With sales up roughly 22 percent in the United States in 2013 thanks to the launch of all-new vehicles such as the ATS, CTS, and XTS, it’s undeniable that Cadillac is hotter than hot cakes in its home market. In fact, those results earned Caddy the title of the fastest-growing premium brand in the country. But the
Wreath and Crest isn’t faring so well in Europe, selling 430 cars in the region in all of last year, down significantly from the 3,000 sales seen in 2007. Luckily, The General is placing renewed focus on its only truly global luxury marque.
Interestingly, Cadillac’s success in Europe has an influence on its success in other markets, including the U.S. and China.
“Making the brand more relevant in Europe also is important for it to succeed in the U.S. and China,” said Thomas Sedran, Managing Director of Cadillac and Chevrolet Europe.
Cadillac sales in China rose 67 percent to roughly 50,000 cars in 2013, lending further optimism to the brand’s global potential. Much of Cadillac’s success in China can attributed to the new manufacturing facilities that build vehicles locally for the Chinese market, thereby avoiding the hefty tariffs penalizing imported vehicles that has historically priced most Cadillac offerings in the country out of reach of even the most affluent luxury car buyers. As more plants destined to produce Cadillacs come online in China, the brand should see an even further sales uptick in the country.
But a globally-holistic approach to growth, including reaching respectable sales results in Europe, sounds like a sound strategy to us. And with the right product (ATS, new CTS, LTS, and diesel engines that are pretty much a prerequisite for European success) available now or in the future, all that’s left to do is divide the territory, then conquer.