Cadillac confirmed for Australia

[Poetic Justice]

Holden has confirmed the Cadillac brand will be sold in Australia in 2008.

The return of Cadillac after nearly 40 years confirms one of Holden’s worst kept secrets, signalling the arrival of yet another luxury brand to a market segment dominated by Mercedes-Benz and BMW and, to a lesser extent, Lexus and Audi.

Hosting an end-of-year lunch for the media in Melbourne today, Holden chairman and managing director Chris Gubbey said the quintessentially American Cadillac luxury brand will go on sale in Australia for the first time since 1969.

"With cutting-edge design, serious performance and luxury appointments, Cadillac will appeal to Australian prestige car buyers and quickly establish itself in a segment traditionally dominated by European brands," says Gubbey.

"Cadillac is undergoing a brand renaissance and global expansion driven by dramatic design and technical innovation."

Cadillac will launch locally in the fourth quarter of 2008 with its CTS model that's powered by a 227kW 3.6-litre V6. It's based on the Holden Commodore's Alloytec V6, albeit with added efficiency due to a more advanced direct-injection system that boosts power and reduces fuel consumption.

A 2.9-litre V6 turbo diesel will become an alternative engine choice for the sedan in 2009, and is also rumoured to be in the pipeline for the Commodore.

All CTS models will feature a six-speed automatic transmission, with stability control, front/side/curtain airbags, and iPod compatibiliity also standard.

Buyers will be offered the choice of two sporty suspension packages, and a 40GB hard drive and keyless start system are among the options.

In trying to establish a niche within the Australian market, Cadillac will play on its bold, angular styling and American heritage as well as a value-for-money pitch against rival European makers.

Holden says it wants the Cadillac CTS to take on BMW's 3-Series and Audi's A4 - specifically the 335i and A4 3.2 models.

Cadillac will provide increased competition for other luxury brands, too, including Jaguar and even General Motors' European luxury brand, Saab.

As Lexus is to Toyota, Cadillac would effectively be the luxury arm to Holden, allowing the company to push beyond its $80,000-odd price limit today.

The Cadillac CTS could be priced from an estimated $70,000 to $80,000. Priced against the likes of the BMW 3-Series, the CTS is closer in size to the BMW 5-Series, which is more expensive.

Cadillac will also offer more in the way of engine performance compared with similarly priced European rivals.

Cadillac is expected to seek modest sales ambitions, in much the same way as the General Motors-owned Hummer brand is filling a niche rather than upending the 4WD market. Holden will set up about 15 Cadillac dealers through its GM Premium Brands division that also includes Hummer and Saab.

Other Cadillacs that could eventually arrive in Australia include a high-performance convertible, larger sedans and a four-wheel-drive.

Holden and has been evaluating the importation of Cadillacs for years but has been hamstrung by a lack of availability of vehicles with the steering wheel on the right-hand side.

Like many American brands, smaller volume right-hand-drive markets such as Australia have been largely ignored as car makers expand their model line-ups for local markets.

But efforts in recent years to target smaller markets and take brands such as Cadillac global have ensured car makers are working on developing vehicles with a global market in mind.

Despite confirmation from Cadillac sources in the United States that the brand was confirmed for Australia, Holden has for years maintained that the business case for bringing Cadillac to Australia was not confirmed.

However, Drive learnt earlier in 2007 that selected Holden dealers toured Cadillac dealerships with a view to opening their own Cadillac division.

Gubbey’s announcement today will finally put luxury car rivals on notice that yet another brand will enter a highly competitive market segment where brand values are arguably more important than ever.

In a small way Holden know-how helped shape the Cadillac CTS that will be sold in Australia; former Holden design boss Michael Simcoe helped smooth the lines of the new CTS that was unveiled at the beginning of 2007.

Holden has also been rumoured to be playing a role in the development of a V12 engine for a flagship Cadillac of the future.

While denials have been made about Holden’s involvement in a V12 Cadillac program, rumours about such a vehicle – and potentially some Holden input – refuse to go away.

The rumours suggest two V6 engines could be mated to form a potent V12 for a flagship Cadillac.