Cadillac cancelled for Australia
January 22, 2009 by Alborz Fallah
GM Holden chairman and managing director, Mark Reuss, announced this afternoon that the premium brand Cadillac will not be coming to Australia.
Mr Reuss said it was a “very painful decision” for him to have to announce the decision but he believed it was the right one given the current economic climate.
While not drawing a complete line under the proposal to launch the GM Premium Brand in Australia he said it would be indefinitely delayed.
He emphasised that the decision purely related to the Australian and New Zealand market and did not impact on other right-hand-drive markets where Cadillac was sold.
“With the downturn of the Australian automotive market and the broader global financial situation, we have made a common-sense, commercially responsible decision to not introduce a new brand into the exceptionally challenging Australian market at this time. GM Holden was faced with making a significant investment to launch a new, niche brand into a tough market.” Reuss said
Mr Reuss said it was a tough call, especially as he had previously had a lot of involvement in the development of the current Cadillac products, but he believed Gm Holden had one chance to launch the brand in Australia and it had to get it right.
He said that given the economic climate in Australia and worldwide it was not the right time to be launching a luxury niche brand here.
“Given that I have taken the decision to elect to not launch Cadillac in Australia,” he said.
Mr Reuss said GM Holden’s primary concern at the moment had to be on the issue of re-inventing Holden as a local brand and this was the primary focus of his team.
He said that he had spoken to the 14 Australia-wide and three New Zealand dealers who had taken up the Cadillac brand and all had agreed with his decision.
He also said that by taking the decision at this time there would be little or no financial cost involved.
He said GM Holden had incurred some cost in preparing the Cadillac CTS for compliance with the Australian Design Rules but he did not know what that exact cost was.
He said GM Holden currently had 89 cars in Australia in preparation for the brand launch, which was planned for mid-February and the company would look at how these could be placed with other right-hand-drive markets.
He said there would be no job losses or impact from the decision.
Asked by CarAdvice what impact this would have on the other GM Premium Channel brands currently sold in Australia, namely Hummer and Saab, he said both were under strategic review by the company’s parent in Detroit but that they would be fully supported locally in the immediate future.
Asked when the decision had been first considered and had it come as a result of direction from Detroit, Mr Reuss said it had been under review for about two weeks and that the decision had been entirely his.
“I was obviously supported in this decision 100 per cent by Detroit,” he said.
Reiterating that the Cadillac brand was still on the agenda for GM Holden he said the market in Australia was being constantly reviewed and he believed there was a place in Australia for Cadillac.
He said there was every reason to believe that as the economic situation improved later this year and into 2010 that the future launch of Cadillac as a brand in Australia would be re-considered.
Print it: 
*****PRIMO!******
That’s actually quiet sad, not that the brand would have done all that well anyway.
But we deserve to have choice if nothing else.
The CVS? sedan with he Corvette engine had the measure of a M5, that was’nt on the import list, but anyway!
Cheers
F-0
I thought it sounded a bit far fetched from the beginning. The would have sold like other American cars at the moment, very, very slowly. Take a long look at that picture of the dude at the top and ask yourself…”Would I buy a car from this man?”
I was waiting to see when this article got posted and I could have sworn that this article just got posted with a comment.
Mr Frugal–One is either on this site every second or is the author of this article!
What’s going on CarAdvice?
No big surprise really. Keeping Holden going as the mothership sinks is the No. 1 priority.
Simon Says:
January 22nd, 2009 at 2:01 pm
I was waiting to see when this article got posted and I could have sworn that this article just got posted with a comment.
Mr Frugal–One is either on this site every second or is the author of this article!
What’s going on CarAdvice?
LOL!!
C/A is my homepage on my PC, NEVER turn my PC off so i see C/A anytime i am near the PC.[Which is to much lol]
Have no relationship with C/A, in fact *they* moderate my posts fairly often!
*THEY* have offered my a press-pass to the Melb. Motor Show, lets hope they keep there word!
Cheers
F-0
Another nail in the coffin……..
Predictable YES…GLAD YES…CTS is frikken ugly, the 4 door sedan would have been better, wouldve sold alot i think, just look at how the 300c has gone, they sold alot of them.
Anyhow what can u do, i seem to remember a certain 4eyed shortass little worm/wanker PM saying, “we wont go into recession, australia is far far better off than most of the other countries”..what a wanker..anyhow i think 09 is going to be a good year to be honest, i am really not buying into the doom and gloom. their is no way the world will go back to a 1930’40’s type recession….people have just got 2 be patient and ride it out as best they can…
thats my 2 cents…. signed NOSTRODAMUS…hahahaha
FRUGAL–ONE
Nice–One, FRUGAL–ONE.
Anyone at CarAdvice, I know a few people that would like a pass as well. Can you hook us up?
Anyone else want a press pass?
Looks like the frugal-one is on the pay list, how do I get a press-pass to the motor show?
Geeeeeeeee……….thats very disappointing! I wanted to see the new CTS Caddy! :(
A person comes into a GM dealership, sees a Cadillac and is told by the honest sales guy: you can have near-all this tech for 40K less under the Holden badge — could have been a reason to still import Cadillac even if not selling many.
SIMON/BRIAN -
I repeat i have no ongoing relationship with either C/A or any of its staff.
The *free* press pass was offered by Alborz to me for supplying pictures of the Falcon FG mules[They where never used/posted but where supplied by me to C/A]
Now you know the full story, i doubt very much you get them just because we want them, just like we dont always get girls mobile phone numbers just because we want them! :-)
Cheers
F-0
Wise move. The current economic woes would make it difficult to launch any new brand into Australia. Sometimes you have to go backwards in order to move forward.
Must say the Caddilac actually look quite sweet and certainly have more up-to-the-minute tech.
Certainly far ahead of “those” P.O.S Caddilac’s of yester-year.
No loss that they’re not coming to Aussie ’cause despite
improvements Caddilacs are NOT a patch on Merc./BMW/Audi
Jaguar/Volvo. etc etc
As for the CVS with Corvette engine. Typical G.M needs an engine at least 30% just to be competitive.
FRUGAL–ONE
no worries frugal one, do you get to take someone to the show with you? I would love to go, ill bring my camera too. what time does it start?
Yeah, predictable.
If Pontiac can’t justify the sales of the Ute in the US, it’d be hard to make Caddy work here in this economic climate. Surely they would have sold more Sporttrucks in the US, than we would have sold Caddys in Oz?
I gotta say, Mark Reuss seems to be making some canny decisions at the moment.
Going green with Commodore, 2nd car model to be built here, Caddy on hold.
The decision should have been expected, & is a good one.
Can we transfer Laura Csortan over to do some Holden ads, now that she won’t be fronting Caddilac?
Probably a good idea to trash-can Caddy – it surely would have cannibalised Calais and Berlina sales. Holden ought to focus on selling the locally-made models first.
Dont think shes doing anything else anyway JasonP………..
BM (.)(.),
Well I’m sure some of us boys could come up with a few suggestions.
:-)
Just standing there looking pretty works fairly well.
hahaha JasonP what blonde and useless…..meoooooowwww,
just looking to see if your on Caradvice facebook , seems your not…..unless you operate under an alias like a lot of others do on this site………
THANKYOU VERY MUCH,
NOW HOLDEN CAN PUT THE 230KW V6 AND 6 SPEED AUTO INTO THE NEW COMMIE…
BM (.)(.),
Didn’t even know they had a facebook link.
What is the link?
Be warned, it’s a face non even a Mother could love…..
:-)
I have $5 on you over Laura Csortan.
I think with the current market situation, it was a smart choice, why have an expensive car that no one knows about sitting on dealers floor plans when they are strugging with there floor plan already!! better of spending the marketing money it was going to cost to launch the brand on the current luxury commodore models, to keep sales going on the australian car..
Surely no-one who reads CA is surprised about this decision.
Motor show – any takers on which manufacturers won’t show???
Saying that Hummer and SAAB are “under strategic review” is Detroit speak for “we are trying to flog them off to whichever mug car company we can”
I agree with JasonP – wise move by Reuss.
The marketing $ that would have to be put behind Cadillac to sway punters out of the EuroMarques (or even a Caprice) can be better spent elsewhere.
Holden’s current “Times are tough but Australians and Holden are tougher” campaign is doing well to position the brand with the private buyer.
Hopefully the VE10 will inherit some of the Caddy’s marketing $$. There will be lots of %age improvements over the current VE to really crow about in terms of efficiency, safety and technology when it launches in the third quarter.
I would have liked to have sen Cadillac here.
However I think this is good news for Commodore. I always thought it would be hard to justify a $75000 car having the same engine as the Commodore if/when they finally get the DI engines into the Holden. Now there is no conflict of interest.
I would prefer just to see that engine in the VF.
awwwwwwwww your sweet Jason……….look under “live comments on this page at the side and it will take you there.
Look on the page in the comments I think I made the last remark……TonyN another old CA blogger is under me……..
Cheers
If we are to get a GM car from the US in exchange for the VE; I would prefer it to be either the Buick LaCrosse which is better looking than the Caddie
However; I don’t think the Caddie would have been a Direct rival to the humble Commodore as it’s more of a “Premium” brand and would have been aimed more at Lexus or BMW customers.. nor would it really ccmpete against HSV – it would have been marketed differently despite sharng similar features
I saw a CTS in Mt Eliza on weekend. V surprised to see, given that market release was to be in Feb. I was quite looking forward to having a good look at one. There have had a good write ups in the UK press etc.
I originally thought Cadillac would really affect sales of Statesman/Caprice and maybe Calais V because even though the price would be more, people would pay that extra for what Caddilac has to offer, good turn for Holden sales I think.
“I would prefer it to be either the Buick LaCrosse which is better looking”
Wheelnut, you nearly made me vomit my breakfast…then i realised you were talking about the 2010 LaCrosse. Which for a yankiedoodle car is not a bad looker, especially if it lost the bling bling grille!
“unless you operate under an alias like a lot of others do on this site…”
Whats wrong with that Bav?? Apparently Obama is in the group, and I stand out like a sultana in a bowl of rice pudding :)
we dont like yank rubbish,so its a top decsion.competitor for bm i think you are loosing it wheelnut or should that be wingnut duh.
Makes sense. You’d have to be an idiot to get a Cadillac over a 5 Series or an E Class. Now if they just get them out of the UK, I’ll be happy.
John A – read my vomments again and you will see that I didn’t say that the Caddie would be a competitor for or a direct rival to BMW; I saud the Cadie-yuck would be aimed more at BMW – and their customers….
I mean the Aurion isn’t what you would consider a direct rival to the Commodore or Falcon but that’s what Toyota aimed it at.. its the same thing
We don’t like Yank rubish…. then howcome Seinfeld; Everybody Loves Raymond; Survivor; Las Vegas; Sex and The City; Desperate Housewives; Ally McBeal Greys Anatomy; and Ugly Betty were/are some of the most popular shows on Australian TV? – and that’s only naming a couple
We don’t like Yank rubish…. then howcome Seinfeld; Everybody Loves Raymond; Survivor; Las Vegas; S-x and The City; Desperate Housewives; Ally McBeal Greys Anatomy; and Ugly Betty were/are some of the most popular shows on Australian TV? – and that’s only naming a couple
Lazybones – the other similar sized car to the LaCross that I’d like to see out here is the new Chrysler 200C which apparently is compared to the 3 Series BMW –
That’s not to say that it’s a direct rival to the BMW; John A. its just the car that it’s aimed at okay….
It’s not a bad looking car [particularly when compared to the 300C]; well appointed; and reasonably impressive performance and handling etc.
to wheelnut re yank rubbish you are so right in what you say about braindead yank tv shows,why they are so popular god only knows and look what its doing to our culture anyone under 25 talks with a yank twang we gas up instead of get petrol,we go to the store instead of the shop we pop the hood lift the trunk.chow down we no longer have holidays we go on vacation etc etc,and i still think the caddy is yank junk.
I didn’t see it mentioned but our Peso is weak at the moment too.
A Calais V or HSV Senator is a much more attractive car to the CTS – what a monstrosity.
Perhaps it’s a blessing in disguise – it could have cannibalised sales from the upper Holden and HSV range.