General Motors Company has high expectations for its Cadillac luxury division. During a recent presentation to investment bankers and analysts at the Deutsche Bank Automotive Conference, GM revealed that it expects a two-fold increase in sales volume and profits associated with its luxury Cadillac brand over the next four years.
Over the past three years, Cadillac has managed to increase its global sales volume by 35 percent. Though impressive, the results serve as a catalyst for even more impactful and significant growth.
General Motors estimates that global Cadillac sales volume will increase 100 percent by 2021. During the Deutsche Bank presentation, GM executive vice president and CFO Chuck Stevens stated the growth in Cadillac sales volume will take place in both North American and in China. The expansion will be driven by the upcoming Cadillac CT5 sedan, the recently-unveiled Cadillac XT4 crossover, and an all-new large three-row crossover that will likely be called Cadillac XT6.
Cadillac’s product offensive entails the launch of on new vehicle every six months through 2021. Once all is said and done, GM’s luxury brand will have introduced five vehicle lines. The push starts with the 2019 Cadillac XT, which will launch in the fall of 2018 in the United States and at the end of August in China. It will serve as the first step in the product push. It is expected to be followed by the 2020 Cadillac CT5 sedan that will replace the ATS and CTS lines.
Furthermore, Stevens stated that GM expects the two-fold increase in Cadillac sales volume to deliver a 100 percent increase in Cadillac profit by 2021.
We should note that General Motors has not provided actual dollar figures associated with Cadillac’s current or forecasted earnings, but the firm has previously announced plans to break out the automaker’s fiscal performance in the future.