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Originally Posted by RCDonner
Where did GM have stand alone stores in Europe ?
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When GM 'relaunched' Caddy in Europe after the first generation CTS made it to market, GM had an agreement with Kroymans Corporation of the Netherlands to sell Cadillacs through a separate sales channel. The stores were to be either stand alone Caddy stores or Caddillac/Corvette showrooms.
The strategy fell apart and GM began to dissolve the partnership. They are now abandoning this in favor of shared showrooms, from what I read.
Quote:
Originally Posted by mgescuro
What the hell are you talking about?
In 2006, Lexus launched a dedicated dealership and service base in Europe, resulting in a 76% increase in sales. 2007 sales were flat because Lexus couldn't deliver key product to market in time.
In 2007, 13,000 Lexuses were sold in Russia alone -- a 30% jump over 2006.
In 2007, 4,500 Lexuses were sold in Germany.
Lexus strategy is correct. They are doing what they do best. Instead of mimicking what the Germans do, they stick to what they know and what has defined Lexus as a brand. THey're sticking to their guns.
Since 1990, Toyota's staregy in Europe was the "sell up" to the Lexus. but you had a Corolla parked next to the LS. Not exactly classy. In fact, it's exactly what GM does. AND IT DOESNT WORK!
So Toyota invested in an upgraded dealership experience, similar to the one it created in the US. Now they have 276 dealerships in Europe and Russia, and sell just enough Lexuses to make Lexus Europe PROFITABLE!!!
What GM does is **** around with Cadillac... and ****ing moans and groans about how Europe will be a tough market.... GM HASN'T DONE ANYTHING to rectify the situation!! They continue to bitch and moan and then whine some more when it doesn't go their way. And I'm sick of it.
GM is mismanaged, and their international strategy is a ****ing mess.
At least Toyota saw the problem with their strategy and opened up dedicated Lexus dealerships. GM still hasn't figured out that selling a Chevy or Opel next to a Cadillac DOESN'T WORK. Hell... they use the same strategy in the US. Guess what... IT DOESN'T WORK IN THE US EITHER!!!
Cadillac's goal is 5,000 annual sales in Europe. Lexus is 65,000. You want to put the sales differential on Lexus' larger product lineup? That doesn't work. Cadillac sells 6 models in Europe. Lexus only offers 5. EEEEHHHHHH....TRY AGAIN!
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You make many good points here Marc.
I think that sharing showrooms between Caddy and Chevy doesn't work either - in Europe or the US market.
The same can be said of the "idea" that Lincolns will eventually be sold in the same showrooms with Ford branded cars if Mercury should wither and die.
Having an upscale image must be maintained and nutured. I'm not advocating stand alone Caddy showrooms (thought that would be nice), but certainly NOT pairing Caddy with non-luxury brands. Caddy-Saab works. But Caddy-Chevy/Caddy-BPG showrooms? No.
This is the same reasoning that will ensure that Chrysler is never considered as a "true" luxury marque again. As Chrysler moves to consolidate all it's showrooms under one roof, it will be hard to give customers a "premium" experience when purchasing a Chrysler car as you are selling Dodge or Jeep only a few feet away. I'm not knocking Chrysler's strategy, but merely pointing out that it is much more difficult to reverse the image here. However, Chrysler may not have any delusions of over-gradeur for the Chrysler brand, so perhaps this isn't even an issueu for them.
Just my two cents...