• Sign in to follow this  
    Followers 0

    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

    0


    Sign in to follow this  
    Followers 0


    User Feedback


    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.

    0

    Share this comment


    Link to comment
    Share on other sites

    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. 

     

     

     

    0

    Share this comment


    Link to comment
    Share on other sites
    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. 

     

    1

    Share this comment


    Link to comment
    Share on other sites


    Your content will need to be approved by a moderator

    Guest
    You are commenting as a guest. If you have an account, please sign in.
    Add a comment...

    ×   You have pasted content with formatting.   Remove formatting

      Only 75 emoticons maximum are allowed.

    ×   Your link has been automatically embedded.   Display as a link instead

    ×   Your previous content has been restored.   Clear editor




  • Popular Stories

  • Today's Birthdays

    1. Northstar
      Northstar
      (29 years old)
    2. redfox
      redfox
      (74 years old)
  • Similar Content

    • By William Maley
      It is unlikely that the Focus RS will be the only Ford model sporting the RS badge, although which models will follow have been up for debate. The chief of Ford Performance has hinted that the brand's crossovers could go under the RS treatment.
      "I think customers love performance. I think the definition of what that means for an SUV might be different than what it means for a Focus or for a Fiesta. But I think that we’ve seen, even in the US and globally, that people like aggressive-looking cars, they like sporty, they want the power and pick-up and engine improvement, so I think the answer is yes. SUV customers would appreciate performance, for sure," said Dave Pericak, head of Ford Performance to Car Dealer Magazine.
      Pericak goes on to say that he believes there are "no real credible (performance SUVs)." (Though we are sure the likes of BMW, Mercedes-Benz, and Porsche would like to have a conversation with him about this -WM).
      "If you look at the SUV market right now, there aren’t too many credible performance SUVs out there. here are people who have made partial attempts at it and there are different things that have happened, but there are no real credible ones. So, I think that’s an area of some opportunity, for sure."
      Car Dealer Magazine speculates that the Kuga (Escape to us) could be the most likely candidate, followed by the EcoSport and Edge.
      Source: Car Dealer Magazine

      View full article
    • By William Maley
      It is unlikely that the Focus RS will be the only Ford model sporting the RS badge, although which models will follow have been up for debate. The chief of Ford Performance has hinted that the brand's crossovers could go under the RS treatment.
      "I think customers love performance. I think the definition of what that means for an SUV might be different than what it means for a Focus or for a Fiesta. But I think that we’ve seen, even in the US and globally, that people like aggressive-looking cars, they like sporty, they want the power and pick-up and engine improvement, so I think the answer is yes. SUV customers would appreciate performance, for sure," said Dave Pericak, head of Ford Performance to Car Dealer Magazine.
      Pericak goes on to say that he believes there are "no real credible (performance SUVs)." (Though we are sure the likes of BMW, Mercedes-Benz, and Porsche would like to have a conversation with him about this -WM).
      "If you look at the SUV market right now, there aren’t too many credible performance SUVs out there. here are people who have made partial attempts at it and there are different things that have happened, but there are no real credible ones. So, I think that’s an area of some opportunity, for sure."
      Car Dealer Magazine speculates that the Kuga (Escape to us) could be the most likely candidate, followed by the EcoSport and Edge.
      Source: Car Dealer Magazine
    • By William Maley
      The only Audi crossover that has the vaunted RS badge is the Q3, but that is going changing in the near future.
      Speaking with Car and Driver, Audi Sport boss Stephan Winkelmann said there would be more RS-badged crossovers in the near future.
      “We don’t have a big lineup. The right cars means having them in segments that are growing, and also segments that are equally distributed in the regions of the world. Therefore a CUV shift is due; we are working on it, and you will see it coming.”
      Sources have previously said that the Q7 and upcoming Q8 will get the RS treatment. There is also the possibility of an RS Q5. One item you will not see under the hood of any RS crossover is a diesel engine.
      "If I have to put money down for an investment which has to make a return worldwide, then diesel will never be the priority,” said Winkelmann.
      Source: Car and Driver

      View full article
    • By William Maley
      The only Audi crossover that has the vaunted RS badge is the Q3, but that is going changing in the near future.
      Speaking with Car and Driver, Audi Sport boss Stephan Winkelmann said there would be more RS-badged crossovers in the near future.
      “We don’t have a big lineup. The right cars means having them in segments that are growing, and also segments that are equally distributed in the regions of the world. Therefore a CUV shift is due; we are working on it, and you will see it coming.”
      Sources have previously said that the Q7 and upcoming Q8 will get the RS treatment. There is also the possibility of an RS Q5. One item you will not see under the hood of any RS crossover is a diesel engine.
      "If I have to put money down for an investment which has to make a return worldwide, then diesel will never be the priority,” said Winkelmann.
      Source: Car and Driver
    • By William Maley
      Last week, we reported on comments made by Volkswagen NA CEO Hinrich Woebcken on wanting to expand the number of crossovers in their lineup. It seems there is another crossover possible destined for the U.S.
      According to a source, Volkswagen is planning to launch the T-Roc compact crossover for the U.S. beginning in 2019. First shown as a concept back at the 2014 Geneva Motor Show, the production model will launch this summer in Europe. The decision was made by Volkswagen once dealers in the U.S. gave a firm commitment to the company they would be able to sell enough T-Rocs to make a profit. It also appears this decision was made only last week judging from a comment made by VW brand chief Herbert Diess.
      "It was only yesterday that we decided on an additional SUV for 2019," Diess told reporters when asked about product strategy for the U.S.
      There are still a number of items up in the air, however. For one, Volkswagen needs to decide where it will build the T-Roc. It could import the model from Volkswagen's Portugal plant, build it in Puebla, Mexico, or have it in the same assembly plant as the Atlas in Chattanooga, TN.
      Source: Automotive News (Subscription Required)
      Pic Credit: Newspress

      View full article
  • Recent Status Updates

  • Who's Online (See full list)