• by Karl Greenberg , December 13, 2010

General Motors' luxury brand will race its V-Series performance sports cars in the Sports Car Club of America (SCCA) World Challenge GT Series.

The program returns Cadillac to the arena after a three-year absence. The division first entered the series in 2004 to race and promote the CTS sedan through 2007. Now the company will compete in the upcoming SCCA World Challenge GT Class with the CTS-V Coupe.

Jim Campbell, VP performance vehicles and motorsports for GM, said racing helps Cadillac connect with enthusiasts. "When we couple passions with vehicles, it works magic; it helps us connect with the right target, it helps us deliver on product excellence because what we learn at the racetrack gets translated into product. The ability to link engineering findings on the race side with the production side works because we have other programs in the company where it works very well, such as with Corvette."

The announcement comes after Cadillac signed as title sponsor of the World Golf Championship golf tournament at Doral. "We are bringing Caddie back to major venues and platforms," says Don Butler, VP marketing for the brand. "For the first time this year, we have advertised the V-Series on TV, which is quite a significant move for us because it enhances both the V-Series and the Cadillac brand because it's a halo -- an umbrella for Cadillac." Cadillac also hired Ritz-Carlton this year to enhance customer experience at 200 Cadillac dealerships around the country.

Butler said the timing of the decision to re-enter racing had to do with the car. "We have the right product," he said. "In the past we raced with the CTS-V sedan for a couple of years and when we were moving to the next-generation vehicle, we didn't have a program quite ready."

He adds that the Escalade SUV is now 30% of the luxury SUV market. According to Butler, the newest version of the SRX wagon is now the second-best-selling luxury wagon, up from ninth place for the previous version. He says the CTS line has experienced a 97% increase in sales this year. The company launched a CTS coupe this summer and V-Series performance wagon this fall.

But Cadillac still has a lingering problem with how consumers perceive the brand, an old stubborn association with big luxury yachts on wheels. "We are the fastest-growing luxury brand in the U.S. market but we know we still have a challenge in terms of convincing people who may still associate us with Cadillac of the past -- 'floaty boaty,'" he says. "So racing presents us to customers in way that validates Cadillac as standard of the world. With TV exposure and the social media aspect of it, our ability on the track will build our brand and generate positive word of mouth."

The company will unveil the race version of the CTS-V at the North American International Auto Show in Detroit in January. The first race in which Cadillac competes will be in St. Petersburg, Fla., in March.

Other manufacturers competing in the race series include BMW, Porsche, Dodge Viper, Volvo and Aston Martin. "They are formidable," he admits, "but luxury buyers are looking for a demonstration that you can win against the best; it lends credence to the brand."