they know not what they are talking about because I have been there and done that. I lived my life in GM fashion, car wise. I choose not to do that again. Back then I could not afford better. Now I can.
I do not believe for a moment that Aussies are so gullible that they would choose to buy a Cadillac product when in their market they have the best cars on the planet to choose from.
Maybe some of ttac’s B&B from down-under should chime in on this.
I will HDC..
Cadillac 2008 aborted launch
Saab 2012
Opel 2013
QED
I’m not sure what else there is say.
@HighDesertCat
Cadillac is mentioned as much as in Australia as Trabant is in the US.The reaction is about the same.
mr_min, RobertRyan: gentlemen, I suspected as much but since I live in the US it was not my place to say what you wrote.
Thanks for reading and responding.
Easy.
Reboot croc dundee & oz rules with Cadillac and get Tony to lift the ban on hunting salties.
There you go.