Sedran: Cadillac’s Relevance In Europe Important For Success In U.S., China2
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.
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First many have to get this into perspective. GM is not going to out sell Benz and BMW in Europe. It is not going to happen As the home team has an advantage and always will.
But that is not to say GM can grow their share of the market in Europe and have a decent slice to where they will be relevant and profitable. That is all Benz and BMW do here. With the new cars and a Diesel they for once will offer a car that Europe wants do this is do able.
China GM just needs to continue to grow all segments not just Cadillac but also Buick and Chevy.
China is such a large market that if a company does not do well there it could make them collapse in time. This is why the land rush is on to China and the MFG are putting up with the Chinese Government BS.
I said this the other day, a respected Cadillac in Europe will help everywhere else including here in Canada. I think it is a tough sell at this moment to get your average luxury buyer into a Cadillac.
To me one of the attractive things in having an ATS is its different from all my neighbours cars. Can’t really stand out in Toronto in the 3 series or C-Series. And then what’s the point if you look like you’re just part of the herd and spending big money to be there?
A car selling reasonably well but that has serious respect from the europeans would be a real boost to the brands lustre back here. People watch top gear etc. and listen.
Having said that, Gms got it’s work to do in Canada as sales are falling.