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GM scraps plans for joint Saab/Cadillac sales network

General Motors has scrapped plans to relaunch Cadillac in the UK as a sister company to Saab next year.

It insists the decision, taken as part of Project Olympia – GM's masterplan to return it to profitability by 2003 – was only a postponement. GM had envisaged that in the UK, 15-20 selected dealers would sell both brands, but with separate sales forces. A national sales company based on the existing Saab structure would manage the relationship with them.

The plan was announced at the Frankfurt show in September.

But today a GM spokesman said: “With everything being reviewed and reprioritised under Olympia, it was decided now was not the right time. Another influencing factor is the delay in introducing the new Cadillac, the CTS, which was due next spring, but now will not be launched until later in 2002. The ideal would have been to launch the car alongside the Saab/Cadillac network launch.

“However, the dealer plans are postponed. They will be considered again once Olympia is completed.”

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