GMInside Opinion: Cadillac’s Dilemma

[TaHoE]

GMInside Opinion: Cadillac’s Dilemma
Keeping Elvis Presley, Attracting Jeremy Clarkson
By: Jordan Marmara

Starting with the introduction of Cadillac’s famed CTS, GM realized that in order to bring Cadillac back to its past perch of “Standard of the World” Cadillac would indeed need to be sold around the world. Makes sense in my book. Well, three years after the debut of CTS, Cadillac has attacked corners of the world where it has little to no image. Markets like China, Australia, Europe and the Middle-East are now becoming acquainted with GM’s razor-sharp, All-American brand. Reviews have been luke-warm, particularly from Europe as expected. This is not to say that Europeans have sub par or even superior automotive taste, just different. Americans like their cars large, powerful and with lots of cup holders; Europeans however have size limitations, engine displacement taxes and no need for the nonsense known as “cup-holders”.


It is unclear to me whether GM honestly expected to sell Cadillacs at a barn-burning pace in Europe and other markets, or if they simply wanted to get their foot in the door. To this date, Cadillacs global sales cannot even dream to reach those of BMW and Mercedes. This is expected however, since both brands have a long, deep-rooted history in Europe as well as the reputation, engineering and sheer number of dealerships to back them up. Cadillac is definitely closer than they were before the change of the millennium. However, for them to have an honest chance, they first need to perfect their lineup here in the US, which although good, still isn’t spectacular.

Much talk has been made about the CTS becoming larger in the next generation. To be honest I think this is a rather idiotic idea in a "global point of view" sense. The CTS (if meant to be a global competitor) is already much larger than the Audi A4, BMW 3 and Mercedes C-Class. In America this may be fine, however once the CTS crosses the pond, it will be cross-shopped with mid-size European and Japanese sedans, which in Europe are much better equipped than the CTS. For Cadillac to succeed as a global company, GM needs to observe sizes and trends within Europe, which tends to set the trend for the rest of the world. Cadillac also needs more powerful engines in terms of horsepower per liter of displacement, and as we know this is on the way with the upcoming 3.6L VVT DOHC-DI V6 (Wow, that was a mouthful) with a rumored 320+HP. Cadillac vehicles also need to have world-class interiors with space saving technologies allowing the most interior room, while using the least amount of physical space as possible. Cadillacs need to be adaptable to different climates and cultures, not just one big ol’ package. Diesels are also quite important in Europe, and although Caddy has equipped the CTS smaller brother, the BLS, with a diesel, it’s simply a Saab in Caddy-drag. Simply put, Cadillac needs to start engineering from a world point of view and not a North American point of view, if they really want to be a global company. Otherwise, I think the title of “International Luxury Brand” should go to Saab.

Saab would be a perfect brand for this need. You can have FWD with optional AWD which will save space and add safety. Also if a FWD car is well engineered, it can be fun to drive as well evidenced by the Mini Cooper. Saab already has a reputation, which whether good or bad, is still a reputation and they have dealers and service centers already well developed.

I personally have no problem with Cadillac wanting to be a true global player. In fact, I think it’s vital for the brands durability and longevity. However for it to act like a global player, Cadillac needs to think like a global player.

www.gminsidenews.com

[ChevroletRevived]

Excellently written article, TaHoE!

[sigma]

^That pretty much sums up how I feel. SAAB should be the international FWD luxury brand and Cadillac should be RWD. Stop this mindless rebadging.

[jc7222]

I wonder if this is a more expensive route than developing Saab as your world luxury brand first. In Europe Saab is much better received than Caddy and has a larger network of dealers. Even if Saab, to some, is not on BMW's and Benz's level, Audi was also there not long ago. There was a time that Audi wouldn't even be thought of. Now that's changing.
GM should be trying to things the most financially efficient way right now. Trying to push Caddy overseas may not be the right thin today. I think Saab is the brand that should be developed more for international purposes. And Caddy should stick to raising their game in the U.S.. When GM is financially healthy enough then develope Caddy more overseas.

[HoosierRon]

I think Cadillac has another, bigger problem. We are told that:

1. Buick is competing against Lexus, which itself is competing against Mercedes;

2. Saturn's new target is Acura, which views its own competition as BMW; and

3. Cadillac wants to be the Standard of the World.

If all three of these are to be true (and certainly the Enclave and Sky have done their part), then Cadillac will inevitably need to move upscale. I mean way upscale. If Cadillac wants to be The Standard, it needs products to compete against the DB9, and Continental and Quattroporte. The C Class is nice, but who considers it the standard of the world when it is parked next to an XJ-R. Let's face it, a 3-Series beater is no Aston Martin Rapide beater. While moving upscale will do wonders for GM's repuation, it won't do much for Cadillac's sales.

As for Europeans buying the CTS, they won't as long as they view its interior as crude and unrefined. And let's face it, compared even with the lowly X-Type, the CTS's dashboard is a bad joke. And while the new CTS interior is light years better than the current one, who is going to say that it is the Standard to which Aston Martin and Maserati should aspire?

Like I said, Cadillac needs to move way upscale.

[gwwyjjliu]

You're right. Cadillac, despite its international aspirations, is still very much an American brand in its appeal and design. There are signs that the bold razor-sharp style of the CTS doesn't connect in European and Asian markets. I'm not in favor of toning down Cadillac's styling either. If you made a me-too BMW, you'll never have a chance with an unknown brand (Cadillac) going up against the real thing.

I do agree with you that Cadillacs have to have the features that international customers demand. Heck, the CTS in China doesn't even have rear parking assist in a market where even lowly Geely's, Chery's and GM's own Chevy Aveo has it. How can you sell a $60,000 (USD) car in China's incredibly congested cities without even this basic feature???

[56 Starchief]

i agree with hoosier and everything needs to be moved upscale; though i think they should still have a CTS model

[b4z]

There is a orange CTS in my parking lot which makes it a 2003 that was actually sold in 2002.
So the car is 4 years old.
The headlights have started to yellow and the lenses have small spider web cracks all over them.
Looks look total crap.
I guess in another 2 years they will be completely yellow.

I looked at my '04 SRX that I bought 27 months ago and it has a little discoloration on the top of the lens.

Cadillac needs to do better with this stuff. A Cadillac can't have the same quality parts that the rest of GM cars have. At least one step better.

While I see Volvos and Chrysler products riding around with yellow headlights I don't see a lot of Mercedes.

[gotz_otto]

I think Cadillac needs a greater product range. They need more models and style. A supercar to get more attention. A rear drive roadster like the Z4 but prettier. Some more two doors, like the eldorado. I feel the northstar is getting old also, give it a healthy update.

[CobaltSScrazy]

i'm still in bewilderment over how cadillac is positioning the brand and its vehicle lineup...what is CTS against, is the brx/bls coming here, when? Is srx enough suv/x-over is enough to gardener in buyers to the brand? is escalade too corporate, is STS getting larger, what does it compete with. will the dts FINALLY die and be replaced with a proper rwd lwb zeta premium ULS? Do we get a cts coupe/vert as well as a six series / CL competitor? What about an audi TT size car?

will future design language be sixteen ish or CTS ish or toned down sts-ish and how do you harmonize that? lastly, what direction will interiors take? Copy bmw? copy lexus? create your own premium design language??? Honestly Cadillac, luxury buyers will pay as much as they do for their German counterparts if you don't discount the vehicles and offer the same features materials quality etc. etc. etc. i'm convinced of that.

[asim]

Your article just pretty much nails it on the head...I don't even have anything else to say.

[mgescuro]

Originally Posted by CobaltSScrazy

Honestly Cadillac, luxury buyers will pay as much as they do for their German counterparts if you don't discount the vehicles and offer the same features materials quality etc. etc. etc. i'm convinced of that.

Yup. You're absolutely right. Luxury buyers will pay for a quality product.
Speaking for myself, I look for the details. If I don't believe something is crafted with the best details, then why would I spend $50-70K on it??

Features... materials... details. Luxury buyers like myself won't pay for what can be perceived as cost-cutting and stupidity. No matter how much HP, leather, and discounts I can get.

Discounts cheapen the car. And it's murder on the depreciation value of the car.

Good luck Cadillac. I'm still waiting for a decent STS. But I don't know for how much longer...

[Mikkoo]

Originally Posted by b4z

There is a orange CTS in my parking lot which makes it a 2003 that was actually sold in 2002.
So the car is 4 years old.
The headlights have started to yellow and the lenses have small spider web cracks all over them.
Looks look total crap.
I guess in another 2 years they will be completely yellow.

I looked at my '04 SRX that I bought 27 months ago and it has a little discoloration on the top of the lens.

Cadillac needs to do better with this stuff. A Cadillac can't have the same quality parts that the rest of GM cars have. At least one step better.

While I see Volvos and Chrysler products riding around with yellow headlights I don't see a lot of Mercedes.

These are excellent points. If you want to play with the " Big Boys", you have to build in durability too.

[hotrod747]

Ya know, I have to disagree with this article. For years, the domestic brands have been trend FOLLOWERS with little success as far as cars go. What the domestics need to do is what they've always done best. HINT: Chrysler 300, Caddy Escalade, Dodge Charger, Ford Mustang, Chevy Tahoe, Pontiac Solstice, G6. Need I say more? Engineer and design vehicles with passion. Ya know attractive ones that people actually want to buy. Cadillac needs to stop playing it safe and go very hi style, hi lux, and hi quality, and dare the competition to follow THEM for a change. The domestics' opportunity to blast the import competition is right now! For years, it's been so easy to follow the competition, but by the time they get product to the market, they've missed the boat.

[BigThreeForever]

There is no point whatsoever in trying to crack the European premium market. It is owned by Mercedes-Benz, BMW and Audi. They face no serious competition in the Old World.

Jaguar is not a rival, nor is Saab, Volvo nor even the mighty Lexus. GM Europe dropped its large cars, as did Ford of Europe, because, although they were designed and made in Germany, they did not have the apparently mandatory Stuttgart-Munich-Ingolstadt pedigree. Korean luxury attempts would simply be laughed out of court.

Trying to crack the European market with Cadillac is roughly about as viable as trying to crack the Japanese domestic market with the Cobalt.

It is simply not going to happen. GM should concentrate its scarce resources in trying to turn the tide in America. Sure, if you can find overseas markets that are receptive to Cadillacs, then by all means try and penetrate them, but Europe is simply off-limits for at least a decade, in my honest opinion.