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Old 07-21-2008, 12:26 PM   #60 (permalink)
wescoent
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Re: AN Comment: Cadillac Should Pull Out Of Europe; 07 Sales In 28 Countries Just 3K

Quote:
Originally Posted by mgescuro View Post
I disagree.
Cadillac needs to stick to what it is. Luxo barges, though that is what Cadillac is known for, will not sell in Europe because they are luxo barges. Who'd want it?

Cadillac needs to build a competent American luxury car, that not only distinguishes itself as American, but has the luxury AND technology to compete with the European marques.

The key is to offer an alternative to a European marque while not compromising on the key details that Europeans enjoy. Why would a European want to buy an American luxury car, if it is seen as a step down? Might as well buy a domestic, right?

The problem is, Cadillac has no focus. Cadillac's best attempt isn't nearly good enough to compete with the Europeans. It lacks design aethetics, has less room, has less technology, has inferior materials, has horrible ergonomics, poor build quality, and doesn't have the features available to the Europeans.

The reason why Cadillac doesn't do well in Europe is exacerbated by the fact that they still make second rate luxury cars!!!

Cadillac simply needs to do better than attempting to sell a Chevy with leather and putting a wreath and crest on it.
Western Europeans want small, high quality wagons with diesels. Cadillac's image is of large, low quality sedans with huge V8 engines. Hence, the problem. Their image is the precise opposite of the taste of Western Europeans.

This problem is made ten times worse by the fact they're sold alongside Chevrolets.

To overcome this problem, Cadillac would need to spend money to bring their cars up to MB/BMW spec (which they have failed thus far), create a stand-alone dealer network, AND launch a massive marketing campaign to change their image. GM does not have the money for this.

My solution goes back to my sales channel re-organization. Establish an international Cadillac-Buick sales channel in the US, Russia, China, Africa, India, the Middle East, and South America. Buick will sell the Lexus-style soft luxury models, and Cadillac will sell the hard-edged sporty luxury models. Ensure that wagons and diesels are well-stocked, and ensure that both Buick and Cadillac have a big and chromed-out model for the local politicians and business owners to flaunt.

Forget Western Europe... it's a money pit with no benefit whatsoever to the brand.
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