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