Cadillac is back

GM HOLDEN has announced that Cadillac will return to Australia in 2008, with the American luxury marque’s modern era commencing with the new-generation CTS sports sedan.

To be sold alongside Hummer and Saab in GM Holden’s “premium” dealerships, the CTS will be launched in the final quarter as a single rear-wheel drive model packed to the gunnels with equipment and offering a higher-than-Commodore level of performance via a new 227kW/370Nm 3.6-litre VVT spark-ignition direct-injection (SIDI) version of GM’s Global V6.

In revealing details of the plan on Monday, GM Holden chairman and managing director Chris Gubbey described Cadillac as a “great addition to our family here” and denied that the American-built CTS would endanger premium Australian-built Holdens such as the Calais.

“There is a clear recognition that there is a place for a premium brand strategy alongside GM Holden’s brand,” Mr Gubbey said. “There is a recognition within Holden that you’re looking at potentially different segments of the market and a different type of customer than one that would necessarily go for a Holden product.” Ditto for potential conflict between sister premium brand Saab: “When you get down to it, Saab and Cadillac are both premium cars but it suits a different customer base. I think the likelihood of internal conquest would be pretty unlikely there.” Mr Gubbey would not be drawn on nominating a sales target for the brand, nor the launch budget GM Holden has set for the CTS – other than to state the obvious that “it’s a tough job when you introduce a new brand, and it’s not a cheap option either”.

“If you want to put that cost in terms of cost per car and compare it to your mainstream brand that’s been going for 60 years, it’s big bucks,” he said. “But if you’re going to get the realisation out there, that’s the cost initially that you’ve got to swallow.” Mr Gubbey acknowledged that there is a perception in Australia of Cadillacs being big, ponderous sedans best known for transporting wedding parties – which is a far cry from the message of the CTS being a hi-tech driving enthusiast’s car.

“We’ve got a re-education process to do about what the modern Cadillac is all about, and if we’re successful in getting that message across … we’re going to be successful in selling them,” he said.

“There’s two things: one, what mindset you have got (among Australians) is different to the products of today. But then the second message is: the product that we’re bringing today is more in line with what they want. People don’t want you to bring back big, floaty wedding cars – they want the cutting-edge performance, ride and handling that a modern Cadillac offers.” There is a sense that, in part, Holden has added Cadillac to benefit its export program to the US, a balance-of-trade issue that GM’s global product development chief Bob Lutz raised with GoAuto in October.

While Mr Gubbey did admit that importing Cadillacs was an example where “things work both ways” on this score, he emphasised this was not a prime consideration behind the decision to introduce yet another car brand to Australia. (Cadillac is on track to be the 46th passenger car brand in this country.) “Market drivers and availability are (more important) than tit-for-tat,” he said. “We couldn’t go to GM and say, ‘Look, we want that because we’re giving you this, even though it doesn’t have a decent business case, but c’mon you owe us’ – it doesn’t work like that.



“But if we look at sustainability for us as a manufacturer, we do have to get stronger in the export business.” GM Premium Brands director Parveen Batish described bringing Cadillac to Australia as “a really important step for Cadillac globally”.

“While it has an undeniable heritage, Cadillac has entered a new phase with a very clearly defined global strategy,” he said. “Cadillac is not just a US brand any more, it’s a global brand … Cadillac is now taking advantage of its right-hand drive portfolio, launching in new markets and incorporating the news of global customers at the beginning of the vehicle development process, and not just at the end.

“This will give Australia access to the range of next-generation vehicles as they come to life.” Mr Batish said sales outside North America had grown more than 40 per cent since 2001, pointing to Europe (up 45.3 per cent over 2006 for the first three quarters this year), Asia-Pacific (up 98.4 per cent) and Latin America, Africa and the Middle East (up 49.4 per cent). He did not mention the difficulties Cadillac is understood to be having in other markets, such as Britain.

“We know the Australian car market is mature, it’s extremely competitive and consumers are very brand conscious. So a vehicle has to exceed people’s expectations, and a brand has to have real cut-through,” Mr Batish said. “We think Cadillac will quickly establish itself … in the Australian luxury segment, which until now has been dominated by the European brands.

“The GM premium brand strategy has positioned us well to launch initially with one model, and gives our network the volume they need across all brands to be profitable and specialise in delivering their customers a truly premium brand experience.

“Launching with CTS is part of a very clear strategy to launch the brand with the next-generation vehicles as they come to market, including new models, new bodystyles and new powertrains.” The latter will include for CTS a 2.9-litre V6 turbo-diesel engine, which enters production in 2009, and a V8 petrol engine. All-wheel drive derivatives available in overseas models are also expected, but will not be available from launch.

Scheduled to be manufactured in Australia before long (2008/09), the 3564cc DOHC 24-valve SIDI V6 produces its 227kW at 6300rpm and the 370Nm at 5200rpm. It will be paired exclusively in Australia with GM’s Hydra-Matic 6L50 six-speed automatic transmission – the Aisin AY6 six-speed manual will not be offered.

The chassis includes a short-long-arm (SLA) front suspension and a multi-link design at the rear, with Australian customers able to choose between two “performance-tuned” suspension packages. US specifications indicate the latter is likely to be combined with 18x8.5-inch wheels and 235/50-section Michelin Pilot Sport 2 tyres. Braking hardware comprises 346x32mm front/340x26mm rear vented discs, while the steering is variable-assist rack-and-pinion.

A little smaller overall than the Commodore/Calais, the CTS rests on a 2880mm wheelbase, measures 4866mm in length, 1472mm in height and 1842mm in width. The front/rear track is 1570mm/1575mm, kerb weight is 1757kg, and the (RWD) front/rear weight distribution is 51/49.

Technology highlights include integrated iPod/MP3 capability, a 40 gigabyte hard drive audio system (plus Bose 5.1 Cabin Surround), an adaptive forward lighting system (combined with HID headlights) and keyless entry/go. Standard equipment should also run to electronic stability control, four-channel ABS (with brake assist), six airbags, a tyre-pressure monitoring system and ambient interior lighting.

Mr Batish said the exact number of Cadillac retail outlets was still to be determined. Prospective customers can register their interest on a new website GM Holden has created: www.cadillacsoon.com.au.

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