General Motors is gearing up to grow its global luxury brand, Cadillac, in new markets around the world, including the United Arab Emirates, China, North America, and — in 2020 — Europe. The newest expansion target for Cadillac is in a second Asian country, as the luxury brand has revealed that its new long-term vision for competitiveness and growth involves South Korea. The announcement was made at the 2014 Busan International Motor Show last week.
Korea’s imported car market has seen rapid growth in recent years, and sales of luxury cars surpassed 150,000 vehicles last year. Cadillac is looking to get in on some of the action, and plans to grow the brand by adding to its product portfolio and strengthening its sales network.
GM Korea said it will add more than one new model to its product portfolio each year to keep up with “ever-changing trends in the imported car market.” It kicked off the first stage of this step last week when it showed off the all-new 2014 CTS sedan in Korea for the first time.
But we should note that Cadillac can introduce as many models in Korea as it wants, but its efforts may be wasted without the proper sales network to support sales. That’s exactly why it will strengthen its dealer network; it will start by upgrading and renovating the three showrooms in Seoul, Daejeon and Busan. Some stores in the dealer network will also be expanded to incorporate a Chevrolet showroom in areas where Chevy already operates.
With these tactics in place, Cadillac hopes to capture 10 percent of Korea’s imported luxury car market within the next 10 years. As such, it will have to knock around the current kings of the luxury car market in the region — BMW, Mercedes-Benz, and Audi.