Cadillac stays home

Holden MD Mark Reuss has announced the company will "indefinitely delay" the introduction of Cadillac to Australia. The decision comes less than three weeks away from the brand's media launch Down Under.

Blaming tough economic times and a slump in the luxury car market, Reuss said he personally made the decision to cut the flagship GM brand.

"We only have one chance to the brand in Australia," Reuss said in a teleconference this afternoon.

"We weren't able to 100 per cent do the car or the brand justice... It's painful but its just one of those tough decisions we've got to make."

The reintroduction of Cadillac into Australia was initially flagged as early as 2005. In late 2007 then Holden MD Chris Gubby then confirmed Cadillac would enter the market in late 2008 (see here). In the third quarter of 2008, the timeline was pushed into 2009.

Holden made a splash at last October's Australia International Motor Show in Sydney with the CTS sedan and a Coupe concept. A local media launch and drive program was scheduled for February 9-10. The company had already taken delivery of 89 CTS sedans which it says it will distribute across Cadillac's other right-hand drive markets.

Reuss took responsibility for the decision after meeting with GM boss in Detroit in recent weeks.

"It's really been in the last two weeks," Reuss said of the decision's timing.

"This was my decision and Detroit supports me in this decision."

Referring to the exponential increase in spend GM Holden would have committed to in the coming weeks, Reuss commented today it was better to pull the pin now "before the edge of the cliff".

He said just two of the marque's proposed 14 Australian dealers had incurred significant costs. Reuss also stated the company had not begun production of brochures or advertising material for the new brand and models. Both the above factors throw some doubt on the bona fides of the proposed first quarter local on-sale date for Cadillac.

Reuss is insistent, however, that Holden will launch Cadillac in Australia when the conditions are right.

"We want to preserve the right to bring Cadillac back into the market," he said.

"When the markets pick back up [we'll re-consider]. We're looking at the end of '09 and the beginning of '10. [But] This is something we're prepared to look at on a month-by-month basis."

The news places further pressure on the viability of GM Premium Brand channel Down Under. The Holden offshoot was established in 2005 and was intended to package Cadillac alongside HUMMER and Saab in standalone dealership infrastructure. Both 'surviving' brands are currently up for sale by GM as it struggles to restructure its US operations (see here).

Reuss said Holden would remain dedicated to the local GM Premium dealerships in spite of the uncertainty. GM also confirmed channel boss, Parveen Batish, would continue in his role.