Cadillac will stop selling in half of the European market and cancels the V6 diesel engine

The future of Cadillac in Europe has been clouded considerably by the bankruptcy of the distributor of its models on the continent, the Kroymans Group. The presence of the American brand will be reduced to half of the European market, and its products will only be available in fewer than 12 countries, among them the United Kingdom, Russia and Switzerland, according to a source at General Motors speaking to Automotive News Europe.

The 165 dealerships and 3,500 unsold vehicles that Cadillac has in Europe will be handled by a group of administrators selected by a court. Likewise, the outstanding debt will be protected by a court order that was granted on March 20.

But if that is already serious, it must be added that GM has decided to postpone indefinitely production of the V6 diesel engine that it had been developing since 2007 together with VM Motori because of the lack of financial funds the American group is experiencing. This engine was to be fitted to the CTS and STS and was intended to somewhat improve sales in Europe, since it is a continent where diesel engines hold a large share of the market.

On the one hand, shelving production of the diesel engine will save General Motors costs, but on the other hand it will lose many sales in Europe. Furthermore, with increasingly strict emissions regulations, the lack of an engine of this kind will considerably harm Cadillac.

Source | Motor Authority