The Cadillac Escalade is a car that is slated for expansion into several right-hand drive markets. The foresight of a decade ago was put on hold because of the global financial pressures. Now, Cadillac and its parent company General Motors are considering whether the plans to venture into several markets which rely on right-hand drive should be restarted. In order to provide an optional RHD conversion cadillac escalade, a new strategy would be necessary from GM and Cadillac.
The key component of any strategy to make an impact on markets which are traditionally and primarily RHD markets is to play the steering wheel on the right-hand side of the vehicle. Currently, Cadillac does not have this design in any of its vehicle lines. So, the strategy which is expected to be followed by the luxury car company is to build its portfolio of future vehicles with the capability to utilize RHD.
As an adjunct to that plan, the company's strategy seems to involve a serious entrance into the European market around the year 2021. Today, the company has little presence in the market on the Continent today. Available RHD markets include the United Kingdom, and of course, Australia.
A spokesperson for the automaker has indicated that the European strategy and the RHD strategy are very closely related. In order to significantly impact the European market, the company would need to see more growth in volume than is possible to deliver at present. Once the company moves into Europe, it has the opportunity to offer RHD options. It is also true that vehicles with right-hand drive presents opportunity to make their presence known in other markets.
The manufacturing premise known as economies of scale shows that establishing RHD for the United Kingdom markets allows for opportunities to place vehicles with the same design characteristics elsewhere around the globe. The strategy of ensuring that future Cadillac models have the ability to support the design is a key part of the plan. This pre-planning will allow the brand to quickly spread across markets that require this type of vehicle.
If and when the roll-out of RHD versions of the Escapade and other Cadillacs occurs, it should be done by providing the dealer network a full selection of vehicles, rather than just one car at a time. Another factor in play is the fact that North America and China are the brand's largest markets by volume and the brand wants to hold onto that market.
Expansion of the European footprint is only possible by bringing the right products to the market. The priority for Cadillac at present is to create two volume hubs for the vehicles globally, through the United States and China. The other markets are also important, but it is necessary to build up the portfolio of products. It is not possible to invest in all the vehicles unless the volume accrued in the two biggest markets is unlocked.
The priority for the car firm is to achieve healthy sales volume in China and in North America, thus allowing for the RHD market to expand elsewhere in the world. The expectation is that synchronization of the portfolio expansion will be slated for the early part of the 2020s.