Cadillac Marketing Chief Forecasts Record China Sales

NEW YORK— Soaring sales in China are transforming that market into Cadillac's biggest export point, says Don Butler, vice president-marketing of the GM division.

He tells WardsAuto here Cadillac will sell 26,000 vehicles in China this year, easily eclipsing the 2010 total of 17,000 units. “Our original target was 2,000-3,000 units per year.”

Would-be buyers can run Cadillac CTS-V on private track.

That augurs well for Cadillac, because China will account for 40% of luxury-car sales by 2020, he says. Given the trend of sales growth, Cadillac eventually will sell more vehicles in China annually than in the U.S.

“We need to think of ourselves as a global brand,” says Butler, who joined Cadillac in March 2010. Last year, Cadillac sold 180,000 vehicles, 20% outside of the U.S. “That's the largest (export total) in our history.”

But Butler has more limited ambitions for sales growth in Europe. “We'll have a meaningful presence there, but we won't have the footprint that the Germans have here,” he predicts. “Our presence (in Europe) will be boutique-like.” Cadillac will stand for luxury and exclusivity in that market.

Butler plans a 3-prong marketing thrust to grow global sales, promoting the brand at golf, skiing and auto racing events.

Besides participating in racing, Cadillac is appealing to performance-driven customers by inviting them to a series of events where they can run CTS-V cars on private racetracks. Cadillac's V-Series performance-lab events are scheduled to take place in Atlanta, Los Angeles and Las Vegas in October and December. Cadillac also has scheduled an event at Monticello Raceway in New York.

“I am always happy to put my money where my mouth is in terms of putting people behind the wheel and letting the products speak for themselves,” says Butler, who is confident the 556-hp CTS-V can give most customers all the performance they can handle.

Cadillac also is sponsoring a Culinary Challenge and Innovation Golf Clinics featuring celebrity chefs and top golf pros. Cadillac vehicles are on display at each event and can be tested against BMW, Lexus and Mercedes models.

“We're building into these programs the same depth of experience we put into our cars,” says Steve Haener, national advertising and promotions manager. “Shopping for a luxury car can be an all-day ordeal, driving from dealer to dealer. Here we have a good time, do the things we're passionate about and let the cars speak for themselves.”

Butler says the brand is aiming for segment leaders. “There we have a proven track record of success.”

The CTS is running close to the Mercedes-Benz C-Class in sales, and the SRX only trails the Lexus RX 350 in the premium midsize crossover/utility segment, he notes.

Butler’s vision of future Cadillac vehicles will stress provocative, bold and audacious designs evoking emotional responses from luxury-car buyers. “We can't do vehicles that blend in with the scenery. Every (Cadillac) will be designed to be a winner.”

Cadillac seeks to reclaim its iconic image as the auto industry’s luxury standard, he says, but intends to modernize that image and make it relevant to today's car buyer.

Butler emphasizes that Cadillac’s luxury pedigree doesn't mean it must be anchored to its glory days of the past.

Through Aug. 31, Cadillac sales were 9% ahead of like-2010. August deliveries rose only 4%, but he points out retail deliveries soared 17%. Butler purposely is scaling back fleet sales to focus on profit margins. Overall, Cadillac “is a little bit ahead of its (2011 sales) target.”

He is encouraged because even though showroom traffic is down – possibly because of stock-market gyrations – closing rates are higher. That indicates that a customer who has crossed the showroom threshold already has made up his or her mind to buy, and is focusing on which vehicle to select.

Butler believes that also means the customer experience will be the next battleground in luxury marketing.