GM pledges $12 billion for Cadillac’s development image

General Motors, the largest US automaker, has seen its luxury brand Cadillac take a hit last year, with sales dropping in a very healthy overall auto market and following spectacular growth for other premium automakers.

With sales receding 6.5 percent last year, Cadillac was outrun by Germany’s Audi and relegated to the fifth overall position in the luxury segment even as new top management has started developing a strategy to reverse the slump. The GM parent company has now pledged $12 billion to introduce eight new models by 2020 and another two over the next decade, said Johan de Nysschen during the Detroit motor show. The brand’s focus will be the surging crossover sport utility vehicle segment – Cadillac has just one entry there, the SRX, while rival automakers such as BMW or Audi have five and three, respectively – and three SUVs will form the bulk of the expansion.

According to de Nysschen, two crossovers will slot below the SRX and one above, while the brand will also receive the much anticipated flagship model. Because it failed to impress customers and industry experts, the plug-in hybrid ELR, based on the first-generation Chevrolet Volt, will be sidelined, with no plans for an upcoming successor.

Uwe Ellinghaus, chief marketing officer for Cadillac further disclosed that the brand’s style showpiece will be a future sedan planned to top off the lineup above the announced CT6 sedan, which is scheduled to reach the dealerships sometimes this year. The CT6 sedan is envisioned as a rival for BMW’s 7 Series and the Mercedes S Class – so maybe the new range topping model is going to take on the recently unveiled Mercedes-Baybach subbrand.

Via Bloomberg