Once upon a time, the Cadillac name had cache. In America, the name was used in an idiom to describe something as being the most luxurious or highest quality of something, as in something like, “The Braun Brewsense is the Cadillac of coffee makers.” However, Cadillac has been struggling to hold its status over the past couple of decades, and now General Motors is selling the Cadillac XT4 in China for close to the same price as a Nissan Kicks in the US. The 2025 Cadillac XT4 in China has just been released with a price tag of 159,900 yuan, which is just over $22,000 at the current exchange rate.
- Base Trim Engine
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2L I4 ICE
- Base Trim Transmission
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9-speed automatic
- Base Trim Drivetrain
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Front-Wheel Drive
The Race To The Bottom
If you’ve not heard the term “race to the bottom” before in a consumer goods sense, it refers to the heightened situation of companies competing with each other on price over everything else, often leading to lowered costs by reducing standards and quality to undercut the competition. While the Chinese market was seen as lucrative due to the number of people in the country, demand for cars isn’t rising.
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At the same time, the market has been saturated by the Chinese government’s determination to keep factories turning over while many countries block Chinese imports to safeguard their homegrown automotive industry. Countries that have blocked Chinese imports include the U.S., with the Biden administration going as far as to put a 102 percent tariff on Chinese-made electric vehicles in 2024.
The Cadillac XT4 Ceased Production In The US
While you may be able to pick up an XT4 left over at a dealership, Cadillac ceased production of the XT4 here in January. However, the Chinese version seemingly only has minor differences in features beyond the 1.5-liter engine over the US’s 2.0-liter four-cylinder. Still, the top-trim Chinese version costs 189,900 yuan, which is just over $26,000. In the US, the top trim starts at $41,990.
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It may be hard to believe that the Chinese version of the XT4 would be of equivalent quality and feature-rich as the U.S. version, but it looks like it has the same 33-inch, 9K ultra-wide curved display that melds together the main infotainment screen and the digital dashboard cluster. It also includes luxuries like heated, ventilated, and massaging seats and can be optioned with the AKG audio system with active noise cancellation. The smaller engine produces a reasonable 211 horsepower and can be upgraded to a 2.0-liter turbocharged four-cylinder making 237 hp.
The Big Bet On China Isn’t Paying Off
Around 2009, global automakers got excited about accessing the Chinese market when it became the largest auto market in the world for the first time, but the meteoric rise of the Chinese market appears to be over, leaving brands like Cadillac desperate for sales. GM isn’t the only automaker to invest heavily in manufacturing, sales, and marketing operations in China. Now GM appears to be caught out as China accounted for around half its total worldwide sales in 2024, but the market isn’t growing at a great rate anymore, while homegrown and often government-subsidized brands are eating up market share.
H/T: CarScoops
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