2013 Cadillac Ats Performance on 2040-cars

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GM to build $1.3 billion Cadillac plant in China

General Motors has gotten approval to build a $1.3 billion manufacturing facility for its Cadillac brand in China. China's National Development and Reform Commission signed off on plans for GM to build the plant in the country's Shanghai's Jinqiao zone; construction is expected to begin in June of this year. According to a Bloomberg report, the plant will have an annual production capacity of 150,000 units.
No surprise here, but Cadillac would like to sell a lot more cars in the plush Chinese luxury market. The brand moved only 30,010 cars in China last year, compared with 400k for Audi, and about 330k for BMW. With Cadillac already telling us that it would be moving production of its XTS sedan to China - a production decision that saves having to pay 25-percent import tariffs - approval of the factory is a critical win for the company.
In fact, according to earlier comments by GM China president Bob Socia, it's at least conceivable that Chinese-built Cadillacs could be shipped back to the US for sale. The brave new world of globalization, getting stranger by the minute.

Despite strong profits, GM still fighting flat market share

Looking at the progress General Motors has made since it entered bankruptcy, it's easy to forget that the company still has a long way to go before it's the juggernaut it once was. A recent report from Reuters points out that, while GM is making money, it isn't making any gains in terms of US market share. Quite the opposite, really. Consider this factoid: In 1963, nearly half of the cars sold in the United States were from Chevrolet, Cadillac, Buick, GMC or Pontiac. Now, the company's US market share is stagnant at 17.9 percent. That same number is half of just Chevy's 1963 market share. This is all despite GM going on a binge replacing or updating its models. "Market share increases are not instantaneous," Mark Reuss told Reuters at the 2014 Detroit Auto Show. "We've got a lot of baggage. Don't underestimate what people though of us, or these brands, through these hardships and 30 years." The reasons for the stagnant market share are numerous. Reuters points out that retooling of factories and a focus on limiting incentives are both good things for profit, but not necessarily for market share. There's also the troubling turnover of the brand's marketing department. These issues don't change the fact that Chevrolet has lost 1.4 percent of its market share in two years, and that Cadillac - arguably GM's most improved brand overall - has lost 1.2 percent in the same period. Part of that can be blamed on GM's avoidance of fleet sales in favor of more profitable customer sales. "Our focus has really been on retail and that's where we've got the growth," said Alan Batey, GM's interim global marketing boss. "We want to grow GM and that means growing market share and profits, but it's not at all costs," Reuss said. News Source: ReutersImage Credit: paul bica - Flickr CC 2.0 Earnings/Financials Buick Cadillac GM GMC sales profits

GM's Mark Reuss explains why a performance Cadillac ELR-V won't happen

Hey, I've got enough things to worry about. That's one interpretation of General Motors executive vice president Mark Reuss' response to a question posed by Driving the Nation about the recently-introduced Cadillac ELR plug-in hybrid. Reuss said GM will "definitely expand the tuning envelope" for the ELR. The question was whether GM would consider adding magnetic ride control to the quite-powerful-for-a-plug-in Caddy, creating an "ELR-V" model in the process. Reuss' non-answer: "Good question, can't really answer that," but then elaborated that magnetic ride control uses up "a lot" of power otherwise spoken for in terms of providing the longest electric-only range possible. Interestingly, he did add that GM will "definitely expand the tuning envelope" for the ELR, as you can see in the video below. With the model retailing for north of $75,000, fewer than 60 percent of US Cadillac dealers were carrying the ELR as of last month and just 99 ELRs were sold during the first two months of the year. In an effort to sell more vehicles, GM said in January that it would offer the ELR for a 39-month lease for $699 a month for qualified lessees and with a $5,999 down-payment required. Autoblog's First Drive impressions of the ELR can be found here.