General Motors plans to open 40 new Cadillac dealerships in China, adding to their existing network of around 160 dealers, as part of their drive to compete against China’s luxury brand leader, Audi.
The expansion plan is part of the American automaker’s plan to open 400 more showrooms across its brands in China next year, bringing their total showroom count to around 4,200.
According to Bloomberg, GM’s CEO Dan Akerson is pushing for the worldwide expansion of the Cadillac brand as part of their effort to raise profit margins and to compensate the risk of declining sales in the highly-profitable truck segment.
Besides expanding their dealer network, the brand plans to add a new Cadillac model every year in China through to 2016.
However Cadillac has a long way to go in challenging Audi, as the American luxury brand sold a mere 27,073 units in January to November 2012, whereas Audi managed to move 370,559, BMW a close 295,974, and Mercedes-Benz managed 177,301 in the same period.