It’s no secret that General Motors is looking to grow its prestige-luxury brand, Cadillac, both at home and abroad. Currently, the brand has a direct presence in six global markets:
- United States
- Middle East
- EU and Russia (for the time being, Cadillac treats the two as a single unit)
Though Caddy’s current presence covers the lion’s share of the world’s luxury car sales volume, it does leave out a notable chunk, such as:
- Central and South America
- Australia and New Zealand
- South Africa
Luxury car buyers in those markets simply can’t buy a new Cadillac… at least not without importing the vehicle from another country, which is quite a costly, tedious, and (generally speaking) unrewarding endeavor. By comparison, Cadillac’s direct rivals, namely BMW, Audi, and Mercedes-Benz, each have a direct presence in the aforementioned markets, allowing (well-off) customers to purchase the German luxury car of their dreams from the comfort of a dealership. This makes Cadillac not a true global luxury car brand, thereby putting it at a disadvantage in terms of sales and image.
And this is when we begin to wonder which market(s) Cadillac should be pondering next. The brand has already stated that it will begin focusing on Europe, where its current presence is highly limited, in the vicinity of the year 2020. It’s worth noting that Cadillac has never taken an earnest approach in Europe, instead relying on haphazard efforts to import and sell a limited number of vehicles in the region through a minuscule dealer network. We’re hoping that Cadillac’s new leadership team, headed by ex-Audi exec Johan de Nysschen, will finally enact change in that area, and expand Cadillac to international markets.
From a business standpoint, expanding to new markets around the world is a sound strategy: it gives Cadillac the ability to sell vehicles in new markets, thereby growing global sales volume, revenue, and — if all goes well — profits. The expansion is especially vital given the upcoming onslaught of future Cadillac cars and crossovers that will push the brand into segments in which it traditionally hasn’t been present.
In addition, entering new markets will also elevate Cadillac to be a true global luxury car marque alongside Audi, BMW and Mercedes-Benz which, over time, should increase Cadillac’s image and cachet in new and existing markets.
Which markets do you think Cadillac should expand to next? Share your opinion in the comments section below.