After years of absence, General Motors is making another attempt at conquering Europe, starting with Cadillac and focusing on electric vehicles. The American giant, the largest among all overseas automakers, is relying on its $35 billion investment in advanced technologies, specifically the Ultium platform, which is technically superior to any European offering except for Volvo and Zeekr’s SEA platform.
However, betting on electric vehicles in Europe—where, outside of Scandinavia, EVs and cars in general are struggling—might not be the right choice. Early results seem to confirm this concern.
Cadillac’s Strategy in Europe
Currently, Cadillac has launched sales in Germany, France, Switzerland, and Sweden with its large SUV, the Lyriq. Initial results, however, have been modest: as of October, only 167 units have been sold, placing the American flagship 12th out of 14 in the premium large SUV segment. The next model planned for the European market is the Optiq.
At the show, Pere Brugal, President and Managing Director of General Motors Europe, stated that Cadillac and GM are determined to stay in the European market for the long haul. Speaking to Automotive News Europe, Brugal emphasized that “Cadillac is in Europe to stay.”
The Optiq could indeed change the game, as it is better suited to the European market, which is less inclined toward very large vehicles like the Lyriq. Despite its challenges, Cadillac has several strengths to rely on—starting with its technology.
Cutting-Edge Ultium Platform
The Ultium platform, on which Cadillac’s EVs are built, is among the most technologically advanced in the world. It features a modular layout integrating the Ultium battery and Ultium Drive units, which include the powertrain, battery management, and inverter. Additionally, it boasts high-voltage pouch cells, supporting ultra-fast charging on the one hand while ensuring long driving ranges on the other.
According to Jean-Pierre Diernaz, Chief Marketing Officer of Cadillac Europe, the brand’s premium positioning makes it less susceptible to price fluctuations, even in markets where EV incentives are limited or nonexistent. “The more premium a brand is, the less it is exposed to price elasticity,” Diernaz observes.
While examples like Polestar and Jaguar might suggest otherwise, it’s worth noting that Cadillac has only recently entered the European market—and not with its most suitable vehicle. The Optiq, on the other hand, is much more promising: measuring 4.8 meters in length, it offers 300 horsepower, an 85 kWh battery with approximately 500 km of range, and the ability to regain over 126 km of range in just 10 minutes. If priced competitively, it could find significant success.
