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From sleek new sports cars to hefty trucks, the international auto show had something for everyone. USA TODAY
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A 2018 Cadillac XT5 Platinum Edition is seen on display on Tuesday, January 16, 2018 during the 2018 North American International Auto Show at Cobo Center in Detroit.
(Photo: Ryan Garza, Detroit Free Press)Buy Photo
Cadillac is hustling to add crossovers to its lineup, with the smaller XT4 reaching dealer showrooms this fall, and a larger, three-row seating model likely to debut in spring 2019, Johan de Nysschen, president of General Motors’ luxury brand said Tuesday.
But 2018 could be another year of painfully slow sales in the United States before GM can hope for a boost from the desperately needed new vehicles.
Cadillac sales fell 8% last year from 2016, but sales of its newest and best-selling model, XT5, soared by 73% to 63,312. That’s more than twice the volume of its next most popular model in the U.S., the Escalade.
Speaking Tuesday at the Automotive News World Congress, de Nysschen made clear that Project Pinnacle, the $12 billion investment and 10-year journey to convert Cadillac into a global luxury player, depends heavily on China, its largest market.
More: Cadillac banks on XT4, flood of new SUVs to reverse sales slide
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“Profits generated in China are funding our development in the U.S.,” de Nysschen said. Cadillac sold 175,489 vehicles in China last year, compared with 156,440 in the U.S. The brand is expected to surpass 200,000 sales in China this year, he said.
The new XT4 compact SUV is to be ready for sale by the fourth quarter. That will give Cadillac an entry in the hottest part of the global luxury market. It will compete with such vehicles as the BMW X3 and Audi Q5.
The product pipeline opens up a lot in 2019. An as-yet unnamed three-row, family-carrying SUV will debut in the second half of 2019 to compete with vehicles like the Volvo XC90 and Audi Q7.
Cadillac President Johan de Nysschen attends the opening of Cadillac House in New York in June 2016.
(Photo: Richard Drew, AP)
An all-new version of Cadillac’s Escalade full-size SUV is also expected sometime in 2019 or 2020.
De Nysschen said Cadillac intends to introduce, on average, one new model every six months through the end of 2021.
Replacements for the compact ATS and midsize CTS sport sedans will also debut in 2019. They will get new names to bring them in line with Cadillac’s alphanumeric nomenclature, probably CT2 and CT4, respectively.
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Part of Project Pinnacle’s objective is to upgrade the physical and customer service environment within its 924 dealerships. But profitability for some dealers is a challenge because Cadillac has two to three times more dealers than its German and Japanese rivals.
De Nysschen said that 463 dealers — half — sold fewer than 50 Cadillacs last year. He has walked a fine line between buying out smaller dealers and asking them to make investments they may struggle to afford.
“I am totally committed to improve communications” with dealers, de Nysschen said. “At the same time, we have to hold people accountable.”
Through a new advertising strategy aimed at younger buyers, Cadillac is now selling nearly half its vehicles in the U.S. to customers younger than 56.
De Nysschen said Cadillac is interviewing candidates to replace chief marketing officer Uwe Ellinghaus, who resigned in December for health reasons.
Contact Greg Gardner: 313-222-8848 or ggardner99@freepress.com. Follow him on Twitter @GregGardner12.
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