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  • William Maley
    William Maley

    By William Maley •

    How Sales In China Are Helping Cadillac

      Increased sales in China is giving Cadillac some breathing room in the U.S.

    China has given Cadillac a bit of breathing room when it comes to sales and working on filling out their lineup. Automotive News reports overall sales of Cadillac vehicles in the U.S. dropped 3 percent, while sales in China rose 46 percent. 

    "We are moving Cadillac from having this very strong U.S.-centric focus to having a global focus. The time will come when we will sell more Cadillacs in China than here," said Cadillac President Johan de Nysschen in an interview.

    With sales going up in China, this gives the brand some flexibility from transitioning a sedan-heavy lineup to adding more crossovers beginning in mid-2018 for the U.S. Currently, the XT5 serves as the brand's sole crossover and best-selling model (2016 saw 39,485 XT5s sold). Not a good thing since light trucks currently account for 60 percent of total U.S. car sales.

    "The majority of our portfolio is exposed to downdraft, while we can't really capitalize adequately on all the opportunities that exist with the swing of demand into crossovers. Now, this will be remedied, of course, over time as we expand our portfolio, but in the meantime it is our reality," said de Nysschen.

    Dealers though don't get to have that breathing space. An 18-month window without any new products is making them very anxious. 

    "We're in the retail business. We live and breathe month to month and weekend to weekend. There is a lot of product out there on the horizon, but nothing very soon," said Bill Wallace, owner of Wallace Cadillac in Stuart, Florida.

    The next product is expected to a compact crossover known as the XT3, due in mid-2018.

    Source: Automotive News (Subscription Required)
    Pic Credit: William Maley for Cheers & Gears

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    G. David Felt

    H'mmm hope they do it right and not cut corners. I would expect China to have more sales than in the US after all 1/5th of the worlds population is there. Be interesting to see how they keep the lights on and doors open with no new product till mid 2018. I hope they have something new to come out this year.

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    Suaviloquent

    Hmm, see, the crossovers that Cadillac will not get for another year....basically the Envision and the new Terrain...are basically the level to expect the XT3 and then maybe XT1 to be interms of luxo.

     

    In that case, I would skip the damn Envision, pony up just a few grand more for the Cadillac XT5, plus get a V6....and also, just get the Terrain cause it'll be way better value than the XT1...And probably look better too...

     

    I think Cadillac not having a full portfolio is basically GM juggling very similar product gaps with brands that have different target audiences but have a similar coverage. 

     

     

     

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    Cmicasa the Great
    On 1/23/2017 at 3:48 PM, dfelt said:

    H'mmm hope they do it right and not cut corners. I would expect China to have more sales than in the US after all 1/5th of the worlds population is there. Be interesting to see how they keep the lights on and doors open with no new product till mid 2018. I hope they have something new to come out this year.

     

     

    But its still disproportionate.. as China has 1.35 Billion people vs the U.S. having 325 Million. Of that amount at least 16 Million people in the U.S. are classified as Millionaires while China has about 1.3 Million classified as such. Think about that for a sec... of China's 1.35 Billion they have 0.1% of their population where as 5.0% of our pop are. That's huge. And I'd be afraid as shit that one day the non-millionaire population revolts 

    Also.. Mid 2018 is literally next year. They can certainly continue growth by simply marketing what they already have. It will be small growth, but growth nonetheless. The market is not what it once was 20, 30, 50 years ago. Cadillac sales are lagging behind competitors because it is in need of the necessary vehicles to compete in all areas they do. Seven (7) Vehicles versus Mercedes having sixteen (16) for instance.. and I believe 8 of those Mercedes are SUVs, the hottest selling type of vehicle in any segment, but that does not mean it can't promote the hell out of the Escalades and XT5.

    In truth this could actually work out perfectly for Caddy in a number of ways. How about being able to market the brand and up the prestige even further? Before the new product comes out. It has done a fantastic job so far re-awaking people to its resurgence. 

     

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