GM wants to concentrate on luxury sales in China with its Cadillac brand

Article by Christian Andrei, on December 22, 2011

Amid the rising wealth in China, General Motors Co. aims to focus on luxury sales in the next three to five years as the demand for premium vehicles is expected to go up. Kevin Wale, GM’s China president, will execute an expansion plan for its Cadillac lineup to attempt to entice BMW and Audi consumers to buy a GM vehicle.

Wale said that GM, the largest overseas automaker in China, seeks to raise production capacity in the country by up to 40% within the next two years.

In a Bloomberg Television interview, Wale said that the growth of luxury-car sales will be faster than the overall passenger-car market partly due to more Chinese people become wealthier.

The No. 1 brand in China when it comes to sales is Audi. Second place goes to BMW while Mercedes-Benz ranks third. Research firm LMC Automotive said that in the first 11 months of the year in China, Cadillac had a 51% increase in sales to 23,106 vehicles.

But it remains to be far behind the leaders. GM is working to raise sales of its premium cars in order to meet the demand from a growing group of successful entrepreneurs in China. LMC Automotive added that China may surpass Germany as the world's second-largest market for luxury vehicles in 2011, coming after the U.S. at No. 1.

Wale said that the overall auto sales in the market in China could increase by 7% to 10% in 2012. On the other hand, the demand for trucks and mini-commercial vehicles will recover from a likely drop this year to increase by 5% in 2012.

2013 Cadillac XTS comes into focus

Cadillac unveiled the newest addition to its luxury sedan lineup: the 2013 XTS. U.S. and Canadian luxury car markets can expect the XTS to arrive in the spring of 2012, where the car will present itself as Cadillac’s most technologically advanced production vehicle ever.

Larger than Cadillac’s CTS, the XTS features more space, and a more elegant and dramatic presence. Apart from these, the XTS also boasts new and cutting-edge methods that will suit a new generation of customers. Moreover, the new luxury car will also be marking the debut of CUE, which is a comprehensive in-vehicle experience. CUE combines intuitive design and auto industry-first commands and controls for media control and information.

Other than CUE’s interface and connectivity, the XTS also utilizes many other advanced technologies. In fact, the XTS will be the first and only luxury sedan that will be using Magnetic Ride Control, which is the fastest-reacting suspension in the world. Also available are advanced technologies that you can use to enhance vision and promote safety.

Positioned right above the Cadillac CTS series in the company’s revamped lineup, XTS boasts a 3.6L direct-injection engine as well as an advanced all-wheel drive system. This marks the delivery of a more efficient performance by spacious luxury sedans.

According to Don Butler, Cadillac Marketing Vice President, the XTS is representative of a new formula for luxury that is brought about by advanced technology. He says that the XTS highlights the evolution of Cadillac’s Art & Science philosophy, wherein it strives to combine together the best technical ideas and the company’s continued refinement of its design.

Topics: gm, china, cadillac

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