Cadillac sales have had their biggest gain since 1976, when Gerald Ford was president, the U.S. celebrated its 200th birthday and The Hustle won a Grammy.
General Motors’ luxury brand’s deliveries gained 40 percent in May to 13,808 vehicles on demand for new ATS and XTS sedans, which accounted for 41 percent of deliveries. That was the brand’s best May since 2007. Through May, Cadillac increased 38 percent to 69,750, the biggest year-to-date increase since 1976, when GM sold 135,258 Cadillacs, a 45 percent gain. The Hustle by Van McCoy was released in 1975 and won best pop instrumental performance at the 1976 Grammys.
“Think about that,” said Kurt McNeil, GM’s vice president of sales operations during a conference call. “We’re talking about the days of disco, when Cadillac was strictly a U.S. brand back then, not one that’s directly challenging the German luxury brands and gearing up to triple its sales in China over the next couple of years.”
GM is counting on Cadillac to help increase profit with sales to higher-income buyers. The company is positioning Cadillac and Chevrolet as the automaker’s two global brands, with Chevy for the mass market. Seventy percent of U.S. ATS customers are buying their first Cadillac while 50 percent are trading in a vehicle from another manufacturer, GM said.
GM ranks fourth in U.S. luxury-vehicle sales, behind Mercedes-Benz, BMW and Toyota’s Lexus division.
Mercedes sales rose 9.8 percent to 24,713 last month, while BMW posted a 14 percent increase to 25,230. The May results narrow Mercedes’s 2013 lead to 4,178 vehicles as the two German automakers compete for the sales crown BMW has held for two years, based on reported sales. Counting registrations, Mercedes topped BMW, according to auto industry researcher R.L. Polk & Co.
Mercedes sales for the year through May gained 11 percent to 117,535, German parent company Daimler said Monday. BMW’s 2013 deliveries rose 8.2 percent to 113,357. The results don’t include Daimler’s cargo vans and Smart cars and BMW’s Mini brand, which aren’t luxury vehicles.
BMW’s sales of 3 Series sedans rose 47 percent to 9,307, helped by the new 320i, which starts at $32,550. The model is attracting 60 percent of its buyers from other brands, including Honda and Acura brands as well as Mazda, said Ludwig Willisch, BMW’s chief executive officer for North America.
Mercedes’s results were led by the C-Class sedan, which rose 21 percent to 8,013, and the GL-Class SUV, which rose 41 percent. Results were limited by inventory, as demand exceeds dealer supply, the company said.
Lexus reported a 3.6 percent increase for May, to 22,229, as deliveries of the ES sedan more than doubled to 5,890. Lexus, which was the annual sales leader for 11 years until natural disasters in Asia curtailed 2011 output, said it has sold 97,060 vehicles this year through May, a 10 percent gain.