General Motors Co. is expecting Cadillac to post a 40-percent surge in sales in China for 2014 to around 70,000 vehicles. Cadillac has so far sold 45,600 units, according to GM’s China President Matt Tsien. Selling 70,000 vehicles in China this year would place Cadillac on track to achieving its target of delivering 100,000 units in 2015, after selling 50,005 vehicles last year.
Cadillac’s sales target in China comes as General Motors disclosed plans to make the brand a separate New York-based unit. The unit would be headed Johan de Nysschen, currently the brand’s president. Tsien remarked that they are very optimistic about the luxury market in China, which they expect to become the largest in the world by 2016.
He remarked that with de Nysschen at Cadillac’s helm, the brand has somebody who understands luxury and what is needed in China for it to be successful. GM is also focusing on luxury cars as it tries to reclaim its throne as the best-selling foreign carmaker in China – which it lost to Volkswagen in 2013. GM expects one of every 10 vehicles delivered in the country to be luxury units by 2020.
As part of its goal of dethroning VW, GM is planning to invest $12 billion through 2017 to hike capacity and expand its product line in China from around 40 models currently to 60 by 2018.
According to Tsien, GM is planning to introduce a redesigned Chevrolet Sail, a small sedan, and a nine-seat Wuling vehicle in China and is expecting the auto industry to grow between 8 and 10 percent this year. He quipped that GM would outpace the industry and gain market share in China.