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Cadillac still planning for big things in China

Despite some hiccups, China remains the auto industry's great hope for new vehicle sales, with significant sales gains and a huge upside. Nowhere is that hope more fervent than at General Motors, which offers eight different marques in the Asian nation. China has been GM's single biggest market the last three years running, and is unlikely to give up that title anytime soon. Yet its premiere brand, Cadillac, has remained essentially stagnant, selling just 30,000 units in China last year. That's in a segment where sales of luxury vehicles has outpaced that of the larger Chinese market. So what gives?
According to Cadillac officials Autoblog spoke with in China this week at the Shanghai Motor Show, it's been a problem of product - they haven't had the right ones. Displacement taxation issues, import tariffs and currency fluctuations have all conspired to make the brand's products less appealing than they might otherwise have been. But GM is stepping on the gas with Cadillac, and executives are eyeballing 100,000 sales by 2016 - more than triple the Wreath and Crest's current volume. And the expectations for the brand only get more ambitious from there - they're shooting for 10 percent of the luxury market by 2020. Bob Socia, President of GM China, promises that there will be a new Caddy launched in the market each year from now through 2016 and most will be built in China. Characterizing the company's efforts to revive the brand's fortunes as a "relaunch" of sorts, Cadillac also figures to gain dealers as GM expands its sales outlet footprint westward.
New products like a made-in-China XTS sedan (with a market-specific 2.0-liter four-cylinder to avoid heavy displacement taxes) will help, and Socia hinted that the ATS sport sedan could be next in line for in-country production. The SRX crossover - currently the brand's best-selling model in China - will also likely get a long look for future local production when the next-generation model is introduced. In the meantime, Cadillac unveiled the Escalade ESV Hybrid (shown above) as its latest model addition to capitalize on the market's white-hot luxury SUV segment.

Recharge Wrap-up: BMW to test autonomous cars, Korea bans sales of BMW, Nissan, Porsche models

BMW will test autonomous cars on public roads by the second half of 2017. The German automaker, with partners Mobileye and Intel, will operate a fleet of 40 self-driving vehicles using a "scalable architecture" that will be made available to other automakers. The partners plan to offer products ranging from key components to "a complete end-to-end solution" for autonomous driving. Since parting ways with Tesla, Mobileye also recently announced it would provide its technology to Lucid Motors. For BMW, it all leads up to its fully autonomous iNext model slated for introduction in 2021. See the video above, and read more in the press release from Intel. South Korea has banned the sale of certain models from BMW, Nissan, and Porsche over emissions cheating. Following an investigation, regulators determined emissions testing documents to be falsified. The country's Ministry of Environment has fined the three automakers a total of $5.9 million, and revoked the certification of 4,523 vehicles across banned 10 models. Six of the models were still on sale, while the other four have been discontinued. Read more from Automotive News Europe. China's prices for the Cadillac CT6 Plug-in are significantly higher than those announced for the US. The plug-in hybrid version of the luxury sedan recently went on sale with the two variants priced at RMB 558,800 and RMB 658,800. At the time of this writing, that's $80,420 and $94,812. Cadillac announced it would bring the CT6 Plug-In Í– which is built in China – to the US in the spring of 2017, starting at $76,090 before federal and local tax incentives. Hybrid Cars points out that China's own generous incentives could help to make it more competitive. The offering of a charger with free installation as well as an eight-year warranty on the electric powertrain should help, too. Read more at Hybrid Cars. A Connecticut court has ruled in favor of Tesla's gallery showroom in Greenwich. Last May, the Connecticut Automotive Retailers Association brought the suit to block the showroom on Greenwich Avenue, which has now been dismissed by the Connecticut Superior Court. Tesla cannot offer test drives, sell cars, or operate a Supercharger at the location, but it can sell other branded items and educate the public about its vehicles. It's possible that the issue of Tesla's direct sales model could come up again this year in Connecticut state legislature. Read more at Teslarati .

Is Lincoln MKC cutting into Cadillac SRX sales?

The two big American luxury brands of Cadillac and Lincoln are on surprisingly similar paths at the moment with both divisions hoping to redefine themselves and grow popularity. They're still early in the process with no clear winner yet, but things might actually be looking up for Lincoln's latest model, according to a monthly sales analysis from The Motley Fool. It seems, at least early on, that the new MKC crossover might be taking a bite out of the Cadillac SRX's growth.
The MKC launched just a few months ago and has been getting a big marketing push from a series of oft-mocked ads starring the smooth-talking Matthew McConaughey. The luxury CUV has been the popular, new kid on the block with growing sales since its introduction. While smaller than the SRX, the Lincoln starts at a lower price and offers better fuel economy.
Through June, the SRX performed well with sales up over 20 percent on average through June, according to The Motley Fool. However, July and August saw things plummet with year-over-year drops of 7 percent and 37 percent, respectively. It still far outsold the MKC in terms of actual units in a given month, but the Caddy's continued growth has appeared to stagnate.