GM's intelligent use of the Cadillac Converj for its Voltec platform

November 10, 5:31 PMElectric Car ExaminerNicolas Zart

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The Cadillac Converj, built on the Voltec platform

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News of GM committing work on the Cadillac Converj is probably one of the most positive bit coming from the beleaguered company.

The gist is putting all of your eggs in one basket is a sure recipe for disaster or a bad omelet.  One of the fundamental problems with GM is, besides a chronic mis-management, a tactic that involves putting all bets on a single car, mainly the Chevy Volt.  In the financial shape GM is in, it is a bet that can mean some success eventually or complete failure very soon.  Working on another equally important car, such as Cadillac's Converj makes a lot of financial and strategic sense.

From Chevy To Cadillac.  If the Volt in itself is a good car technically, many wonder what its market penetration will be.  Certainly by now, no one expects it to save the company, since it will not begin to be profitable at least until the second generation comes out and even then.  GM is wise to use its more upscale Cadillac brand for its Voltec platform.

Cadillac Premium.  A Cadillac is basically a GM with a premium.  And rightfully so, GM has access to a brand following that does not mind paying a little more for luxury.  In this case, GM could make the Voltec platform profitable much sooner than it would with a Chevy badge on it.  A Cadillac Converj would sell for more and recoup the initial investment quicker.

This shows GM is starting to tackle the problem head on.  In the financial shape it is in, it has very little to offer in terms of fuel efficiency and quality.  It would be unfair to say GM lacks in those two departments since it has greatly improved reliability and curbed fuel consumption these last few years.  Betting everything on the eventual success of one car is not what a car maker should try in these financial troubled times.  It looks like GM is ready to use one of its greatest assets, Cadillac to introduce an upscale version of the Volt.  Kudos GM.