Buick is GM's star in China, but Cadillac isn't far behind. Last year, Cadillac sales rose 17 percent to almost 80,000 vehicles. Consulting company LMC Automotive says the brand is poised to move ahead of Lexus in the country.
Where can Cadillac attribute this rise in sales in China? Young buyers. The luxury brand says the average age for a buyer is 34 years old - slightly more than half of the average age of a Cadillac buyer in the U.S.
"In China, young buyers already dominate the luxury market. Since Cadillac is a relative newcomer ... it was far easier to begin to cultivate the desired positioning for the brand from the get-go," said Cadillac President Johan de Nysschen to Reuters.
Not surprisingly, Cadillac wants to take advantage of this. de Nysschen has set a goal of selling 100,000 Cadillacs in China this year. To pull this off, GM opened its first dedicated factory in China for Cadillacs. This move allows buyers to not pay a 25 percent import tax. Cadillac will also stop designing separate long wheelbase cars for China. Instead, the luxury brand will do a one global "right size" design.
"You will see a softening of some of the hard edges, and more three-dimension styling on the side of the car," de Nysschen said, but cars will still be "instantly recognizable as Cadillac."
Source: Reuters
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