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General Motors' struggling Cadillac division is hoping that bigger is better.
While luxury competitors have been scaling down their offerings, Cadillac announced on Friday that it would add a new, larger sedan to its lineup next year, which it hopes will lure wealthy trendsetters.
GM did not release specifics of the yet-unnamed flagship sedan, but the automaker described it as a "top end, high technology" car intended to compete with the best from German rivals.
"The objective for this upcoming model is to lift the Cadillac range by entering the elite class of top-level luxury cars," Cadillac's president, Johan de Nysschen, said in a statement.
The new car will take aim at the BMW 7 Series, Audi's A8 and the Mercedes S-Class - the top of each competitor's lineup. Those sedans carry price tags starting in the $75,000 range and can exceed $100,000 for the most feature-laden configurations.
But while the luxury auto market has been surging this year, Cadillac has been left behind.
Through August, Cadillac's overall sales were down 5 per cent this year compared with a year ago, and the company's sedans have fared even worse, down a combined 15 per cent through August. The entry-level ATS sedan, though widely praised, has not taken off with buyers. Its sales were down 20 per cent; the larger CTS sedan was down 6 per cent.
The entire market for luxury vehicles in the US has risen 14 per cent over the same period, according to the auto research firm AutoData. Audi sales are up 15 per cent, BMW up 12 per cent and Mercedes-Benz up 9 per cent this year through August.
"Cadillac still suffers from more of an older demographic," said Jessica Caldwell, senior analyst with Edmunds.com.
Cadillac has also suffered from a seemingly endless cast of executives rotating through its top positions. In July, the company looked to the outside, hiring de Nysschen from Nissan's Infinity division in an attempt to bring fresh ideas and long-term stability to Cadillac's leadership.
Mr. de Nysschen is best known for his work at Volkswagen. He played an important role in transforming Audi into a true luxury competitor. Cadillac wants to be seen similarly as among the best luxury brands in the world.
One bright spot for Cadillac is China, where it sold more than 50,000 vehicles last year. The new sedan aims to capitalize on that market, said Xavier Mosquet, head of the Boston Consulting Group's automotive practice.
Mr. Mosquet said that the European market had no appetite for large cars, and while Americans did, the number willing to buy an ultraluxury Cadillac was not large enough to justify the investment in the new model. Chinese buyers, on the other hand, are not only snapping up larger, more luxurious vehicles, but are also open to switching from one auto brand to another.
"Many in China are now first-car owners," he said. "People are now about to make new choices, and many of them want to upgrade."
Mr. Mosquet said that even though only the elite in China were likely to be able to afford the new flagship Cadillac, the aspirational effect for lower-tier buyers would be important. With so much of the Chinese market up for grabs, and no long-ingrained loyalties to weigh down buyers' decisions, Cadillac has a chance to establish a reputation in China that matches that of the Germans.
Production of the new Cadillac will begin next year in the fourth quarter. It will be assembled at G.M.'s Detroit-Hamtramck plant, which currently builds the Chevy Volt, Impala, Malibu and Cadillac ELR. The company plans to unveil the new model in the first half of 2015.
©2014 The New York Times News Service
