General Motors forecasts Cadillac sales in China will increase by at least 40 percent this year, as the carmaker accelerates local production in the world’s largest car market.
In the first six months of the year, Cadillac sales in China rose 71.7 percent, more than double the 32 percent growth rate of China’s premium vehicle market. GM China vice president John Stadwick forecast full-year sales of 70,000 vehicles.
“If you want to be a global brand, you have to have presence in the largest market, so there’s complete focus from leadership to ensure that we do it and we do it right,” Stadwick, who’s in charge of vehicle sales, service and marketing, was quoted as saying by Reuters.
Since China looks set to overtake the United States as the world’s biggest market for premium cars, GM wants to accelerate growth by announcing a second Cadillac model next month that will be locally made, as well as a third one next year, Stadwick said. However, he didn’t mention which models Cadillac will build in China. Currently the only Cadillac model built in China is the XTS sedan.
“We believe in building where you sell…so going forward, you will see fewer and fewer Cadillacs imported and more and more built in China,” Stadwick said, adding that this strategy gives Cadillac an advantage over rivals such as Lexus who don’t build cars locally.
China’s luxury car market is dominated by German brands BMW, Audi and Mercedes-Benz, all of which are heavily made in China. GM is relying on Cadillac to triple its share of the country’s luxury car market to 10 percent.
By Dan Mihalascu
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