The investment in Cadillac and Lincoln signifies an upturn in the fortunes for both brands – and a headache (be it a sore head or a migraine) for the opposition.
I asked Mercedes boss Dieter Zetsche what he thought of the future arrival in Cadillac in Europe, and while it's fair to say hardly looked like he was quaking in his boots, he was gracious.
"I'm surprised the German three have become so big in the past 20 years to be honest," he said. "There is opposition from Jaguar and the likes of Saab and Lincoln have been there, but to have a big three is enough to drive the market. Still, to have more opposition is welcome. We want success because of our strengths, not because there's no opposition, so competition is good."
With that in mind, I asked a senior player at one if the big three premium makers the same question. Off the record, his answer was far less diplomatic. "Cadillac in Europe?" he laughed. "They have no chance of doing anything but losing a lot of money."
Sadly, I tend to agree. I can't see Cadillac rattling many cages, especially in the UK. The premium market is about product and consumer trust in that product, and Cadillac just doesn't have the required level of authenticity in the minds of buyers about to part with large lumps of money.
What do you think?