Cadillac intends to publish a separate earnings achieving profit margin of 10%

Posted on 11/21/2014 3:20:32 PM

John Benny Chen, president of Cadillac luxury brand Cadillac GM is committed to transforming its independent financial report will be published in 2017, and to achieve the goal of doubling sales by 2020.
When Benny Chen said in an interview at the Los Angeles Auto Show, held yesterday, the next three years, the company will focus on investment products, distribution rights and problems of mass production, which may dilute the GM's overall performance. But in 2018, the contribution of Cadillac GM will equally with other brands, in 2020, their profit margins will reach over 10%.
He also said that the redefinition of the status of the stage of luxury car brand in the world, Cadillac accept slower sales growth reality. The current average price is $ 47,000 Cadillac, BMW price is only a difference of $ 1,000. In the high-end models, the high-end Cadillac XTS flagship sedan is priced at $ 70,000, which is the high end models from BMW and Mercedes-Benz is a difference of several hundred thousand dollars. Benny Chen hopes to use bold,, Cadillac optimistic American style resort confident, but to continue opening the Chinese market.
He said that global annual sales of Cadillac is likely to achieve 2020 500 000. Automotive Supplier Autodata Corp Statistics data shows that so far this year, Cadillac sales in the US fell 4.6 percent, only 141,452 vehicles.
huge investment
Automotive research firm AutoTrends Consulting analyst Joe - Filippi (Joe Phillippi) recently said: "Let the world one percent of the population to become the Cadillac of their clients spend a lot of effort and time Cadillac has been moving in this address for 14 years. so far only just passed the midway. now they want to achieve this goal, you will spend seven to ten years and a lot of investment. As Nigerian President Chen said Cadillac, the battle the next six years would cost $ 2.5 billion GM.
Cadillac De Chen, president of Nigeria has said that the Cadillac brand vehicles only covers half the global market for luxury cars. It is known that at the recent meeting of the LA Auto Show, Cadillac has announced a new high-performance version of the ATS models. For 2020, the Cadillac market coverage will reach 90%. In the New York Auto Show in April next year, will launch CT6 Cadillac flagship sedan. The company also expects to sell for $ 250,000 to launch a flagship sedan in 2029.
He said Cadillac will also take advantage of a new campaign to improve brand image and clear. Benny Chen took office in August, when Cadillac, said he came to understand employees understand Cadillac's image through questionnaires.
Benny Chen said: "If I ask ten people the same question, I will get eleven different answers if we do not know what is represented Cadillac, how can we expect customers to understand.?"
Analyst at US auto website Mike Child - Clay Booth (Krebs Michelle), said the luxury car buyers do not think Cadillac in the automotive industry is the high-end brands, but the "Cadillac already has a high-end models in the long corner. you have to create a place where customers are willing to deepen their pockets image for expensive brand. at the time, like a luxury car buyers are reluctant to purchase a brand competition in Germany and buy Cadillac. "
When General Motors current president Dan - A Manen (Dan Ammann) as chief financial officer when, in order to allow senior managers to be more intuitive to see the company make money and spend money where he reorganized the system of reporting internal financial company. This ultimately led Cadillac for its investment behavior, responsible spending and revenue, and at the same time with other GM brands separate.
Benny Chen said that Cadillac might have to wait until 2017 until they release earnings separately, "Dan (referring to the CEO of General Motors) in no hurry to proceed."
high profit margins
Benny Chen also said that while more than one brands of high-end cars account for only 10-12% of global sales, but its earnings half the auto industry as a whole posted. Generic companies now want a piece of the luxury car market.
General Motors CEO Maria - Barbara (Mary Barra) tells Benny Chen De, which will have enough to become a brand of luxury cars worldwide Cadillac time, the company will do whatever it takes to complete creating brand image.
Benny Chen said, "because it is a long term investment, we must have a little patience to get traction. If you are too anxious, you may have to repeat the mistakes of the past."

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