General Motors may be the biggest foreign automaker operating in China, but the Detroit-based company still struggles when it comes to the luxury segment. However, GM says it is committed to meeting China’s luxury demands with its Cadillac brand over the next 3-5 years.
German luxury marques like BMW, Audi and Mercedes-Benz are the segment leaders in China, but GM is hopeful an increase in domestic production will give its Cadillac brand a healthy boost. Most Cadillac models sold in China are built outside of the country — resulting in expensive fees and taxes – but GM is planning to increase the brand’s domestic production by 40 percent over the next two years.
“Luxury-car sales will continue to grow faster than the overall passenger-car market, driven by increasing wealth,†Kevin Wale, GM’s China head, said. He added: The segment is “a key area of focus for us over the next three to five years.â€
GM’s China sales currently stand at 2.35 million vehicles, marking an increase of 8.2 percent over the same period a year earlier. GM is hopeful an expanding lineup will double its sales to 5 million by 2015.
References
1.’GM to Focus…’ view
