Business / Auto China

GM outlines ambitious plans to promote Cadillac brand in China

By Li Fangfang (China Daily) Updated: 2014-12-06 08:08

GM outlines ambitious plans to promote Cadillac brand in China

A model poses with a Cadillac XTS displayed at the Shanghai International Automobile Industry Exhibition in Shanghai, April 21, 2013. [Photo/Agencies]

General Motors Corp, the United States-based automobile giant, has charted ambitious plans for its luxury brand Cadillac in China, believing the premium segment will provide strong growth momentum in the longer term.

"Cadillac will introduce nine new models in China over the next five years, with more than 95 percent of its product lineup being localized by 2018," said Johan de Nysschen, who recently took over as executive vice-president of GM and president of the Cadillac division in July.

Daniel Ammann, president of GM, said that the global growth and elevation of Cadillac would be a strategic priority for the company.

"China represents a crucial opportunity given its very strong market and the positive momentum for Cadillac."

The US automaker plans to take Cadillac to the pinnacle of premium segment and make it a leading, iconic global brand. Nysschen said his team is focused on expanding and elevating the brand, growing Cadillac's presence in China and other global markets with a bold plan that includes numerous product additions through 2020.

Global demand for luxury vehicles is undergoing a major shift. Before 2020, China is expected to have surpassed the US and caught up with Europe as the world's largest luxury vehicle market.

German brands - Mercedes-Benz, BMW and Audi - still account for about 75 percent of the segment market share, followed by United Kingdom-based Jaguar Land Rover, Toyota Motor Corp's Lexus, and Volvo which was acquired by Zhejiang Geely Holding Group Co Ltd. Cadillac ranks sixth in terms of sales volume but had the highest year-on-year growth.

Rao Da, secretary-general of the China Passenger Car Association, said: "During the past three years, the luxury segment market share jumped from 6 percent of total market in 2010 to 10 percent now, greatly supported by the increasing locally produced models. With younger customers expected to provide the growth momentum, we will see an acceleration in premium vehicle localization in the coming years."

Cadillac has maintained its momentum in China, its second-largest market after the US. In the first 11 months, Cadillac sales in China surged 50.7 percent from the year-ago period to 64,359 units.

Nysschen said: "Cadillac is in a strong position to address the rapidly rising demand for luxury vehicles in China, a country in which we have a strong foundation given GM's long-standing strength here.

"By offering a broad lineup of products built in China for local consumers, we are intent on being at the forefront of the next stage of the luxury segment's development."

He said that Cadillac will be the first automaker to offer a built-in 4G LTE service in one of its products sold in China next year.

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