Senior GM management in Britain are to intervene in a bid to jump-start Cadillac’s disappointing UK sales which failed to reach 400 cars last year, less than one fifth of Aston Martin’s tally for 2006.
Go deeper with GlobalData
Generating fleet sales by bringing the luxury US brand under GM’s Vauxhall-dominated fleet umbrella is central to the new strategy, while direct control of promotion and marketing is also likely to be brought in-house.
Britain’s largest car retailing group, Pendragon, with exclusive Cadillac franchise rights until the end of 2009, has been in talks with GM UK and Europe executives plus Dutch-based Kroymans automotive group, European distributors for Cadillac, Corvette and Hummer.
The agenda is believed to have covered establishing a GM cluster of prestige brands covering Cadillac, Saab, Corvette and Hummer, the latter establishing a limited ‘strategic’ three-dealer UK network this summer.
At the end of 2004 Trevor Finn, Pendragon’s chief executive, predicted Cadillac and Corvette sales would reach 4,000 units by the end of 2009.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataJim Taylor, Cadillac’s global general manager, conceded: “Europe in general and the UK in particular are very tough markets where you have to earn every sale against established European premium brands. Even with good hardware, it is an uphill task making people aware of availability.
“The challenge is a lot greater than we anticipated. In the real world there is a big difference between advertised prices and real life values affected by incentives. Customer perception and brand acceptance issues are huge issues and do not change overnight.”
Kroymans’ chief operating officer Gerard Jansen said: “This is a marathon not a sprint. It is a long, tough and expensive journey. We are investigating how to be more competitive and effective in the UK. We will not walk away from Pendragon. All the partners are determined to make it work. We are close to GM Europe on the potential of doing serious pan-European fleet business.”
Jansen confirmed that GME’s remit was likely to include co-ordinating sales, brand management and marketing as part of being: “more on the case.”
Senior GME executive Wolfgang Schubert was appointed Cadillac/Corvette’s European chairman, based in Holland, last summer.
One factor identified by analysts as hindering Cadillac sales is the Swedish-built BLS’s price premium over its Saab 9-3 corporate cousin. Jansen’s responded: “We will maintain a higher positioning than Saab. Cadillacs are engineered as better cars, quieter, more refined and with superior fit and finish. That should be reflected in residual values.”
He accepted that Cadillac is unlikely to reach its 2008 European target of 10,000 sales but insisted the 20,000-unit forecast by 2010 is attainable.
Hugh Hunston
