Cadillac, Saab to be Roommates in Europe

Saab Automobile and Cadillac, two General Motors Corp. luxury divisions, will make roommates of their sales operations in Europe in an effort to reach more buyers. A new joint management team will be formed to act as landlord, overseeing marketing and distribution for the tenant brands in Europe. Their activities will be modeled around the Saab Unlimited marketing strategy, and they will use the existing

Saab Automobile and Cadillac, two General Motors Corp. luxury divisions, will make roommates of their sales operations in Europe in an effort to reach more buyers. A new joint management team will be formed to act as landlord, overseeing marketing and distribution for the tenant brands in Europe. Their activities will be modeled around the “Saab Unlimited” marketing strategy, and they will use the existing Saab dealer network. Cadillac says it wants to dual its franchise with dealers in Europe's top 100 markets and will offer franchises outside those major markets if dealers are willing to invest in their facilities. Cadillac won't require separate showrooms, but it does want its cars to be in an area separated from Saab. Cadillac General Manager Mark LaNeve says the brands appeal to different buyers, with little fear one will cannibalize another. The two brands are set to launch a raft of new models, and Cadillac is expected to sell about 1,500 cars in Europe this year. Mr. LaNeve is looking to double or triple that volume in the first year of combined operations with Saab. Cadillac expects it will take at least a year to fully form its sales network in Europe, though it already has begun dealer selection.

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