QOTD: Could Cadillac Make It on Its Own?

About three years ago, a friend of mine who lives in Dallas called me to ask my opinion on cars he should buy.

He was cross-shopping a C-Class and 3-Series before the inevitable question came up:

“What do you know about the Cadillac ATS?” he asked.

“I like them. It’s a good start for Cadillac,” I said.

“But isn’t it just a glorified Cavalier or something?” he replied.

Joe (that’s his real name, screw protecting the innocent) may not know as much about cars as the rest of you, but he’s indicative of a typical car buyer who may not be well versed in verticals, corporate structure or Johan de Nysschen. But he does know enough to know there’s a relationship between Cadillac, Chevrolet and GM

The Cadillac CEO yesterday said the luxury arm of General Motors would have more autonomy in the next few years, including sales reporting and presumably profits that it would like to keep behind the Cadillac family crest.

I didn’t bother going into where the ATS came from, or why it’s around, global sales goals and overall platform. Cadillac hasn’t outrun the Cimarron shadow, according to Joe.

In that respect, a further separation from GM would help the brand succeed in becoming a larger, global luxury carmaker.

But it’s undeniable that Cadillac wouldn’t be where it is today without the Escalade — firmly a GM product, first — and the profit it provides. Furthermore, Cadillac gains much from GM’s economy of scale and global reach. On its own, Cadillac wouldn’t have direct access to the same resources without GM — even if it were to contract build every single car from GM.

It’s clear that GM wouldn’t be as profitable without Cadillac, but is it possible that GM is what’s holding Cadillac back from sales success in Europe and beyond?

As de Nysschen pushes Cadillac further from the GM model, a split could come into view, but for Cadillac — a brand that was weaving on the ropes only a few years ago — would breaking away from the mothership be a good thing?

Would Joe, our new luxury car buyer, be tempted into buying a new Cadillac if he knew the flagship luxury brand for GM was a brand all by itself?