GM delays Australian Cadillac launch indefinitely

General Motors today announced that the introduction of Cadillac into the Australia market had been delayed indefinitely. Confirming the bad news was the boss of GM’s Holden subsidiary, Mark Reuss, who said the downturn in the local automotive market plus the broader global financial situation made it commercially unviable to launch a new brand.

“GM Holden was faced with making a significant investment to launch a new, niche brand into a tough market,” Reuss explained. “There is only one chance to properly launch this brand in Australia and in these challenging times, we believe we couldn’t give it the best chance of success.

The carmaker first announced Cadillac’s return to the Australian market as far back as 2007, and as recently as the Sydney Motor Show last October GM was teasing the Aussie market with the local debut of its 2009 Cadillac CTS.

Holden will instead focus on developing a local version of the Chevrolet Cruze, which is scheduled to enter production at the carmaker’s Adelaide plant in late 2010. GM’s other brands currently sold in Australia, Saab and Hummer, will remain for now though their fate may change pending the outcome of the General’s restructuring.

Today’s announcement comes less than a week after GM vice chairman Bob Lutz also revealed that further developments of Holden’s Zeta RWD architecture won’t be included for the U.S. market, confirming that the current Pontiac G8 and upcoming Chevrolet Camaro would be the last of the Zeta-based cars heading Stateside.