Filed under: Car Buying, Sedans/Saloons, Euro, Plants/Manufacturing, Cadillac, GM, Saab
Cadillac BLS a bust in Europe?
Despite lowering expectations for its Euro-only BLS sedan all the way down to around 7,000 to 10,000 units annually, it appears Cadillac was still a bit too optimistic with the car's chances for success in the old country. The FWD sedan that's based on the Saab 9-3 and built alongside the Swede in the company's Trollhatan factory has sold a little over 400 units after being on sale since April, with the month of May being its first full sales month. Trollhatan has slowed its production of the car down to 30 units a week. When the BLS launched the factory was producing that many cars per day. At this pace GM/Saab is on track to produce only 1,560 cars a year, a number well off any of GM's original targets. Despite the slow start, the BLS is still the best selling Cadillac in Europe so far this year. The BLS has also been fairly well received by the European automotive press and dealers are reporting many requests for test drives, so don't count out Cadillac's chances for success in Europe just yet.
Thanks to Ulf for the tip and translating the original source from Swedish.
[Source: Ekonomi & Politik]
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Reader Comments (Page 1 of 2)
emulous1974 1:29PM (6/15/2006)
For some reason, I think the BLS is something that would sell well in the U.S. and help round up the lower end of Cadillacs line-up. It would bring in near-luxury folks that couldn't begin to afford an Escalade.
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JMa 1:37PM (6/15/2006)
from what I have read in european magazines, this car is over priced for what it is mostly because that it brings nothing new to the table when compared to other cars in its class.
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Mark 2:00PM (6/15/2006)
say it's based on the 9-3 is being a bit kind, it basically IS a 9-3, but the cadillac brand carries so little cred over here there's no way anyone in their right mind would buy one over a 9-3, the 9-3 is better looking, too.
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David 2:01PM (6/15/2006)
#1 and #2 have it right.
Europeans aren't looking for a semi-American-looking Saab that costs more and offers nothing new. The boys on Top Gear [Season 8 Episode 2] tore it apart during a trip to a radio studio. The interior is filled with Saab-sourced parts and the overall package didn't impress them one bit. If a European wants a 9-3, they'll buy one. This kind of reminds me of the Saabaru 9-2x failure that we were treated to recently in the States. If GM wants to create a presence in Europe they'll need to brush up on their badge-engineering skills.
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Rob Lowe 2:07PM (6/15/2006)
When is someone at Cadillac going to wake up to the fact that as far as "Standard of the World" or whatever their current delusion is .....that their Cadillac/Saab/Subaru et.al., isn't even remotely competitive in Europe and in fact if it were not for the dumbed down all American taste in cars they would not be be anything but a design language disaster in North America as well.
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Paul 2:08PM (6/15/2006)
I would love to have on of those in the US, i think the 9-3 looks terrible (and is underpowered, stick a 3800 in one of these things)
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Buster Hymen 2:09PM (6/15/2006)
First Gear liked the CTS V's engine but over all said the car is cheap and doesn't compete with it's rivals. No wonder why it's not doing well.
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Jonathan 2:09PM (6/15/2006)
It's a pretty boring car - the only things it has going for it are that it's OK looking, and that it's built in Sweden so it's better quality than any US market Cadillac. Why would anyone buy this when an Alfa 159, Audi A4, or even the Saab 9-3 this car is based on are all around the same price?
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JZeke 2:19PM (6/15/2006)
Tough crowd eh?
Its taken Lexus many tries to even get into that market segement. Its going to take a very special car from any manufacturer to break the "3-series code." That being said I wish GM luck, hopefully they will stick with their guns and evolve this product into something unique and special.
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Matt 2:20PM (6/15/2006)
The US is the world's government. When you're the world's government, and engage in something that portions of the world don't support (war in Iraq), those portions of the world get mad. I think many Europeans are mad at the US right now. As such, I think a Cadillac is the last thing they want to buy.
That said, I get a kick out of #6's comment. Maybe we could put magnetos on it. What about a wooden unitbody? Would that help?
The cure for GM, as it has been for 10 or 15 years, is to stop catering to people like #6, to stop catering to people in Detroit (because they live in the automotive twilight zone), and to start catering to people outside of Detroit.
Ever notice how there is no "Detroit" in Europe? The car companies of Europe are spread all over the place. That gives them diversity, which Detroit desperately needs.
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hue hughes 2:30PM (6/15/2006)
gm is doing the best they can, give them a break!
if the world was full of smart people there would be no one to make fun of.
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PJ 2:36PM (6/15/2006)
I was really disappointed to hear about this move on Cadillac's part. They've done a very impressive job of turning themselves around in the States--the CTS, CTS-V, and SRX are truly world-class cars--and this move seems like a big step backwards in terms of brand management.
That said, the $30K-$40K sport/luxury sedan market is perhaps the toughest in the world for a car to stand out in. IMHO, it's home to some of the absolute best vehicles on the planet--the 3-Series, C-Class, G35, and others offer near-ideal blends of space, comfort, handling, acceleration, and refinement. They'll make nearly anyone happy, from superficial status-seekers to comfort-minded commuters to hard-core driving enthusiasts.
The Saab 9-3's appeal in this class stems mostly from the fact that it's a Saab, and though it's dynamically out of step with the class leaders, it's got the key in the console, the turbocharger, the quirky interior styling... it's all about the charm associated with its brand image.
Take that personality out of the equation, and all you've got left is a compromised also-ran with power flowing through the wrong wheels.
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iQuack 2:48PM (6/15/2006)
The BLS would probably do well in the U.S. where Cadillac has regained much of it's prestige value.
The danger is that making a Cadillac that's too cheap would demean the brand--the CTS is about as low as Cadillac should go in price here.
No surprise that Europeans aren't taken by a re-skinned Saab--better just to buy the Saab which is a brand they know.
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Eric L. 2:57PM (6/15/2006)
The folks at Top Gear drove the BLS and they hated it. But the accompanying segment where Clarkson, May, and Hammond do the radio show, fantastic.
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Howard Kerr 2:59PM (6/15/2006)
While I doubted GM could ever produce a serious competitor to the 3 series, can you really car a bust when it's only been on sale for 2 months?
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Corey W. 3:08PM (6/15/2006)
"....in fact if it were not for the dumbed down all American taste in cars they would not be be anything but a design language disaster in North America as well."
- Ahhhh, you can always find a good laugh on Autoblog...
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Paul 3:10PM (6/15/2006)
number 10, you clearly didnt read the first line of my post "i would love to see one of those in the US" what is good for the goose is not necessarily good for the gander, that in the US with a 3800 would sell well, probably significantly better than a 2.0 9-3.
HOWEVER, that in the EU with what I would want probably would not sell well. My question is why doesnt GM focus on brands that are embraced in market?
Focus on Saab in the EU and Caddy in the US. GM is GM is GM, if you can get market penetration with a brand, the do it, all the funds go back to the same place.
Oh and european brands are spread all over? Like what Saab (GM) and Volvo (which I happen to drive) and Jag and Land Rover(ford)?
GM has never catered to "people like me" I want power and styling, something that is lacking in all GM platforms except Cadillac. The majority sub- forty thousand dollar European vehicles are as well.
number 10 it seems that you hate american cars just because they are american cars, not that european cars (and to a lesser degree japanese cars) are doing anything different.
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Michael Karesh 3:14PM (6/15/2006)
I'd say it's pretty clearly a bust at those rates. The 30/week is probably below sales to deplete inventories, since it seems the monthly sales rate is probably around 300.
Given the cost to develop all-new sheetmetal, they're losing money big time at these volumes.
The largest cost would be in image, though. Saab is at best a near luxury brand in Europe. Creating the BLS tells people without a clear idea of what a Cadillac is that a Cadillac is essentially of the same status as a Saab. Not good for other Cadillac models, because I doubt many Europeans want to buy a $50,000+ Saab, either.
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lansenmeister 4:05PM (6/15/2006)
Let's see, Saab gets bashed for being too GM and the Cadillac BLS gets bashed because it is too Saab. You're all a bunch of jerks.
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Steve 4:22PM (6/15/2006)
The problem really is the sheer choice in this particular segment. Audi, BMW and Mercedes are the obvious choices but for those that wish to wander into something a bit different there's plenty of choice. For those that want reliable and good looking there's Volvo and Sabb. For those that want to-die-for looks Alfa Romeo would be happy to supply something suitably Italian. If you're after superb reliabilty then both Honda and Toyota have upmarket offerings these days (and if the Toyota Avensis isn't good enough there's always Lexus).
Cadillacs main problems in terms of breaking into the European market are pretty simple really (IMO of course): 1) Aside from the look there's nothing new on offer and in every benchmark there's at least one other offering that does better. 2) There's a very limited dealer network. 3) No-one knows what the residual value of these cars will be. 4) The interior, while a major jump forward, still looks very, very poor when compared against the European premium brands.
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