AUTO ADVISOR GROUP
BRUCE HUBBARD
Cadillac
announced at this week’s Beijing
Auto Show that it will build the all-new XTS luxury sedan in
China in conjunction with joint venture partner Shanghai General Motors (SGM).
The production expansion for the Chinese market is a major landmark in the
brand’s global growth.
The
new 2013
Cadillac XTS launches in North America later this spring with production
beginning in the coming weeks at the Oshawa, Ontario Assembly Plant. XTS
production will begin in China this fall. The XTS is a new approach to the
luxury sedan, blending traditional Cadillac spaciousness with advanced
technologies, some of which are industry and segment firsts.
“China
is the second-largest market for Cadillac, and of course is one of the largest
and strongest markets in the world for luxury cars, so it is a core part of our
vision as a brand,” said Don Butler, Cadillac vice president of
marketing. “It is projected that by the end of the decade half of all
luxury purchases in the world – all categories, not just cars – will occur in
China.”
Cadillac’s
expansion in China in 2012 is the result of impressive growth for the brand.
Since its small-scale debut in China in 2005, Cadillac has steadily earned a
solid position. Cadillac sold a record 30,000 vehicles in China in 2011,
compared with 17,000 in 2010.
XTS
is not the first Cadillac assembled in China. That distinction belongs to the
SLS Executive Sedan, an extended-length luxury car exclusive to China that
began production in 2006. However, the expansion of XTS production to China
marks the biggest step in Cadillac’s growth in the world’s largest automotive
market.
All
of the brand’s core product lines are sold in China, with the CTS
Sedan and Coupe, SRX
crossover and Escalade
imported from North America. The SRX is Cadillac’s top seller in China.
In March Cadillac sales set a monthly record of 2,745, an increase of
35.2% over the same period in 2011.
The
average age of a Cadillac buyer in China is 35, signifying the explosive growth
of the luxury marketplace and consumer perceptions of Cadillac.
“We’re
very encouraged by the positive response Chinese luxury consumers have to
Cadillac,” said Butler. “Qualities like innovation and entrepreneurship are
admired by many luxury consumers in China, which aligns well with Cadillac. The
American spirit of Cadillac creates a distinct and compelling position in the
luxury marketplace.”
Cadillac’s
dealer network has grown to 68 locations with projected growth to 120 dealers
by the end of 2012. “Our dealers in China are experiencing strong growth, with
some of them quickly becoming among the largest and best we have in the world,”
said Butler.
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