Cadillac's Australian Market

The global meltdown in auto sales has taken its latest victim as GM's Cadillac division has postponed its Australian debut indefinitely. The American luxury brand was initially supposed to be introduced in Australia during the last quarter of 2008, but GM postponed the launch for this February. Now, GM's execs decided that due to the "downturn of the domestic automotive market", it made no sense at all to launch Cadillac in Australia at this time.

"There is only one chance to launch this brand in Australia and in these challenging times, we believe we couldn't give it the best chance of success," said GM Holden Chairman and Managing Director Mark Reuss. "This was a difficult decision but the only viable decision."

"There is no doubt the Cadillac CTS is a magnificent vehicle and the response since it was revealed at the Australian International Motor Show in October has been very positive. But obviously since then the market for new cars has continued to deteriorate, the broader economic environment difficulties remain largely unchanged and the exchange rate has worsened for imports," Reuss added.