Cadillac looks for a fresh start in Europe; Geneva show notes

Two new models and a fresh styling direction will try to kick-start Cadillac

sales in Europe for the third time in 15 years as the General Motors luxury brand again hopes to crack Europe's premium-car market.

"The only thing you can do is try, try and try again with Cadillac in Europe," said GM CEO Dan Akerson.

The front-drive XTS sedan concept from the Detroit show in 2010 was rolled out to a European audience for the first time at Geneva, giving a flavor of the new, softer styling direction that Cadillac suggests will better appeal to European buyers.

Many observers say that the "art and science" styling direction created in the late 1990s has now run its course and should be dramatically overhauled.

Akerson said the XTS would slot above the CTS. A smaller sedan is also planned, to make a more credible European range for Cadillac.

But other GM sources said that key powertrains such as a longitudinally mounted, rear-drive four-cylinder diesel still don't have a place in the future-product pipeline. These engines provide the bulk of sales for Europe's premium car makers.

"We can't do everything all at once," said Jeff Lux, Opel/Vauxhall's powertrain boss.

Akerson also admitted that the strength of Europe's premium marques "make[s] it very tough" for Cadillac to succeed in Europe.

He said the sell-off of Saab and previous failures to establish Cadillac left GM in Europe with no luxury presence. "It's a good question what we're going to do in the European luxury market."

Meanwhile, Vauxhall won't put the range-extender hybrid Ampera into production in Europe until the second-generation model arrives around 2015 or 2016. The future version also will be less expensive to make, easing the investment case.

"The battery, the electrical system, will all be lower cost," says Opel chairman Nick Reilly.

Reilly said he has been surprised by the popularity of the Ampera with private buyers. Opel and Vauxhall have opened the orders ahead of deliveries in October, and 850 people have put down deposits.

"Personally, I thought we'd see more demand from fleets, but private buyers are strong," added Reilly.

Geneva show notes

-- Bentley will limit production of its 202-mph Supersports special edition--marking a recent ice-speed record--to 100 units. Revised intakes boost power by 10 hp, to 631 hp.

-- Nissan's Paddington studio is an expensive facility, but design chief Shiro Nakamura says that its excellent record for producing hit cars such as the Qashqai and the Juke assures its future: "If you have good output, no one worries about the cost."

-- A rumor that British designer Simon Cox, formerly GM Europe's advanced design chief, created the Nissan Esflow EV sports coupe was squashed. "I know Simon, but this wasn't his car. It was created in Japan, by our designers," Nakamura said.

-- GM has been studying the effects of oil-price increases and estimates a peak of $160 to $170 a barrel--thanks to global political instability or a supply shortage based on heavy demand as the recession ends--is possible. "We're not looking at $200; that would be crisis level," Reilly said.