Cadillac Hoping Russian Demand Becomes Strong Like Bear

If Cadillac’s top boss, Johan de Nysschen, had his way, The Hunt for Red October would feature a scene in which Capt. Vasili Borodin describes his dream of seeing the United States in an Escalade, not an recreational vehicle.

While General Motors’ luxury division counts on American and Chinese buyers to keep it flush with cash, there’s still room in the fold for other markets. Assuming, of course, those citizens have a willingness to cast off deep-seated consumer habits and, perhaps, prejudices.

After dropping pedestrian vehicles for an all-prestige lineup, GM’s conquest of the Russian luxury market hasn’t yet occurred, though it’s still early days. Sales are looking up. With a new partner in tow, Cadillac feels confident it can muscle out the Germans on the streets of Moscow and St. Petersburg.

In 2015, amid a steep Russian economic slump, GM pulled out its low-end models, leaving only the Cadillac brand and high-value Chevrolets like the Corvette, Camaro and Tahoe. At the time, de Nysschen saw a bright future in the country, with plans for reaching 10,000 sales per year.

According to Wards Auto, that plan remains afoot. The automaker recently sealed a deal with Avilon Group, Russia’s top auto retailer, to open a new Cadillac dealer in Moscow. Others should follow as de Nysschen pursues his goal of expanding the network from 12 dealers to 17, backed with a marketing push.

Dodgy economy notwithstanding, there’s another serious roadblock facing GM in Russia. When well-to-do Russians upgrade their ride, it’s the Big German Three’s sale to lose. Mercedes-Benz, Audi and BMW rule the premium Russian roost. According to Russian Ministry of Industry and Trade analysts, Cadillac just doesn’t project the same level of premium essence, meaning the division must win hearts and minds before rubles roll in.

As it stands now, Cadillac is on the rebound from the depths of the Russian slump. Its best sales year remains 2011, when it sold 2,226 vehicles. Still, the brand posted a 22-percent year-to-date sales increase over the first half of this year, with June sales rising 54 percent compared to the same month last year. Sounds great, but it only spells 726 sales over the course of six months. Compare that to Mercedes-Benz, which sold 17,726 vehicles in Russia over the same time period. BMW sold 14,571, while Audi unloaded 8,408.

Russian Roulette, or a smart, long-range game plan? That’s for the big minds in Detroit and Manhattan to decide.

[Image: General Motors]