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
- Canada
- Mexico
- China
- 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
- India
- 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.
The 2016 CT6 pushes Cadillac into a new vehicle segment
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.
Comments
Maybe Cadillac could start selling to the Goverment officials in Cuba . And then to whoever can afford one .
That is a market that seems to need new vehicles .
Cadillac needs to work on and increase dealership allocations where they are currently selling outside the States except for China. Cadillac is going in the right direction by adding diesels, smaller vehicles and RHD vehicles.
Whatever of the four continents/countries that have increase of wealth, Cadillac needs to go after those buyers.
Cadillac here in Spain can make his role with XT5 and more future crossovers will come.
If those cars first hard, have a safe sales; in Spain’s penchant for Crossover SUV, it is very high.
Then; introduces CTS and ATS; the ATS may sell very well too.
I’m excited to wanting to see Cadillacs sold in my country since 90’s
johnls_39 i agree
CT6 China model reviewed here
I think it should be Australia! If those people want rear wheel drive foor door cars then make them pay threw the nose for them!
I am tired of hearing the people of Australia cry about no rwd cars! So stop crying and open up your wallets
It’s not a factor of opening wallets. It’s more a factor of once the Commodore and Falcon are gone, there won’t be such thing as an AFFORDABLE new RWD car in Australia anymore, unless you want to buy a BMW 1 series, which I don’t know about you, but I sure as hell don’t! Come 2018 in Australia the only RWD cars will be from Lexus, BMW, Mercedes, Audi and the Hyundai Genesis which sells for a ludicrous price (think entry level 3 series money and you’d be close). At the moment you can get into a brand new FG X Falcon XR6 manual for under AU$40k drive away and a VF Commodore Evoke for similar money.
Cadillac sedans are boring
Purple Rain is the best Prince song.
””
The above statement has about as much to do with this discussion as your statement does. Yes we get it..you think the styling is ‘boring and slab-sided’
Cadillac should look at expanding to India and Brazil (South America). India has the potential to be the 3rd biggest auto market after China and the US. Brazil has a very good auto industry although currently in a free fall. When it rebounds it has very good potential. Prior to the current financial issues BMW and Mercedes had plans to put a manufacturing base in Brazil.
Perhaps Australia?
No point. They wouldn’t sell any. They said the same about the F series fifteen years ago and barely anyone bought them, simply because they were too expensive as you could get a 70 series Landcruiser for $20k less than the base F150, which could two just as much, came with a diesel engine and manual gearbox which in 4x4s here is more desireable, can tow just as much and spare parts were readily available.
Before Cadillac really thinks about becoming a more international brand of cars.. Cadillac needs to build cars with right handed steering to let the consumers feel that Cadillac has designed their car for them because one could imagine European cars not being as popular as they are if they were sold with right handed steering wheel only as the consumer would say while it may be a very good car, it’s just not worth the trouble and that’s the situation in a lot of places in the world.
Only the UK requires RHD in Europe.
Actually, they don’t. You can buy new cars in LHD quite legally in the UK, it’s just that some companies only sell you the RHD version over there.
Correct but those models sell in miniscule numbers.
And Cyprus and Malta, they also drive at the other side of the road ;).
Yes..
Add Grenada and Marritius to that list but hardly do I think those are potential hotbed of luxury car sales.
Australia and New Zealand , If Ford can sell nearly 10,000 Mustangs, ( now a 2 year waiting list ) then surely GM can sell a performance Sedan , albeit a luxury one What about the ATS , why cannot that be sold as well ? What about Government cars, now they are looking at BMW and Mercedes Benz luxury sedans ? What about the HC car business , ( Hire Cars ) to those who do not know, Huge business in Australia , in NZ they use Mercedes Benz , much cheaper. GM have to look at Right Hand Drive , for all their RWD platforms, Camaro has lost out now to the Mustang , BIG TIME. I also think India is a huge market , they are a very savvy automobile buyers. Shortly , Sedans are going to be in very short supply , and will generate their own new market. I was at a very public scenic place in Sydney today , and only 2 sedans in every 25 SUV’s ? I drive a late model E500 Mercedes Benz , as it costs less than half the price of a same year GM Caprice ( with less mileage ) the grand kids love it , and my good lady that sits in the passenger seat has no idea how fast I’m going ( when required )
The obvious next candidate is Japan. Cadillac already has a dealer network there and sells several hundred LHD cars per year. Start importing RHD cars, increase the dealership numbers and up marketing and you’ve got an easy entry into a huge market.
Australia, NZ, Singapore, India and South Africa can then leverage the RHD models, but the cost of entry into those countries will be higher since there are no existing dealership networks, no Caddy website, parts infrastructure, the brand is unknown etc etc so each would have to be tacked individually, say in 6 month or yearly intervals as Cadillac won’t have the capital to do all within a short space of time.
US manufacturers need to start building for the rest of the world, European manufacturers have done it for decades. Get with the time US and realise there is a world outside your borders.
Develop a platform that can be left and right hand drive.
Give them to HSV operation arm of Holden as chassis and engines in stripped doner form to complete up as RWD variants of CTS V to be GTS and then evaluate to follow with ATS or Camaro Variants.
The CT6 ’08 was here RHD in small number trial as part of Pontiac G8 they weren’t popular one still sits on a lot nearby. HSV successfully market their GTS LSA powered (Chevy SS on steroids) to England as Vauxhall VXR8.
So if they panel up the Caddy’s as HSV’s they have a ready market for that price point and can offset RHD costs by joint investment private and local government interest in partial manufacturing as such. Just an idea and hope for hero brand and platform to unite.
I’d rather see them get their act together in North America before entertaining thoughts of global domination.
The two issues are not mutually exclusive. By globalizing their platform Cadillac can make business cases for more models and expenditures.
Right.
But the profit and volume to make that happen will be driven by the US, China and Canada, yes? Near-term, anyway. I’m hard-preseed to think of another market that could make a sizable difference.
Correct that the top 3 markets for Cadillac represent the approx. 80% of the annual sales but Cadillac has to expand to grow.
Success abroad can also help with brand building. That can increase mind share or the general public’s perception of Cadillac.
All markets other than the ones they are currently selling in have issues if they pursue.
-South Africa, Australia/New Zealand -RHD required (new platforms)
-India and Brazil- good potential many years down the road
Recently I traded out of my 2013 ATS and into a 2016 Mercedes E400. The lease for the E400 virtually identical to the 4.1% 60 month loan on the ATS. Aside from the updated 4 and 6 cylinder engines and an 8 speed automatic, no particular reason to trade for another ATS. Dealer service experience? Poor. Decided not to allow local Cadillac service anymore after a botched unnecessary repair. Received very professional attention at Mercedes and walked away with the E400 coupe. My phone NEVER worked in the ATS, even with repeated service attempts. My phone instantly “paired” with my E400. Frankly I was sold when I first opened the door of the E400 and experienced the Nappa leather and the beautiful interior trim with black ash wood trimmed steering wheel.
Local dealer experience provides Cadillac with the greatest challenge going forward with competition from Mercedes and BMW. Higher end customers expect, and have the right to expect, service at that level. A “Chevrolet” type experience won’t cut it.
Yes the pairing of Cadillac and Chevrolet is the part that should be worked on. Years ago the more exclusively Cadillac only dealerships did a far better job of “servicing” their customers needs because Cadillac is not a mainstream product like Chevrolet and their sales and service staff knew it and therefore did better than seems to be the case these days.
Completely agree. Customer experience is critical for Cadillac moving forward.
If a client is paying premium prices they should expect a premium experience.
Cadillac is trying to get some separation from the rest of GM as evidence by having different head offices, product platforms and separate financial reporting. It will take time.
Unfortunately they lost another client in the mean time.
Cadillac has NO presence in the EU.
And with the current offerings (unrefined engines, poor build quality, horrible fit and finish, zero resale value, grandpa looks, lack of luxury features, cheap dealer experience) they shouldn’t bother either.
Much better (in every aspect) German cars widely available.
Need to start building more cars in Canada instead of moving them out of Canada …Canadians do buy a lot of GM cars and trucks.. Other wise Canada will likely switch to buying Japanese brands..
Ummm… The post is about Cadillac expanding to other markets not GM production in general.
BTW…Canadians already by a large number of Japanese products.
Also.. GM, Ford and FCA already produce a much higher percentage of products in Canada then all other non NA manufactures.
So you would rather Canadians buy more Mazda’s, Nissan’s or Mitsubishi’s who all do not have manufacturing bases in Canada instead of GM who still builds a very large number of vehicles?
central africa =)
Is this article written by a 5-year old?
Cadillac with barely a few dealers in Germany and Netherlands can’t be called ‘EU-available’. And that information on their EU web-page are mostly lies. Many of those ‘dealers’ don’t even exist and most are multi-franchise ones that haven’t been selling Cadillac for 7-10 years!