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Opel pulls out of Russia, GM to focus on Cadillac, 'iconic' Chevys

General Motors is going to realign its priorities in the struggling Russian marketplace, withdrawing its Opel brand and pulling out mainstream Chevrolet models. Instead, the General will take aim at Russia's well-established oligarchy, pushing Cadillac as well as "iconic" Chevrolet models, like the Corvette, Camaro and Tahoe. "This change in our business model in Russia is part of our global strategy to ensure long-term sustainability in markets where we operate," GM president Dan Ammann said in a statement. "This decision avoids significant investment into a market that has very challenging long-term prospects." Russian customers interested in an Opel or mainstream Chevys like the Spark, Aveo (the US market Sonic), Cobalt (shown above), Cruze, Orlando and the like have until December to snap up a car before the brands are pulled. "We do not have the appropriate localization level for important vehicles built in Russia and the market environment does not justify a major investment to further localize." Opel Group CEO Karl-Thomas Neumann said. GM will continue to offer service to customers in Russia. "We can assure our customers that we will continue to provide warranty, parts and services for their Chevrolet and Opel vehicles," Neumann said. Beyond realigning its brands in Russia, GM also announced that it would also be idling the company's factory in the country's second-largest city, St. Petersburg. This is the second time the St. Petersburg factory has been in the news – GM announced that it'd be idled for roughly two months back in February. Scroll down for the official press release from GM. GM to Change Business Model in Russia 2015-03-18 Focus on Cadillac and iconic Chevrolet vehicles Wind down Opel brand and sale of mainstream Chevrolet cars Idle GM Auto manufacturing facility in St. Petersburg Part of GM's strategy to ensure long-term sustainability in global markets DETROIT – General Motors today announced plans to change its business model in Russia. GM will focus on the premium segment of the Russian market with Cadillac and U.S.-built iconic Chevrolet products such as the Corvette, Camaro and Tahoe. The Chevrolet brand will minimize its presence in Russia and the Opel brand will leave the market by December 2015. "This change in our business model in Russia is part of our global strategy to ensure long-term sustainability in markets where we operate," said GM President Dan Ammann.

About 150 Cadillac dealers would rather leave the brand than sell EVs

Dealerships might hamper GM’s plans to electrify its cars. Wall Street Journal tipsters claim that roughly 150 GM dealerships in the United States have decided to drop the Cadillac brand and accept a buyout (ranging from $300,000 to over $1 million) rather than spend about $200,000 to upgrade the dealerships with charging stations, repair hardware and other equipment needed to sell EVs. Many of these dealerships only sell a few Cadillacs per month versus more for Buick, Chevrolet and GMC, but itÂ’s still a significant blow when GM has 880 Cadillac dealers in the country. Cadillac brand leader Rory Harvey confirmed to the WSJ that GM was offering buyouts, but didnÂ’t say how many dealers took them or how much they were worth. The exodus underscores the challenges for conventional car brands as well as the potential advantages for alternatives like Tesla. As brands like GM are heavily dependent on dealerships, they have to please owners to have a chance of strong sales — and thatÂ’s difficult when theyÂ’re not certain about demand, even without the pandemic. Tesla and other direct-to-customer EV makers arenÂ’t bound by physical stores and already have the infrastructure in place for service centers. Dealers might not have much choice in the future. California is banning sales of new gas-powered cars by 2035, and that will likely force automakers to electrify no matter how dealership owners feel. The buyouts now arenÂ’t necessarily temporary, but we wouldnÂ’t rule out some shops having a change of heart as the effective EV deadline approaches. Related video:

Cadillac XT4 crossover reveals its lighting

The upcoming Cadillac XT4 compact crossover has once again been spotted, this time with less camouflage and an update to its lighting. Specifically, the little crossover is sporting production lighting front and rear, and it's sure to make the luxury SUV one of the boldest-looking Cadillacs. Part of the reason for this comes from the taillights. As we suspected from the last set of spy shots, the XT4 will have highly distinctive lights that run the full height of the C-pillar. Though it's a similar design to that of the Escalade, it's made more interesting by the significant forward rake of the rear pillar. Not only that, but that pillar is quite thick, too. The look is actually reminiscent of the old CTS wagon. Moving around the side, the reduced camouflage reveals that the doors and quarter panels are fairly conservative and lacking in many creases or bulges. We can make out the edges of what will likely be black plastic fender flares and rocker panel cladding. Finally reaching the front, we see that the headlights are similar to those of many current Cadillacs, including the recently refreshed XTS sedan. The main part of the lamp starts high up and is slightly horizontal like the Escala concept, but they extend over the fenders and a strip of LEDs descends down the front. A previous report noted the XT4 will be built in Kansas on the Chevy Malibu platform. That means it will be a front-drive-based vehicle likely offering both front- and all-wheel-drive. Under the hood will probably be at least one turbocharged four-cylinder engine, with a second, more powerful upgrade option a possibility. We expect to see the fully revealed model to show up by the end of 2018. Related Video: Featured Gallery Cadillac XT4 spy shots View 15 Photos Image Credit: Brian Williams Spy Photos Cadillac Crossover SUV Luxury cadillac xt4 cadillac xt3