Cadillac Targeting 4th Place in Global Luxury Sales in 10 Years

When you are in a market where you want to be a leader but you are in 5th place, your goals might sound modest. GM has recently made the internal decision on how they plan to climb back up the sales chart and step one is to knock off current #4 Lexus. Last year, Cadillac sold 199000 units world-wide, including 152k in the US. By comparison, 4th place Lexus sold 410k cars in the same period. Part of the plan to make it to #4 is to offer products that appeal in markets where Cadillac has the opportunity to gain buyers without having to steal them away from the competition. Expect to see a push in China where the market is still forming vs. trying to displace the likes of BMW, Mercedes, and Audi in the European market. This push will see Cadillac evaluating where the sales really are in the luxury market and putting products into those spaces. ATS will be key to this strategy, but a smaller than SRX crossover might also make sense if this body-style takes off in the coming years. Source: Bloomberg