GM says farewell to Europe or does it?

The logo for General Motors decorates the entrance at the site of a GM information technology center in Roswell, Ga., Thursday, Jan. 10, 2013. (AP / David Goldman)

The big automotive news from Europe has been the takeover of General Motors loss-making Vauxhall/Opel division by the PSA Group. This has made waves throughout the industry and the future for these brands remains to be seen.

This does not however mean that Europe has seen the last of GM. In fact, the American company will retain a foothold within Europe as the car maker has confirmed it will remain in the European premium market with Cadillac and Chevrolet performance cars, which will be good news for sports car enthusiasts.

Cadillac's European operations have always been separate from Vauxhall/Opel, and given the brand's modest size, coupled with the fact that the premium badge achieves higher profit margins, it could help the reputations of both brands.

Defending the company's decision, Stephanie Brinley, senior analyst from automotive experts IHS, said, "Having some presence is better than having no presence at all. It doesn't have to be high-volume. It has to be profitable."

Cadillac has spent a decade trying to gain traction in Europe against BMW, Mercedes-Benz and Audi despite only having 45 dealerships. Those dealers sold just 781 vehicles in 2016. Even including the performance cars from Chevrolet, the Camaro and Corvette which are sold alongside Cadillac in many dealerships, sales remain lower than many niche brands.

It may be that the success of Ford's Mustang in Europe suggests there's still a viable market for American sports cars with some heritage behind them. GM said it sold more than 1,800 Corvette and Camaro cars in Europe last year.

The company wants to reach 5,000 annual sales in Europe by the end of the decade as the brand attempts to remain a player in the global premium market. Cadillac plans to considerably increase its dealership network over the next few years, they say. GM plans to remain in Europe with Cadillac and the Chevrolet sports cars with similar options for Russia and the Far East.