Cadillac ATS-V 2015 Geneva Motor Show

Cadillac’s European expansion plans postponed to next decade

August 14, 2015

Cadillac reportedly wants to expand in Europe with diesel engines, right-hand drive models and an exceptional service, but that is not its immediate priority. The brand will first focus on growing in China, the Middle East and Russia, and then in Europe, said Cadillac President Johan De Nysschen at the J.P. Morgan Auto Conference on Tuesday. GM is postponing Europe expansion plans “beyond 2020,” he added.

Expanding in potential markets late means bearing opportunity costs, but trying to avoid that by introducing wrong product(s) leads to bearing huge losses. “We’ll go to that market when we have the right powertrains and the right cars,” the brand’s President said.

“We can only achieve so much at the same time; all of these things cost money. Let’s get strong in these other markets which naturally provide immediate volume opportunities before we tackle the Germans in their backyard, and we do so then with a position of strength.”

Mr. De Nysschen also said that Cadillac is targetting China as the second sales volume hub tailing the US. The luxury brand sees growth opportunities also in the Middle East and Russia, over the next five years. It will give more importance to crossovers now and add some “lifestyle cars, convertibles that really have been part of our heritage (and) some coupes” in the compact luxury segment.

[Source: The Detroit News]

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