General Motors’ premium brand is determined to boost its worldwide sales and to bring the marque closer to the top.
Cadillac has quite a gap to recoup, as its sales are even behind German luxury rivals such as Volkswagen’s Audi and Daimler’s Mercedes in the US market. The brand is also a newcomer to the Chinese auto market, where the luxury segment is increasing well above the overall trend and competitors have a solid headway. But GM’s unit plans to revive the name and profits as well and it has set a 10-year time frame to achieve its goals. “We’ve got about a 10-year runway to get this brand to where it is making the kind of overall contributions to General Motors profitability that CEO Mary Barr expects from it,” Cadillac President Johan de Nysschen told Reuters in an interview on the sidelines of the Beijing Motor Show. Cadillac is targeting 25 percent growth in China to sell more than 100,000 vehicles this year.
To capitalize on the growing trend of SUVs and luxury cars, General Motors recently said that about 40 percent of the new vehicles that it intended to launch in China over the next five years would be sport utility models and MPVs, while Cadillac brought 10 new and refreshed models. Even if the automaker’s deliveries in China declined 0.6 percent in March from the previous year, Cadillac sales last month rose 14 percent from a year earlier to 7,588 units. The American luxury brand launched its new CT6 sedan at the end of January and the XT5 luxury crossover in April 12, both models build at SAIC-GM’s new plant in Shanghai.