At last week’s Sao Paulo Auto Show, General Motors CEO Dan Akerson told reporters that the automaker may introduce the Cadillac brand to South America.
“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 ATSÂ — wouldn’t you agree?
Comments
Alex, I looked at ATS again today…black base model…sat inside…was very impressed with the black dash…lights up very nicely with the blue glow that is in Buick….lovely brushed bronze metal…..Not sure how I feel about the vinyl seating…nice but does not feel luxurious. I love the lines of the car and the Cadillac crest looks at home…..still thinking about one 🙂
My gut tells me this will happen sooner then later..,
One of the biggest hurdles that Cadillac has across the world is the perception that they still build cheesy 70s era land boats. That hasn’t been the case for a very long time, but that’s how people feel. I think the best way to change that perception is to get out there with their display stunt team and put some cars on some tracks in one-make or a few Touring Car series…preferably ones where BMW and Mercedes are also competing…The ATS would be brilliant for this duty…