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Cadillac is planning a return to Europe, after previous Dutch-based importer Kroymans got into financial difficulties following a collapse in demand for new and used cars.



GM Europe is doing it in-house this time around, though.  A new organisation, Cadillac Europe, has just been set up to take care of importation, distribution and marketing.  It will operate only in key markets, but those markets have yet to be revealed.



The range is to be presented at March’s Geneva International Motor Show.  The striking CTS Sport Sedan, familiar from the Kroymans era, will be the core model.

It will be joined by the distinctive CTS Coupe.  This brand new model is due to begin sales in North America this summer, with a European on-sale date scheduled for the autumn.  Both Sedan and Coupe will be available in high performance CTS-V specification, powered by a 556 bhp 6.2 litre V8.





The third member of the CTS family is the Sport Wagon, which is expected to cross the Atlantic in time for the 2011 model year.





Environmentalists will be delighted that the Escalade Hybrid is to also make it to Geneva.  Powered by an electric motor as well as its 6.0 litre petrol V8, Cadillac is claiming its Two-Mode Hybrid System reduces fuel consumption by 40%.



Sounds great, although the standard vehicle’s thirst for fuel should mean that even after such a big improvement economy will still be relatively terrible.  It’s doubtful that G-Wiz owners will rush to trade-in.





So what are Cadillac’s chances of success in Europe?  Stating the obvious, its big challenge is to persuade buyers out of the established competition.  For instance, how readily are drivers going to swap their Jaguar XF, BMW 5 Series or Lexus GS for a CTS?



Some will certainly value the exclusivity that comes with a low volume brand.  The driving experience of the CTS shouldn’t be too bad, helped by it having either rear or all-wheel drive, and equipment levels will doubtless continue to be attractively generous.



But three key issues could mean Cadillac struggles.

 

The first concern is how to avoid catastrophic depreciation.  Unchecked, residual-based leasing costs will be totally uncompetitive, putting most business users off pronto.  During its earlier forays, Cadillac’s resale values didn’t have the best reputation in the UK market.  This is ably demonstrated by a UK franchised dealer currently trying to offload a CTS 2.8 V6 Sport Luxury with only 25 miles on its odometer.  The asking price?  Just under £20,000.



The second problem is the lack of a diesel CTS, a critical omission in the European market.



The third matter is more subjective: image.  Cadillac has always been a bit of a mystery for Europeans, with perceptions of a typical owner usually focussed on two extremes - the octogenarian retiree bumbling about in Florida, and the pimp using his car for business purposes.  Neither is particularly appealing.



All hurdles that mean it’s somewhat ironic that GM is now trying to establish a luxury brand in Europe, given it is still in the throes of disposing of Saab.  At least it’ll have plenty of mistakes to learn from.