What Do YOU Think Is The REAL Problem At Cadillac?

What Do YOU Think Is The REAL Problem At Cadillac?
Here we go again. It seems that General Motors is plagued with a crisis every handful of years that nearly brings the automotive giant to its knees. This ignition recall has really grinded the little progress the company made to a halt.

Cadillac was one of the shiny little pieces in the GM toy chest. While other brands were shuttered or significantly diminished, GM always made sure that Cadillac stood the test of time. But it seems that in recent months things have become a bit unstable at the luxury brand.

This week its head of U.S. sales stepped down and Cadillac's Global Chief, Bob Ferguson, has been ordered by CEO, Mary Barra, to report to D.C. to stanch the bleeding due to GM's recall woes.

Looking at the most recent sales data, its clear that there is a bit of a sales problem. The ATS, which was supposed to be the brand's savior is down more than 23 percent year-over-year and over the five-month calendar year, ATS sales are down more than 20 percent. The XTS isn't doing any better.

The two bright spots in the product portfolio are the CTS and SRX, which are both in the green for 2014. The Escalade we'll have to wait and see, and the ELR is a complete failure.

Given everything that's going on GM, this got us thinking: What REALLY is the BIG problem at Cadillac?

In recent memory, to us it seemed like it was on a solid track for a while there and now it's starting to come apart slowly. Is it experiencing a PRODUCT problem? A SALES problem? Or, something else?

Weigh in below!


Leadership of Cadillac is in flux with the luxury brand’s top executive dispatched to Washington and the search beginning for a replacement for Bill Peffer, Cadillac’s head of U.S. sales, who left this week after less than a year on the job.

Soon after GM’s ignition-switch problems surfaced in February, CEO Mary Barra dispatched Cadillac global chief Bob Ferguson to Washington to help address the political fallout of the deadly defect.

Ferguson was GM’s top lobbyist from 2010-12, and there’s speculation that he might not return to the full-time Cadillac job...


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chewychewy - 6/20/2014 11:41:28 PM
+1 Boost
Well the ATS and XTS were both new entries and I am assuming had that brand new surge that has worn off somewhat the second year and are now selling at their "true" sales pace. Not exactly something that looks good to shareholders but is the reality of the situation. If anything it proves that both vehicles were launched well.


rgiorgiorgiorgio - 6/20/2014 11:49:45 PM
+3 Boost
Price. GM's new philosophy seems to be price it higher and people will thinks its better. It just seems if you like a car from GM, it needs to $50k or more. Look at the new Escalade commercial, really? for a $75k vehicle. People who spend $50k or more to spend on a car are not responding to GM's marketing. They are more educated than what is being fed to them. I own 2 GM vehicles and enjoy them. I am a fan of GM, but they are headed in the wrong direction by trying to squeeze everything they can out of the consumer. There is too much profit margin in the Silverado/Sierra, Tahoe/Yukon/Escalade, Cadillacs, which is forcing me from brand loyalty where i would consider a different manufacturer.


JDMUSMuscleJDMUSMuscle - 6/21/2014 12:00:55 AM
-5 Boost
Price it higher and it will sell.

Actually, there have been many successful cases of this for the European luxury brands.

But not really for the American.

We all know why.


JDMUSMuscleJDMUSMuscle - 6/20/2014 11:59:49 PM
-5 Boost
The problem is with the American way of thinking. They are so damn greedy, I noticed Caddy and Lincoln both seem to price their cars so high, thinking they actually can match the Japanese or the German luxury brands.

And I call it arrogance. No one (Including the Americans) really thinks of "luxury" when you think of the American brands (Try and see if there are American luxury brands that can match the brands from Europe or Japan. And I am not only talking about cars).

Cut down the prices of Cadillac and Lincoln, and price them like you throw them away (Because hey, no American vehicle should be worth a lot. Caddy and Lincoln should be even cheaper than HYUNDAI)

The Europeans understand heritage, luxury, history, craftsmanship, value and many other things, which is the reason why 70% of luxury brands in this world are all from Europe, and even with that, the luxury brand economy is merely "3%" of the entire GDP of the European countries as far as I know. They take pride in their LVMH, BMW, Porsche, Mercedes-Benz, Audi, Aston Martin, Bentley, Rolls-Royce, Jaguar, Land Rover, Patek Philippe, Bugatti, Rolex, Omega, Ferrari, Lamborghini and the list goes on, and on, and on, and on.

America? Well, America also has a lot of things to offer. Hollywood, Justin Bieber, McDonald's, Kim Kardashian, Walmart, Chrysler, Netflix, etc. Ya.

Now you see my point? Just cut down the prices of Cadillac, and they should sell more. I mean, they sell junk anyway, why do they seriously think they deserve the European-brand-level price? CTS should be priced at like 25k, like Mustang.


JDMUSMuscleJDMUSMuscle - 6/21/2014 12:26:25 AM
-5 Boost
I might consider buying a CTS if it was priced at around 20K or less. And the new Escalade should be around 30~40k.


trmckintrmckin - 6/21/2014 11:31:22 AM
0 Boost
You were almost on point until this.... "Because hey, no American vehicle should be worth a lot. Caddy and Lincoln should be even cheaper than HYUNDAI"

You can make the European/Japan lux argument all day but that comment is foolish.


JDMUSMuscleJDMUSMuscle - 6/21/2014 4:16:47 PM
-5 Boost
That comment is foolish...let's see.

Ignition issues with GM, tons and tons of safety issues for decades with Chrysler vehicles, bailout money for those two junk automakers, etc.

And yet, asking a lot of money from the customers.

Now let me ask you. Do those American automakers deserve the PRICE that they ask for? You be the judge.


trmckintrmckin - 6/22/2014 12:24:53 AM
+1 Boost
Go but a Hyundai and a caddy. In 5 years, come back and tell us which one you are itching to get out of.


w222w222 - 6/21/2014 12:57:16 AM
0 Boost
Expensive, perceived un-reliability, unattractive exterior, cheap looking interior, lack of soul,and no loyal user base.
They make good cars if priced more equivalent to Acura or infiniti.
The more expensive a car is the more informed the buyers and more choices they have.
And evidently no one is cross shopping a Benz or audi with a caddy.


cidflekkencidflekken - 6/21/2014 1:56:08 AM
+1 Boost
In my personal opinion the biggest problem for Cadillac is the lack of focus on the complete package.

Specifically referring to the ATS and CTS. Both of these cars are, indisputably, the best-handling sedans in their respective classes, and maybe any class. At the same time, nothing else about these cars stood out from their competition and both had similar criticisms of lack of rear seat space, frustrating CUE, and, for the ATS, bad transmissions. Not to mention that, to me, I feel the styling went backwards when both cars were spawned from the last generation CTS, whose styling was nicely modern while still echoing vintage Cadillac. The ATS looks like a previous CTS and previous Camry had a love child. The current CTS looks good in "posed" photos, but on the road, it looks like the Cadillacs of old. Unlike the E/5/A6 which all have modern designs, but echo successfully back to their classic lineage, without looking dated.

Bottom line: Cadillac paid way too much attention on building cars to drive, instead of building cars to own.


BoomsluiBoomslui - 6/21/2014 4:24:23 AM
-1 Boost
Cadillac is too much a wannabe-BMW. That does not fit the objective attributes nor the subjective brand heritage. They should recognize that they can never become a better BMW, but should focus on becoming a better Cadillac. Cadillac once stood for innovative technology, luxury comfort (not sport). And accept that Cadillac never is able to get a foot in Europe, instead focus on the US and China.


JDMUSMuscleJDMUSMuscle - 6/21/2014 4:38:47 AM
-8 Boost
Exactly my point.

I think there is a trend, that the Americans try so hard to be like Japanese, or European. Aka being a "wannabe".

But as always, miserably failing at doing it.

And why would the Americans try to be someone that they are not?

Because the United States has lost all their confidence in their own country.

I guess you can't really help it when you see a lot of rich and famous Americans "choosing" to receive the knighthood from the English Queen, all to have the title "Sir" in front of their name.

And when you check out the website Celebrity Car blog, you wonder yourself just how many Hollywood celebrities own Range Rover, Rolls Royce Ghost and Mercedes G Wagon, because almost every one of them has those.

And you RARELY see them driving American cars. Only some classic 70's Mustangs or Chargers.


trmckintrmckin - 6/21/2014 11:59:59 AM
-1 Boost
Oh boy... Celebrity car blog references again.... Moving along....

Cadillac and Lincoln are struggling for reasons that go far beyond brand perception. Those vehicles typically draw buyers in their late 50s and early retirees. Problem with that, the baby boomer generation historically has been one of the worst generations when it comes to retirement, savings, and money management. Many in this generation will never be able to retire. The customer base for caddy and Lincoln is shrinking. Not from a population standpoint but from a $ perspective. Cadillacs offerings are different from the euro and Japanese brands and are fine in their own right. Iincoln however is way behind. Honestly don't know how they have survived this long. This isn't a GM arrogance issue. It's a society issue and caddy has to hope they can survive long enough to make it through the baby boomers.


JDMUSMuscleJDMUSMuscle - 6/21/2014 4:15:32 PM
-8 Boost
Of course.

Because all you told me was that the millionaires in the U.S. drive Ford pick up trucks?

You think that is more convincing than my actual proof with pictures? You be the judge.


trmckintrmckin - 6/22/2014 12:29:38 AM
-1 Boost
No, I think it's funny you use celebrities as a measuring stick for the general public. They couldn't be further from the norm. I know it's difficult for you to believe but forbes has written several articles on the topic. Many celebrities are millionaires but not all millionaires are celebrities. It's a big country and world. Get out a little.


BoomsluiBoomslui - 6/21/2014 6:30:04 AM
+2 Boost
Yes, try to rediscover, or redefine, a distinctive American Style of Driving for Cadillac.

"Cadillac, a car with comfort and charisma"


JDMUSMuscleJDMUSMuscle - 6/21/2014 7:17:58 AM
-3 Boost
Agreed. The real Caddy is the ones from the 70's.


TomMTomM - 6/21/2014 7:21:17 AM
0 Boost
For the American Market - the problem is that the ATS and CTS both have deficient rear seat room - and both need far more trunk space.

When the CTS was at the low end - it had superior room to the Bmw3/MBcclass/Audi4 group. But the ATS may as well be a 2 seater since only kids can sit in the back seat. And given the chance to increase the room in the CTS when they moved it upmarket - they didn't.

For that group that drives the cars fast and doesn't care about a back seat or trunk - it may be OK - but there are still a lot of people who buy luxury cars for the luxury - and neither the ATS or CTS have the room for that.

And Cadillac still does not have the "panache" of the German trio -Plus there is Jaguar - and Maserati now to compete with.

It also may be time to move past the Arts and Science design - which is not getting any younger.


MattDarringerMattDarringer - 6/21/2014 9:35:47 AM
+1 Boost
Have you bothered to see that Jaguar and Maserati have nonexistent sales? Neither brand is even remotely in the hunt. Jaguar is currently bribing dealers NOT to drop their franchise.


valhallakeyvalhallakey - 6/21/2014 8:07:48 AM
+1 Boost
Lack of guts. Agree with a lot of the comments above. Don't try to be BMW or anything else for that matter, try to be Cadillac. Cars like the ATS seem like a compromise by committee car. Edges rounded off etc… which makes it bland in the market place, not to mention the beta CUE system. Build cars like the CIEL, Elmiraj and build them well. Go all the way on things that make a difference to the user/driver/passenger experience. Offer various models of each to help them get established in other markets (example - they need a great line of diesel engines in Europe), hybrid for higher performance models (elec for city, hot rod on the road).


MattDarringerMattDarringer - 6/21/2014 9:32:38 AM
+2 Boost
I love the bigotry of the American bashers...more on (sic) that later.

Cadillac's issues are price and product.

The fact is that the CTS most decidedly IS an American BMW as is the ATS, but they are priced too high. They should be American BMWs with a 15% price advantage. The Cadillac Equinox is not sized right and the Escalade is too obviously a Chevrolet. The quicker the Ciel/Elmiraj goes into production the better. Pulling a new XLR off the Stingray would be a brilliant move as would a roadster off the ATS platform.




Garry44Garry44 - 6/21/2014 10:16:18 AM
+2 Boost
We see the foreign competition moving production to our shores (Mercedes 2015 C Class) AND locating in right-to-work states to avoid the perception (if not the reality) of inflated costs associated with both wages and the "legacy hangover." Moreover, those areas chosen do not have the added baggage of long-term, union driven cost-of-living distortions, e.g., disproportionately higher labor costs across all sectors of the local economy, which manifest themselves in practically every facet of the operational overhead borne by manufacturers. Tier suppliers are ensnared in the same web. Ford has done an admirable job of minimizing these malefactors through carefully crafted public imagery (optics) and the conscious benchmarking of their foreign (not domestic) competitors. The Lincoln marque is their achilles heel, so to speak, due, in large part, to the "out sell" Cadillac mentality that has prevailed since the 1930s. They are STILL focused on "conquest" leases designed to wrest Cadillac owners away from GM and spend ad dollars pulling shrouds off of moribund Cadillac models to reveal Lincoln offerings. Not a winning strategy.

Having said all that, domestic manufacturers have made tremendous strides in terms of quality over the past decade, despite the economic challenges from within and without. I was not a fan of the way in which GM was salvaged, albeit; a straight Chapter 11 would have been preferable. I remain somewhat skeptical of GM's (and Chrysler-Fiat's) ability to remain viable for the out years beyond 2020 when huge CAPEX will be required.


mini22mini22 - 6/21/2014 1:55:56 PM
+3 Boost
The question is this. Is Cadillac a BMW or is it a Cadillac? I think perhaps Cadillac needs to stress it's American roots. Why not bring in some styling from the Cadillac concept cars. Yes real wood and real chrome. Keep the chassis ability, keep the great steering ability, increase the rear leg room in ATS and CTS. Bring out the "Americana".
Don't try to make it a Euro clone. Cadillac should draw inspiration from the late 50's and early 60's models. Bring that styling, bring some of those color combinations. Bring out the big grand convertibles again. They need to create some passion for the marque. Cadillac is not European. It is American. They need to stress that.


Agent001Agent001 - 6/21/2014 3:22:03 PM
+1 Boost
My opinion.

Art and Science design soooo over.
They take forever to bring cars people actually want like Elmiraj.
NO innovation on Escalade. NONE.
ATS is as fake as a Casio.
They're ALL over priced.
They have ZERO cachet withe the up and coming crowd.
What's their answer to the 300c?
Should I go on?

001


JDMUSMuscleJDMUSMuscle - 6/21/2014 4:17:13 PM
-6 Boost
Agreed.


cidflekkencidflekken - 6/22/2014 5:37:03 AM
+1 Boost
001, I think you hit the nail on the head with this one: "ATS as fake as a Casio". There is absolutely nothing that would entice me to buy an ATS over a 3/A4/C/Q50/IS/TLX/S60, unless they were giving them away.


TheSteveTheSteve - 6/21/2014 5:50:16 PM
+1 Boost
'oor states: "...Cadillac was one of the shiny little pieces in the GM toy chest..." -- Not for decades has this been true. Cadillac managers have lost their way in understanding what many people find desirable in a luxury car. That's a big problem when you claim to make luxury cars, and they aren't selling well.

Do you remember when people used to say "That's the Cadillac of X" to signify the best of the best? You don't? Well, people did say that, decades ago.


Agent00RAgent00R - 6/21/2014 6:25:12 PM
-2 Boost
I disagree as the Escalade's first two generations drove sales and profits as did the last-gen CTS.

Cadillac was doing great things until recently. Could it have been a "dead cat bounce?"


JDMUSMuscleJDMUSMuscle - 6/21/2014 6:16:04 PM
-2 Boost
I TRULY want to see Cadillac going head to head with the German rivals.

But just not now. They need to win back the hearts of people right now.


Agent00RAgent00R - 6/21/2014 6:26:11 PM
-1 Boost
Eh, I don't agree with this list of tier 1/2 luxury brands at all.


JDMUSMuscleJDMUSMuscle - 6/21/2014 6:13:33 PM
-2 Boost
The new Cadillac that I see, is a Cadillac that is all about cheapness. Cheap, but that basically means an affordable luxury brand for everyone.

ATS, at around 20k.
CTS, at around 25k.
XTS, at around 35k.
SRX, at around 30k.
Escalade, at around 35~45k.

So basically, the new Cadillac's price is almost the same like Buick, but it doesn't matter. If you prefer Caddy, then you go for Caddy.

By doing so, the American consumers have a lot more to choose from when they shop. I mean, only the Americans would buy something like Cadillac or Lincoln, so they might as well cut down the prices to appeal to them, as many Americans are not financially doing great.

I mean, I would never pay more than 10k for an American vehicle (And I actually never did) since they are built like junk to begin with. So do you, as a consumer, actually believe that it is fair for Caddy to ask you to spend your hard earned 40~70k on it?


W124E320W124E320 - 6/22/2014 12:03:57 AM
+2 Boost
You're a complete idiot....


ParadoXParadoX - 6/21/2014 6:43:17 PM
+1 Boost
Cadillac is doing fine. Keep in mind they do not have the range that their competitors have (yet). They also have not established themselves. It has only been recently with the CTS and ATS that they have made cars that are true competitors to the Germans. It is going to take time before sales take off. If they continue on the trajectory of making truly competitive cars and stick to it, they will see their sales increase. These things take time, it doesn't happen overnight.


carloslassitercarloslassiter - 6/21/2014 7:42:25 PM
0 Boost
Is this really surprising? GM has been in the news as a punchline for months now, and that's generally not good for business.


MattDarringerMattDarringer - 6/21/2014 8:11:04 PM
-2 Boost
we don't judge people who dance with Tina but we're here to help if you decide to "unchem"


MattDarringerMattDarringer - 6/21/2014 8:10:01 PM
-2 Boost
are you seriously equating the excellence of the the ATS and CTS to then rebadged Ford crap at Lincoln? Vapid?


MattDarringerMattDarringer - 6/22/2014 3:18:27 PM
-1 Boost
The MKC and the Escape ARE the same vehicle under different sheet metal. All Lincolns are Fords.


TheDarkLordofCarsTheDarkLordofCars - 6/22/2014 9:59:28 AM
0 Boost
Caddy old engines..older gearboxes...poor fuel economy high price and polarizing sty;e. The dark lord of cars do not think they are dark enough.

To fix Caddy = BE CADDY get 8 speed ZF gearbox make a 125-140 inch wheel base car again. give it a good ride and a big 6.2 litter small block V8. Make RWD with AWD optional. Make it for 50 grand with no options all inclusive like the old days! Chrome metal bumpers. Active grill shutters cylinder deactivation. Magnetic shocks tuned for a good ride.

Give it Suicide doors call it the Continental make it a convertible for 55 grand.

Kill CUE...NO NAV SYSTEM unless it is hidden and flips out like Rolls Royce.
No ONSTAR
No stupid shit

Caddy should be an American car all chromed out real metal with a big V8 priced to sell.



TomMTomM - 6/24/2014 1:04:13 AM
+2 Boost
The biggest problem at Cadillac

The ATS and the CTS are essentially the same car - they both have no rear seat room - and small trunks. The difference between the 2 cars - 2 inches in the rear - is minimal and both are not enough for American tastes (about 33 and 35 inches) When the CTS competed in the Compact Foreign segment - it had more room than all the others - now the ATS has the least.

Actually - that problems even extends to the Buick Regal and the Chevrolet Malibu - both are criticized for their small rear accomodations too. That may work in Europe - but it will not here in America - and Definitely not in China where these cars are likely to be driven by the help.

Cadillac needs a true Large car - and needs to add 3 inches to the Leg Room in the next ATS and CTS - plus at least 50% more trunk space.

And - Arts and Science has run its course - it is time for something smoother and more elegant.

However - the dynamics of the cars is really competitive with the foreign cars - the cachet of the foreign brand will take a lot more time




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