The luxury brand of General Motors – Cadillac, expects 2020 to be the third consecutive year of record sale for its cars globally.
This year the company expects to achieve double-digit sales growth in China despite the economic slowdown the market and slowing sales in the country, primarily in the mass-market, said Cadillac President Steve Carlisle.
“We’re still entering new segments in China and we’re still building out a distribution network, so there’s a lot of reasons to believe that we’ll improve volume and share in China this year,” Carlisle said in a television interview. “It will be double-digit growth again in China.”
The growth of Cadillac’s global sales was 8.8 per cent globally in 2019 at about 390,000 vehicles compared to 2018. That was driven by a 10.9 per cent growth for the brand in China. In its home market of the United States however the brand grew by only 1 per cent in the same period to report sale of more than 156,000 Cadillac cars.
In 2017, China became the largest market for the Cadillac overtaking the US which was two years prior to what the company had been expecting.
The company pointed out that the recently introduced CT4 and CT5 sedans will be the driver for propelling the sale of Cadillac cars next year to record highs for the third consecutive year. Additionally, its lineup of newer or redesigned crossovers and as a forthcoming redesign to its flagship Escalade will also be the reasons to boost sale in 2020, the company said.
According to the company, the production of the Cadillac CT6 will come to an end at GM’s Detroit-Hamtramck Assembly factory in Michigan at the end of the month which will mean that no new cars of the model will be available for sale in the US. The end of production for the CT6 as well as the Chevrolet Volt and Chevrolet Impala – slated to stop from February 2020, were undertaken as a cost cutting and restructuring strategy for the North American manufacturing operations of GM.
At the start of the year, Carlisle was hopeful that the production of the CT6 would not be stopped. He however said that the company was not able to put to work any of the potential alternative production plans. He declined to comment on specifics.
Carlisle drew attention to the fact that those vehicles that could be used to fill that large sedan void of CT6 would be an all-electric model instead of one that will have an internal combustion engine.
“We’re headed into this intensive electrification cycle,” he said.
Cadillac expects that most of its cars, if not all, will be all electric versions by 2030, Carlisle said last month. The current models of internal combustion engines would be phased out based on market demand by the brand, he said.
The preview of a crossover that is anticipated to be the first all-electric vehicle of GM – a part of the next-generation all-electric vehicle architecture of the company, was made in January.
“We’re going to enter that decade as an internal combustion engine brand. That’s where we are. We’ve never been better positioned as an internal combustion brand,” he said during a media event in Detroit. “It’s a decade we’re also going to exit as a battery-electric brand. There’s a lot that’s going to be going on for Cadillac in the ’20s.”
(Adapted from CNBC.com)