The rationale behind General Motors’ return to old European haunts with new Cadillac cars.
It has been an interesting and pivotal month for Cadillac, a storied luxury brand looking to return to a place of prominence on the world stage. Key to that goal were two pivotal events in France: the opening of a Cadillac City customer center in Paris and three hypercars that raced in this year’s 24 Hours of Le Mans endurance race. Both milestones have an impact on the Cadillac you might buy in the U.S., believe it or not, and here’s how.
The first Cadillac raced at Le Mans in 1950 and Cadillac returned in 2023 to the famed Circuit de la Sarthe after a 22-year hiatus, punctuating the comeback with a third-place finish. Cadillac Racing was in the hunt for much of the famed 8.5-mile race this year but did not reach the podium. The cars finished 7th and 15th; the third car was forced to retire due to a mechanical issue. But the team left with its head held high and will work to come back stronger next year. Win on Sunday, sell on Monday is the motivation behind the massive effort and investment it takes to compete at this level of engineering and motorsports.
The return to Le Mans is paired with the decision to sell Cadillacs again in Europe. Cadillac stopped selling vehicles in the region in 2017. There are still some XT4s available but they are imported through a distributor. Cadillac is returning to Europe with its new lineup of luxury electric vehicles, starting with the Lyriq electric midsize SUV, to be followed by the entry level 2025 Cadillac Optiq compact electric SUV. EVs are the future of the brand whose goal is to have an all-electric lineup by 2030. Europe is the largest EV market after China.
This second bite at the European apple comes with another strategic pivot: online sales via a new direct-to-consumer sales approach that, if successful, could become more prevalent. And success or failure in Europe impacts budgets and spending on future products for a showroom near you stateside.
Why Will Europeans Buy Cadillacs Now?
Vehicles with the Cadillac crest, distinct styling, tech, and race pedigree should speak to European buyers today, says vice president Global Cadillac John Roth. With production glitches and software snafus behind it, current sales of the Lyriq in the U.S. show the brand can outsell EVs from Mercedes-Benz, BMW, and Audi, he says. The smaller and more affordable Cadillac Optiq should prove popular in Europe and the flagship Celestiq bespoke sedan shows Cadillac can be the standard of the world once again.
Cadillac has always been about performance and racing, says Brandon Vivian, executive chief engineer for Cadillac. Engineers learn a lot from the Le Mans endurance race and it all makes its way back to street vehicles. The V-Series.R hybrid race car with its 5.5-liter naturally aspirated V-8 developed in-house and tuned to sound like a Cadillac, represents the start of the fifth generation of Cadillac V-Series. Cadillac methodically moves people between the brand and the racing team; the same people design both the street and race cars; powertrain teams look at each other’s teardowns; the same analysis teams assess both. The reciprocity breeds efficiency which helps everyone.
Consumers notice, says Vivian. Half of Gen X and Y consumers surveyed said racing builds trust in the brand and wins consideration. Every product has to earn the V-Series badge. Part of that is competing against your peer group and winning. Racing is a proof point.
Making a Better Car
Racing makes cars better on and off the track. Returning to Le Mans in 2023 provided 24 hours of data on three cars. That information guided improvements to optimize the cars for 2024 for that all-important win, says Laura Wontrop Klauser, GM’s Sports Car Racing Program Manager. The tech transfer is part of why we race, she says. “We’re going for top steps. We want history for the brand and to show what Cadillac can do. If ‘win’ is in every headline, people will start thinking about Cadillac.”
The team returned to Le Mans this year with a different mindset. The crew in the garage were calmer because they had done it before. But the race was more cutthroat with a larger field, more competition with 23 hypercars from teams like Ferrari—which became a back-to-back winner, veteran Toyota, and Porsche joining Cadillac as the ones to beat.
The cars definitely evolved from 2023, says veteran racer Scott Dixon. Teammate Sebastien Bourdais, a Le Mans native, said he was armed with experience and better knowledge of the car and its systems which proved vital in a tricky race peppered with rain and the longest safety-car period in Le Mans history. Their car was forced to retire in the latter part of the race with a mechanical problem.
Back to Europe With New Products and Sales Approach
GM sold vehicles in Europe since the 1930s with its Opel and Vauxhall brands. Unable to turn a profit, it sold the brands to the PSA Group in 2017. Today they are part of Stellantis.
GM first announced plans to reestablish a presence in Europe in November 2021, creating a new European headquarters in Zurich, Switzerland, focused on a direct-to-consumer sales strategy for the new lineup of EVs starting with the Lyriq. The 2025 Optiq will be the entry point and gateway to the brand with production to begin in the third quarter for delivery by year end. Cadillac will start taking orders in Europe next year for the flagship Celestiq. It is the symbol Cadillac has the confidence and skill to make an ultraluxury flagship sedan. With a shape unlike anything on the road anywhere, it tells the world Cadillac is serious and should be considered, Vivian says. The European portfolio is also expected to include the three-row Cadillac Vistiq SUV and the fullsize Escalade IQ.
The new sales method means foregoing traditional dealerships for customer experience centers where consumers can see models and receive help ordering them. Partners will be contracted to provide service. The first Cadillac City Experience Center opened in Zurich in October 2023. In November Cadillac launched online sales in Sweden with pop-up test-drive centers. Online sales of the Lyriq launched in France in March and Cadillac City in downtown Paris opened to the public May 30. Germany sales started in May, offering test drives from pop-up locations in Berlin, Munich, and Cologne. Cadillac City locations will be added in Frankfurt and Hamburg this fall. Cadillac sales will launch in the U.K. next year. Righthand-drive versions of the Lyriq will come from the same Spring Hill plant in Tennessee. They will also be exported to Australia and New Zealand next year.
Inside Cadillac City Paris
Plans for Cadillac City Paris go back about 18 months when the site was selected and renovations began. Today there are two Lyriqs and an Optiq on display. Go up the curved marble staircase and there are lounge areas, a children’s play area, and tables, tablets and staff to spec and purchase a new Lyriq online. The facility also has displays and exhibits for the public to learn about Cadillac’s history and products. Cadillac has the strongest heritage so the focus is on it first, says Alexandra Smedley, GM Customer Care and Aftersales Director for Europe. As Cadillac’s presence in Europe expands, other brands could make a return.
People know Cadillac in Europe and see it as an American luxury brand but are not sure that that means, says Rory Harvey, who was head of Global Cadillac when the hypercar was unveiled in 2022 and Cadillac Racing said it would return to Le Mans after 22 years. Harvey was subsequently promoted to GM Executive Vice President and President North America and eight months later shifted to President of Global Markets. GM needs to make Cadillac relevant to European consumers. He thinks the new portfolio has the right size and styling and will resonate.
All the new Cadillac EVs were developed to be sold globally and are aimed at Gen X and Gen Y buyers who have 70 percent of the wealth, says Vivian. It is why there is such a focus on large screens, sophisticated infotainment systems and other tech they use. The result: striving for the podium at Le Mans and to appeal to a broader global market contribute to a stronger and more appealing lineup as Cadillac reinvents itself and aspires to once again be referred to as the standard of the world. Coming to a showroom near you.