A total of 142 new Cadillacs found homes in South Korea in June 2018, a decrease of 30 percent compared to June 2017.
Individual model sales performance was as follows:
- Cadillac ATS sales decreased 53.57 percent to 13 units
- Cadillac CT6 sales decreased 44.26 percent to 34 units
- Cadillac CTS sales decreased 71.43 percent to 10 units
- Cadillac Escalade sales decreased 47.62 percent to 22 units
- Cadillac XT5 sales increased 70.27 percent to 63 units
- Cadillac does not market the XTS nor the Escalade ESV in South Korea
The decrease in June sales volume follows a 31 percent decrease in May, 29 percent increase in April, and a 3 percent decrease in March.
In the first six months of 2018, Cadillac South Korea sales increased 2.3 percent to 842 units.
Sales Results - June 2018 - South Korea - Cadillac
| MODEL | JUN 2018 / JUN 2017 | JUNE 2018 | JUNE 2017 | YTD 2018 / YTD 2017 | YTD 2018 | YTD 2017 |
|---|---|---|---|---|---|---|
| ATS | -53.57% | 13 | 28 | -51.16% | 63 | 129 |
| CT6 | -44.26% | 34 | 61 | +8.14% | 319 | 295 |
| CTS | -71.43% | 10 | 35 | -50.00% | 79 | 158 |
| ESCALADE | -47.62% | 22 | 42 | +82.54% | 115 | 63 |
| XT5 | +70.27% | 63 | 37 | +49.44% | 266 | 178 |
| CADILLAC TOTAL | -30.05% | 142 | 203 | +2.31% | 842 | 823 |
The GM Authority Take
We presume that the ongoing slide in Cadillac South Korea sales volume is a direct result of consumer uncertainty in the Cadillac brand and its parent company, General Motors, in the market, predominantly as a result of the restructuring efforts taken by the automaker in the first half of the year.
As part of its restructuring, GM Korea was able to reduce its existing debt by approximately $2.8 billion, while decreasing costs and available vehicle output by closing the GM Gunsan plant that builds Chevrolet vehicles both for the local Korean market as well as for export markets. Developments surrounding the restructuring were covered very closely by the Korean media, mostly portraying GM in a negative light. In fact, prior to the restructuring, rumors persisted for weeks that GM could withdraw from the Korean market if a resolution with the Korean labor union and the Korean Development Bank, among other items, was not reached.
As such, we believe that Korean media coverage of the reorganization, which mostly portrayed GM negatively and emphasized its imminent withdrawal from the market, which ultimately proved false, created a significant amount of uncertainty in GM and Cadillac in Korea, thereby continuing to negatively impact the luxury brand’s sales volume in the market. Whether or when GM and Cadillac will recover from the damage caused by the scenario is currently unclear.
About The Numbers
- All percent change figures compared to Cadillac South Korea June 2017 sales, except as noted
- Cadillac South Korea sales figures represent vehicle registrations rather than raw sales volume
Further Reading & Sales Reporting
- GM news
- June 2018 GM sales results
- GM Canada June 2018 sales results
- Chevrolet Canada June 2018 sales results
- Cadillac Canada June 2018 sales results
- Buick Canada June 2018 sales results
- GMC Canada June 2018 sales results
- GM Korea June 2018 sales results (coming soon)
- Chevrolet Korea June 2018 sales results
- Cadillac Korea June 2018 sales results
- GM China June 2018 sales results (not available because of this)
- U.S. GM June 2018 sales results (not available because of this)
- GM Canada June 2018 sales results
Comments
842 units Januar – June 2018 — that is just 3 less than Cadillac and Chevrolet combined in Germany in the same time.
Of those 845 all GM combined, 575 are Chevrolet Camaro and 102 Cadillac Escalade, together 677.
Source: KBA (Kraftfahrtbundesamt), monthly statistic of new registrations of passenger cars, by brand and model series, for June 2018 (Publication series FZ10)
This is a marketing opportunity for GM / Cadillac to “spin” the media on it’s head; a “We’re here to stay” type campaign or similar.
Will they do it? Probably not. Too busy lint-gazing or, maybe, the truth is just below the surface and the Barra-withdraw-to-America strategy is playing itself out. Albeit, one factory at a time.