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Cadillac and Buick boost GM's return to growth in China

BEIJING — General Motors on Monday said continued market recovery from the COVID-19 crisis helped its China vehicle sales grow 12% on year in July-September, marking the Detroit automaker's first Chinese quarterly sales growth in two years. The second-biggest foreign automaker in China by units — after Germany's Volkswagen AG — said on Monday it had delivered 771,400 vehicles in China in the third quarter. That followed a 5% fall in the second quarter, when parts of China were still emerging from virus-busting lockdown measures. GM has a Shanghai-based joint venture with SAIC making Buick, Chevrolet and Cadillac vehicles. It has another venture, SGMW, with SAIC and Guangxi Automobile Group, producing no-frills minivans and which has started manufacturing higher-end cars. Sales rose 26% for cars under its mass-market Buick brand in the third quarter versus the same period a year earlier, while those of premium brand Cadillac jumped 28%, GM said in a statement. Sales of its mass-market Chevrolet marque fell 20%. Sales of no-frills brand Wuling grew 26%, whereas those of mass-market Baojun vehicles tumbled 19%. "GM's compact models returned to four-cylinder engines and that helped sales growth," said LMC Automotive senior analyst Alan Kang, referring to an attempt to market cleaner but noisier three-cylinder versions. "Cadillac also has a more complete lineup this year." China's biggest automakers' association expects overall car sales to grow by double digits in July-September versus a year earlier. Makers such as Toyota, Honda and Geely saw sales jump in the just-finished quarter. GM has seen its China sales suffer in a crowded market and slowing economy. To revive its fortunes, it plans to have electric vehicles (EVs) make up over 40% of new models in the next five years in China, where the government promotes greener cars. The automaker's Wuling Hong Guang MINI EV, a micro two-door EV with a starting price of 28,800 yuan ($4,200), was China's biggest-selling EV in August. GM's sales fell 15% in 2019 from a year earlier to 3.09 million vehicles. The automaker delivered 3.65 million vehicles in 2018 and 4.04 million in 2017. Related Video:

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.

2020 Cadillac CT4-V First Drive | The Cadillac of compact Cadillacs

With the launch of the 2020 Cadillac CT4, GM is pushing back into the smallest luxury sedan segment that in recent years has almost exclusively featured entries from Germany. We're pleased to see it return, and importantly, that it definitely came back prepared. The CT4’s key differentiator is its platform. Unlike the bulk of entry-level luxury sedans currently on the market, the Cadillac rides on a rear-wheel-drive platform. All-wheel drive is available throughout the lineup for those who need (or just want) four-season flexibility, but itÂ’s meant to be a convenience feature rather than a performance upgrade — the same is not true of its front-wheel-drive competitors. The CT4 ostensibly replaces the discontinued ATS, but reality is a bit murkier than that. Stop us if youÂ’ve heard this before, but the Cadillac CT4 is not entirely size-appropriate for the class. While the CT4 is aimed at the subcompact luxury sedan segment (and the CT5 at the compact), itÂ’s dimensionally a bit closer to the likes of the Mercedes C-Class than it is the A-Class. This gives Caddy a bit of an advantage, but itÂ’s nothing we havenÂ’t seen from GMÂ’s luxury arm before. Cadillac has chosen instead to target the segment based on price, which is a win for consumers in a way, as you can get a little bit more bang for your buck if theyÂ’re willing to take a chance on the underdog. Cadillac is offering its new small sedan in three states of tune. The base (“Luxury”) model boasts a 2.0-liter engine good for 237 horsepower and 258 pound-feet of torque. The Premium Luxury and CT4-V models get the 2.7-liter — which is still a four-cylinder — that makes 310 hp and 350 lb-ft of torque in its base tune and 325 hp and 380 lb-ft in the CT4-V. All three variants make use of GMÂ’s active fuel management tech which allows them to run on just two cylinders to conserve fuel while cruising. Yes, you read that correctly. The CT4-V boasts just 325 hp, which may seem like a pittance considering the outrageously powerful V models of CadillacÂ’s past, but GMÂ’s luxury arm has decided to re-jigger its performance hierarchy by eliminating “V-Sport” entirely, shifting “V” down to fill that role, and introducing a series of new range-topping performance models dubbed “Blackwing.” In that context, the CT4-V may seem like an also-ran, but consider the company it keeps.