“I do think that it is a market that’s evolving,” he said. “I do think the per-capita income is increasing, I do think the middle class is growing, so this is an attractive market.”
The General is embarking on an aggressive plan to significantly increase the profitability of its South American operations, with a plan to introduce seven new models to the region within 12 months. In addition, the automaker introduced Opel to Chjle this year in a bid to expand its Germany-based subsidiary, bucking criticism that Opel’s Europe-only presence limits the brand’s scale.
According to Chevrolet marketing director for Brazil Gustavo Colossi, the average transaction price of GM’s new (Chevrolet) vehicles in Brazil has increased by as much as 20 percent compared to their predecessors. “The organization does very well when it focuses on execution”, so “If they are going to invest that much effort into proliferation, they should look at an additional brand.”
Cadillac’s main competitors, including BMW, Audi, and Mercedes-Benz all have an official presence across South America.
The GM Authority Take
Introducing Cadillac to markets where the brand can sell enough units to earn a profit carries several benefits for GM, including higher profitability for GM itself, align with increased capacity utilization at the North American plants where the Cadillacs will likely be produced. What’s more, the luxury auto market is usually significantly more resilient to changes in the economic environment — so if/when the economy of any South American country heads south and takes Chevy sales with it, Cadillac customers should keep humming along just fine.
Whenever GM does get around to introducing Cadillac to South America, we have a feeling that the first model to hit the shores will be the new ATS — wouldn’t you agree?