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GM winding down Chevrolet brand in Europe

If you've taken even a cursory look at GM's European strategy and wondered how it can target the market there with both Chevrolet and Opel/Vauxhall, you're not alone. In fact General Motors itself has found it difficult to justify the two-pronged approach. That's why it's essentially pulling Chevy from the European marketplace.
Instead of trying to ply European buyers with what are mostly former Daewoo products rebadged as Chevys, GM will now let Opel (or Vauxhall in the UK) represent its mass-market aspirations. Chevrolet will keep its presence in Russia and other former Soviet markets, and will continue selling certain niche products in Eastern and Western Europe. The Corvette, for example, has long been sold in Europe through Cadillac dealerships, which for its part is currently "finalizing plans for expanding in the European market".
While the shift in strategy is expected to help GM get a stronger foothold in the European market in the long run, in the short term the restructuring will cost it dearly: between $700 million and $1 billion, according to its own estimates, split between the last quarter of this year and the first half of the next. Jump into the full press release below for more.

Cadillac exec realizes ELR pricing was stupid high

At least one Cadillac exec has finally started to come to terms with something we knew all along: the initial $75,000 price for the ELR plug-in hybrid was way too high. The bad decision in part led to the model selling just over 1,000 units last year. Company marketing boss Uwe Ellinghaus recently gave an interview to Bloomberg where he discussed what went wrong. "The MSRP was, indeed, a mouthful," Ellinghaus said to Bloomberg. "We overestimated that customers would realize our competitors were naked at that price." People balked at the ELR's price from the very start, and dealers were receiving $5,000 at one point just for getting customers to test drive the PHEV. Later, some incentives for buyers were as high as $14,000. Cadillac planners saw a conundrum when it came to the ELR's price. Too low of a figure was thought to bring the model close to the Chevrolet Volt, and $75,000 was also believed to signal Caddy's PHEV as something special. "We just wanted to make this a statement for the brand of how progressive we are," Ellinghaus said to Bloomberg. Cadillac is now working to rehabilitate the ELR's reputation with a host of updates for 2016. Buyers get a 25-percent boost in powertrain output, additional standard features, and the whole package comes with a $9,000 drop in price. The tweaks should help the luxurious PHEV make a better second impression. Related Video:

Cadillac ad boss is happy controversial Poolside TV ad created debate

Remember Cadillac's controversial commercial for it ELR plug-in hybrid? Did you find it provocative? If so, that's a good thing according to the brand's advertising director, Craig Bierley. First aired during NBC's coverage of the Olympic opening ceremony, the minute-long spot returned to the tele again this weekend, bookending the Academy Awards on ABC. Titled Poolside, the bit was meant as "brand provocation" and whether you enjoyed it or not – sentiment is said to run 3:1 on the pro side – we can probably all agree it fulfilled its role as such. If you were one of those who felt the ad erred on the side of nationalistic consumerism (or what have you), your anger might be somewhat assuaged after reading this article from Advertising Age in which Bierley addresses most of what he believes are misconceptions about the message. For one, the spot isn't aimed at the One Percent, just those who make $200,000 a year. Or, as Craig Bierley, Cadillac's advertising director, calls them, "people who haven't been given anything." Bierley told Advertising Age that the spot doesn't celebrate workaholicsm, instead, "We're not making a statement saying, 'We want people to work hard.' What we're saying is that hard work has its payoffs.'" While our commentors seemed mostly to enjoy discussing the value proposition that is (or is not, depending on your point of view) the Cadillac ELR, the majority appeared to enjoy the commercial. If you were one of those offended, however, let us know if your opinion has changed upon reading Cadillac's defense. If you don't remember what all the fuss was about, scroll below to take another dip in Poolside.