Cadillac China Sales Increase 37 Percent In Q2 2019

Comments

1. 

   Mainstream brands have decreased sales but luxury brands see increase in sales. Hmm.. I wonder who is winning the trade war.
   Reply
2. 

   Thank God Cadillac has the China Market. Might be a dead Brand otherwise.
   GM needs better Product for this once Famed Brand. Not being competitive with the leverage GM has is unacceptable.
   Reply
   1. 

      Totally agree.

      Cadillac was once the pinnacle of desire and a showcase of opulence here in it’s home country. Their heyday has long vanished, being replaced by “spiced” up Chevys. FWD and weak 4 pots, do not make for a true Cadillac.

      And, yes, GM has the ability to look to the past and replicate the passion that was once put into the Cadillac brand.

      Now, the Chinese are happy to live their Cadillac fantasies. While that is good for them and for sales, if GM truly brought their concepts to life and quit cost-cutting their luxury brand, they could indeed become the “STANDARD OF THE WORLD” once more. But?????
      Reply
   2. 

      Despite healthy sales volumes, China accounts for little actual profits compared to the US. The profit margin on a Cadillac sale in China is about 40 percent of what a Cadillac sale earns in the US. Add to that that there are no Escalade sales in China, and China becomes even less important.

      Now, is China important to creating more sales volume for Cadillac? Absolutely. But its impact is often significantly overstated… as is the case in the comments here.
      Reply
      1. 

         So Alex, this is always your answer when its overstated here.

         And so when Cadillac cancels, lets say like the XTS, or have said the CT6, and the profit margin, you say is 60% of what it is in China.

         So do they sell 60% more , lets say, the XTs or the CT6 in China ?

         I know I an being facetious here, and GM doesn’t sell the XTS there, but isn’t that always what you say ?

         GM cancels vehicles the less profitable vehicles in the US and not enough volume vehicles in the US, yet in China, you say they make 40% of the profit per vehicle, so do they sell 60% more in volume then?

         Why aren’t they canceling them over there ?

         It wouldn’t have anything to do with the intertwined parts network GM has tied to china and that is how GM makes the 60% more profit here in the US ?

         So when you always say what you say about the China VS the US profit, I would like you to add a profit % on the china profit made on a US vehicle sale.

         You see if you take, lets say, 15 to 20 % of the US profit ( through China parts and “stuff” ) and add it to the 40% profit of the China vs US, what is the real profit for GM doing business in China ?

         In my case, that’s the profit I am talking. The profit GM makes doing business in China !!

         And without China, would GM be in a world of hurt ?

         And again, if this is not true, why is GM staying in China at 40% of the profit it makes in the US ?

         Any way, the general public I’m sure will never know, yet you seem to know the facts here !!

         Care to share some ?
         Reply
      2. 

         Alex,
         The profits might not be more in China but the point you are missing is that the numbers in sales is there in China. Profits are less percentage wise but sales are more so that makes up for it.
         How many more Programs would GM cancel for Cadillac without the sales in China?
         How much more subpar Luxury interior parts would be used in Cadillac interiors? How much more lackluster would Power-trains be?
         GM desperetly needs China. Desperately.
         Also, I would love to know the Profit margin in the USA vs. China if the Escalade was taken out of the equation. Would be interesting to know actually.
         Reply
3. 

   People in China do not see the stigma of owning a Cadillac that people in America and Europe feel because of cars like the Cimarron; although the Chinese might have thought of it as being innovative given that they embraced the Buick Verano.
   Reply
4. 

   Cadillac margins in China aren’t nearly what they are in the US (as Alex informed me). Still, not bad news.
   Reply
5. 

   And lets talk about that China stigma of owning a Cadillac over there.

   How is GM taking care of the CUE delamination over there ? Does anyone have any details ? Or is Cadillac a new enough brand over there that the Chinese people haven’t been screwed by GM enough yet on ” known faulty ” parts ?

   Or by the Chinese government owning 40% of GM or Cadillac China, is GM simply told by the Chinese government what to do as it pertains to the value to the Chinese people ?

   I heard somewhere that in China, GM provides connection for the vehicles, like where in the US the Customer has to buy it. Things like that.

   You know, its like Alex says, if GM only makes X profit in China and the China government makes X profit per GM vehicle in China, its more like a partnership in China.

   This is what is the funniest to me. The Chinese people want Cadillac because they are behind the curve of what is popular in the world. The Chinese people want a Cadillac because of what it used to mean to own one in the US. So now that in the US owning a Cadillac is a joke, will it take two to five years for the Chinese people to relies the US upper class thinks Cadillac is a joke. Then will Cadillac be a joke over there ? Or is it that the Chinese people simply don’t care that a Cadillac is just a better looking GM badged vehicle, like the US does ?

   O well my opinion.
   Reply