The Cadillac brand holds weight around the world, with a variety of different models sold in more than 30 international markets. However, Caddy’s three biggest markets are Canada, the U.S., and China, with the Chinese market now topping the list in terms of sales volume. In fact, Cadillac sold significantly more units in China than it did in the U.S. last year, reaffirming just how much the brand has taken off in the largest auto market in the world.
The numbers tell the story. Last year, Cadillac sold 194,100 units in China, topping the 134,703 units sold in the U.S. by a massive 59,397 units, or 44 percent. But that pales in comparison to the 2021 calendar year, during which Cadillac sold 231,800 units in China compared to the 118,032 units sold in the U.S. during the same timeframe, a spread of 113,768 units, or about 96 percent.
Indeed, looking back at the numbers, we find a distinct rise in Cadillac’s sales success in China as compared to the U.S., with 2020 marking a 78-percent higher total sales volume, 2019 marking a 37-percent higher total sales volume, and 2018 marking a 33-percent higher total sales volume.
| Calendar Year | USA | China | China +/- Units | China +/- % |
|---|---|---|---|---|
| 2022 | 134,703 | 194,100 | 59,397 | 44% |
| 2021 | 118,032 | 231,800 | 113,768 | 96% |
| 2020 | 129,495 | 230,527 | 101,032 | 78% |
| 2019 | 156,246 | 213,717 | 57,471 | 37% |
| 2018 | 154,702 | 205,605 | 50,903 | 33% |
This sales volume difference can be traced back to the turn of the decade, around 2010, at which time China was a relatively tiny market for Cadillac. However, that all changed when GM opted to begin building Cadillacs locally in China, thus circumventing steep import tariffs and propelling Chinese sales numbers to all-new heights.
It’s certainly impressive to see just how well Cadillac has taken off in the Chinese market. That said, even though we don’t have profitability figures in hand, it’s safe to assume that the brand is considerably less profitable in China than it is in the U.S.
The big factor here is that Cadillac doesn’t offer the iconic Cadillac Escalade luxury SUV in China. The Escalade is undoubtedly Cadillac’s biggest profit driver here in the U.S., and its absence in China hurts overall profitability by a signifiant margin.
That said, it’s possible that may change in the future thanks to the automaker’s recently established premium vehicle import business. As GM Authority covered previously, GM is now preparing to bring in new high-end models to cater to wealthier buyers willing to fork over a premium, with highlight models including the C8 Corvette Stingray, the GMC Hummer EV, and yes, the Cadillac Escalade as well. To note, the Cadillac Escalade is exclusively built at the GM Arlington plant in Texas.
Naturally, we’ll certainly keep an eye on this and relay any updates, so stay tuned. In the meantime, remember to subscribe to GM Authority for more Cadillac news, more GM business news, and around-the-clock GM news coverage.
Comments
One of the factors since 2019 for NA is the availability of product. In NA GM full size pickup and SUVs are the production priority, such vehicles are not available in China. GM has diverted chips to the BOF vehicle structures which has affected availability of Cadillac product in other than the Escalade in NA. Cannot find any Cadillacs available for most of the year in this market . GM could likely sell far more than the Chinese numbers in the US if retailers had product to sell.
Another problem is that GM doesn’t promote Cadillac, in the US. What little advertising there is, is just BAD. When you see a TV spot its dull and boring. In contrast, ads for Mercedes, BMW, Audi and even Lexus are interesting and exciting…they show $100,000 cars spinning and sliding and doing all sorts of stuff that no one in his or her right mind would consider doing with an expensive luxury car, but guess which cars are selling ????? Being a retired Advertising Executive, I can assure you that GOOD Advertising works !!!! The German competitors prove it everyday.
GM’s approach to advertising has been a problem for decades. They produce some highly competitive vehicles yet continue to focus their advertising on surface-level, visceral emotion with their ads while neglecting deeper, intellectual responses to performance, function and driving engagement.
Frank Ricciardi: I agree with you about the lack of advertising and what they do have is meh in most cases. However, I just can’t agree with the ridiculous adverts done by MB, BMW, Acura and even Lexus where they are showing the cars revving out and sliding, spinning, etc. If Cadillac mirrored that type of adverts it would be just one more lame way that Cadillac would be chasing the wrong brands.
I’ve said it before and will go to my grave saying this. Cadillac isn’t selling that well because they are going after buyers that will “almost” never consider a Cadillac. They absolutely must get better at advertising and do more of it. But Cadillac won’t begin to sell very well in the US until they take back their heritage and allow Cadillac to be just that: A Cadillac! Not a BMW or MB, but a true Cadillac.
Proof is right in front of us. Just look at the Escalade. It’s big, brash, flashy, BOF, and just plain more old school.
No surprise at all. No advertising no sales.
Cadillac does not sell that big floaty sedan in the US and has lost a lot of their customer base.
Cadillac needs to sell the CT6 in the US again. It is not a “big floaty sedan” at all. I can throw either one of my CT6’s into Sport mode and it handles just like my Corvette. Mountain roads were a blast in them. Touring mode is comfortable, but you still have a road feel. Snow mode allowed me to plow paths that the 4-wheel drive pickups followed. Yes, my CT6’s are AWD, all wheel steer and have Super Cruise.
The trouble is GM and Cadillac have given up on marketing in the US and they think that everyone is going to flock to an Escalade or one of the CUV’s that they have. The CT4 and CT5 are jokes when it comes to a TRUE luxury sedan, being anemic, unless you get the V-series, they have no room for 4 average sized adults, and they are way over-priced.
We still have a “big floaty sedan” in our 2002 Cadillac DHS with just over 100K miles on it. Still floats down the road like the land yacht that it is, but my wife won’t let me get rid of it.
So, why you want to get rid of the DHS that is 20 plus years old now? If the car is reliable and continue to run, that is a blessing.
The DHS is a great car and really the only maintenance has been tires and oil changes at very regular intervals. When it goes into the dealership, they are amazed at how good it looks inside and out. Not clearcoat peeling, rust, dents/dings and even the chrome rims are pristine. It sat outside on the drive beside all the other cars we have had, since the Vette is occupying the garage. We are in a snow belt and the DHS only came in for a wash and detail.
I ceramic coated it 2 years ago after doing a paint correction and it shines even more. We really don’t need 4 cars, but we just rotate driving them now since we are both retired.
You lost all credibility when you said “handles just like my Corvette” in sport mode. A 4500lb vehicle does not handle anywhere close to that. It may handle well for large sedan, but not a sports care weight 1k lbs less and designed to handle first thing.
I am not even going to get into the snow mode and 4wd pickups comments, they could plow a path you wouldn’t even be able to back out of…
I drove Tail of the Dragon in both, and they are not equal, but the handling is there on the Cadillacs. They have the magnetic ride and that makes a huge difference. yes, the Vette is 1K lighter but the Caddys are still nibble for being a big luxury sedan.
I drove 2 lane roads for several years, 60 miles one way to get to the hospital for work. Many times I had the 4×4’s following my path. I backed out of a drift that was covering the back end one night leaving the hospital. It took a couple of bumps on the drift, but I got out and drove home.
Does GM actually make much money on cars sold in China, since it’s a partnership, or does it mostly improve their engineering/design/parts economies of scale?
In the previous century, I did not fit well in Japanese cars–the head restraints always hit me in the base of the neck. I’d rather “American” cars be designed for the American market, as the trucks are. And not for the car mags, either, which has helped turn them into cramped penalty boxes.
I heard that profits are split with the Chinese government due to small margins compared to the US sales.
35% of GM profits were “given” to the US government until a few years ago.
Can you source a site that backs up your claim?
The US tax code. Trump signed the bill that lowered the corporate rate from 35% to 25%. Of course, for decades, Congress has sold a zillion ways to reduce taxable income, so total taxes paid were less than 35% of profits, but that was the marginal rate. I was exaggerating for comparison with the China situation. There’s also the issue of bringing overseas profits home to pay dividends in the US.
of course they did, Anybody try to buy a Escalade last year? Or for that matter anything else? Car Lots were empty.. As far as US customers not wanting them, that’s a joke. They just couldn’t get them, they are great cars. my 21 Onyx addition is Amazing.
(“in the largest auto market in the world”) They should be selling more.. I’m guessing all the other automakers are experiencing the same trend. The only difference is GM is catering to the Chinese over the US market. Ex. XT5 next year & CT6 China only. IMO.
Cadillac’s biggest issue is the fact that their products are just like everything else on the road, just fancier.
When I was a kid, Cadillac was unlike any vehicle on the road. They were larger, more luxurious, technologically more advanced, superbly styled and a status symbol.
Sure their vehicles are nice, but so is everything else on the road. They need vehicles that take your breath away; large, flashy and powerful; and not electric either.
You just described the number 1 selling Cadillac model, the Escalade.
There is a major difference from when you were a kid to now… it’s a globalized world. The “large and powerful” Escalade can only be sold in the US, Canada and maybe 100 in Australia.
I agree, caddy has never been , “a wannabe dream” had so called sport-luxury image. its German’s gimmick! And as you said that buyer profile never include cadillac in their consideration. Even though Caddy is better faster and cheaper than Euro completion. If that were the case CT4 & CT5 BW should have outsold the german by tenfold.
Just accept the fact; the majority of people see cars as fashion products. They don’t base their buying decision on usefulness or technical specs nor do an objective comparison. They just buy the most fashionable brands. It bugs me how GM marketing can’t see this and again & again continue to desperately trying to under cut completion pricing they think thus they can lure the buyers of that brands. Wrong! It’s not about pricing in luxury segment, has never been. It’s all about the image you sell.
Once again as you said caddy is running in wrong lane while its well established image is comfortable cruising in posh cabin, statue symbol of accomplished people, yet instead they’re trying to sell to hipsters and whipsters of the world.
I think Celestiq is a right move to accord Caddy’s position with its image. Caddy should be more expensive exclusive brand that going after Bentleys and Rolls-Royces that is where you make heavy duty truck tones of money with big margins. So plan is very simple just make ultra luxurious much more expensive vehicles, you don’t even need marketing, products will sell themselves thru the hype.
You last paragraph I agree completely but you seem to be missing a point that the reason why Cadillac is far behind the competition is because they don’t have various body styles of the ATS, CT4/5 and CT6 back then. Also, they never had a true premium flagship above the CT6.
I also disagree about Cadillac being a more performance luxury brand being held back because the second generation CTS sold decently and had different body styles for that generation cycle only from ’08-’13.
I think you mean “competition” when you write “completion”, am I right, Vince?
I HAVE DRIVEN CADILLACS SINCE 1954 AND I AM VERY DISAPPOINTED WITH WHAT IS NOW OFFERED. LUXURY HAS ALWAYS BEEN THE LONGEST, LOWEST AND WIDEST WITH THE BEST 0 TO 60 AND THE MOST EXCLUSIVE ACCESSORIES. THEY NEVER BUILT THE CT8 AND THEY SHOULD HAVE BUILT THE NEW XLR AND LATER RELEASED THE CORVETTE.
THE NEW CELESTIG IS A OVER PRICED JOKE. IT IS NOTHING BUT A SUV WITH A TRUNK AND IT IS BEING RELEASED TOO LATE. THAT ENGINEERING AND NEW ACCESSORIES SHOULD HAVE GONE TO A CT8 SEDAN.
Cadillac lost their image and has yet to gain it back.
Their damaged image has lasted several generations. It also has not helped that they have changed directions how many times.
Just when thing look like they are turning they bring in a new leader and plan.
No advertising, marketing and or vehicle can thrive with so many changes.
If you build a car right and you build on it with each vehicle you can reclaim an image.
A good vehicle will sell advertising or not. Tesla sells tons of hard to sell EV cars with no real marketing.
Today the web is where most vehicles are finding image and recognition.
TV ads are limiting and magazines are dead.
Cadillac is an aspirational brand in China. Here only the Escalade is sought after. Cadillac has for several years now aimed their vehicles at the Chinese market and the design,scope and packaging is reflective. Again only the Escalade is for “here”. In reality, many dealers here would close up without the Escalade.
With the help of the Escalade, Vs and LYRIQ, the image is slowly changing. The XT models and a lack of a true volume flagship sedan are holding Cadillac back IMO.
Celestiq is coming!
Any brand would sell more in China than on their home turf, except the Stellantis brands… China is still the most populous country on this planet (to be bypassed by India shortly).
But the Cadillac sales numbers do not correspond to the actual relation of population numbers of both countries, 1400 thousand in China to 340 thousand in USA, which corresponds to 4:1, approximately.