Well Duh? Cadillac Questions If Slow Sales Are Due To High Prices And Lack Of Standard Features

Well Duh? Cadillac Questions If  Slow Sales Are Due To High Prices And Lack Of Standard Features

With Cadillac reporting an 18% decrease in its August sales and its redesigned CTS sedan going down 35% in monthly sales after a downfall of 29% in July, the automaker might have been “too ambitious” in raising its prices, according to chief marketing officer, Uwe Ellinghaus.

To remedy that, the division is taking into account the need to add additional features, such as heated seats to lower-level versions of the car to lure buyers next year and also make major changes to the brand’s marketing in the first quarter of 2015.
 


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USNA1999USNA1999 - 9/5/2014 11:22:56 AM
+4 Boost
I love the new CTS V Sport Premium but $70k? That is way too high, maybe $55K.


vdivvdiv - 9/5/2014 11:41:41 AM
0 Boost
I suppose Buick is supposed to have the mid-priced GM models for the populace and it is really idiotic that they are not pushing the brand as performance-oriented.


TomMTomM - 9/5/2014 12:00:23 PM
+2 Boost
Some of the problem may be prices and content - BUT - I still believe that the problem is ROOM and Size.

When the CTS was the largest of the entry level cars - it sold reasonably well - but now the ATS is the entry level car - and it is horribly cramped for more than two people - and another two who do not have legs. And even without a spare tire - the trunk simply is non-existent.

The new CTS is not any bigger than it was inside - but now is given the price and position against mid-level cars MUCH bigger inside than it. In fact - the new Toyota Corolla has a lot more room inside than the CTS. And the CTS trunk is also sans spare - and really tiny.

Cadillac does not need a smaller car to "compete" with the new CLA class - the ATS is already smaller than them - so de-content the ATS and sell it in that price range - then

1 - Bring the price of the new CTS back down to compete with the C-Class cars - AND
2 - Either produce a new Larger car to compete with the E-class level - or at least produce a LONG version of the CTS with more space inside.

3 - And I hope the new LTS level car will not be so expensive that it will be priced out of the market for most people looking for a larger car than the XTS. If so - they would take the LIMO market to themselves too.

GM has been stingy with interior space and trunk space - and it has cost them - now just with Cadillac - but also with the Malibu - and even the Regal. Americans expect their MID-size cars to be big inside with good trunk capacity - AND at least a tempa-spare. This is one instance where GM should revert back to its old ways - of having the most interior space in each class - for American size people.

And lastly - Cadillac needs to move on from their current styling to something more Classically premium - with smoother lines. Arts and Science needs to lose the science and move more to the art side - as the Ciel shows can be done.


dumpstydumpsty - 9/8/2014 10:09:16 AM
+1 Boost
I understand all of your points.

I think Cadillac - in competing with Audi & BMW & M-B on a global scale - has sized their latest cars for the smaller European standards...so naturally Americans will feel like their being short-changed on interior/trunk space.


Agent009Agent009 - 9/5/2014 12:06:15 PM
+4 Boost
Caddy has been jacking up prices without increasing content over the last few years. The typical buyer is much smarter than that these days.



nguyenvuminhnguyenvuminh - 9/5/2014 12:10:04 PM
+3 Boost
I think Cadillac should stop thinking they're a "competitor" to MB and BMW. They can "compete" against MB and BMW, and Audi and Lexus, but they should not think they're at the same level as MB and BMW. This reality will help them consider their pricing/feature strategy a bit more realistically and competitively. I know many will get upset with my comment but the reality needs to be based on a global perception and no where else out side of the USA does any region ever consider Cadillac to be in the same league as MB and BMW.


USNA1999USNA1999 - 9/5/2014 12:15:01 PM
+1 Boost
You are absolutely correct!


xjug1987axjug1987a - 9/5/2014 4:18:22 PM
-4 Boost
Wrong, Cadillac has been building cars for what 100yrs and they used to be the finest most coveted cars on the planet. It has history, pedigree and an innovative, prestigious past. The UAW did their best and nearly killed GM. GM could not build competitive cars so they nearly went bankrupt... they're now building the best cars in their history and are competitive, but they need to be consistent. The premium market is brand conscious and they've got to improve their brand image. I never agree with that lamebrain JDSMiniscule but she is partially right with her rantings on badge whores. Thing is those badges (MB/BMW) have worked hard to solidify the images of their products. Mercedes engineering, BMW, Ultimate Driving Machine... people believe it... Cadillac, The Standard of the World... gets a laugh now, but it used to be true. Stay the course and keep building a better car for solid value...


Benzes1Benzes1 - 9/5/2014 4:30:15 PM
+6 Boost
He is exactly right. NO one cares about Cadillac and even less so outside of the U.S. and they've been suffering from this delusion for a while now, thinking they're on the same level as MB/BMW or even Audi or Lexus at this point. The proof is in sales. People buy high end Mercedes, BMW, Lexus and Audis in good numbers in that order. They won't at the Cadillac store. 70K is too much for anything at Cadillac right now. Mercedes gets on average 95-98K for a S550 every day all day. Cadillac isn't anywhere near that.


dumpstydumpsty - 9/8/2014 10:28:31 AM
+1 Boost
I like the comment, but I disagree as well.

I do like most of the Cadillac lineup including the Escalade, but I just can't see paying $80k-$90k for the latest full-size BoF SUV. It's completely mind-blowing for many consumers to find out transaction prices for these Cadillacs today.

With that, Cadillac has a lot to learn about how the "division" is really perceived on the street. Cadillac is very competitive, but it's hard for the luxury arm to be completely effective b/c it has other "lower tier" sister brands that also sell overlapping products. If Cadillac was a "stand alone" brand, they could probably match up to BMW & M-B product-to-product.


TheSteveTheSteve - 9/5/2014 12:19:27 PM
0 Boost
Keep in mind that "high price" might be a subjective thing. If you're looking purely for volume sales, then yes, you're likely to sell a lot more $25,000 cars than you are $80,000 cars in North America, just because there are much more people who can afford the more economical car.

But when you're talking premium vehicles, saving some dollars and getting more bullets on a feature sheet AREN'T the factors that sway a consumer! I don't envision that there are many car buyers who are serious about the Mercedes Benz E-Class or the BMW 7-Series who suddenly conclude, "Hey, if I got a Cadillac, I could save some money and get more features." Nope. It's a different kind of buyer who's looking at Cadillac in the first place, and many of those who are interested in Cadillac aren't used to such a high price tag.


W124E320W124E320 - 9/5/2014 3:40:23 PM
+2 Boost
Disagree with you TheSteve...better car for a better value....isn't that what put Lexus on the map? I've heard 80% of Mercedes SUV/Sedan's are leased that tells you there are price shoppers out there in the "premium vehicle" segment. 80% of their coupes/convertible/etc... are purchased that tells you those folks perhaps can afford toys? I've had 6 Mercedes cars/suv's and just got an ATS 3.6, it's better than the C/A4 and a better value than the 3 Series (most of which are well over $50K). In the end EVERYONE looks at price and prestige and if you can get a Benz for a little more than something else, why not? Look at the CLA and the folks that are elevating to the brand and that car is really awful... but its a Mercedes and that says a ton! Caddy needs to keep building a competitive or better car, at a better value, folks will come. It will take time but it will come. Mercedes engines require premium fuel vs Regular for Caddy lowers the cost of ownership. Leather is std on Caddy and optional on nearly all competitive Mercedes cars & SUV's. BMW provides free scheduled maintenance as does Audi and Cadillac, its all extra on Mercedes.... One thing this says is folks will pay more for less content if the brand is more prestigious.


Benzes1Benzes1 - 9/5/2014 4:30:55 PM
0 Boost
Bingo!!!


Benzes1Benzes1 - 9/5/2014 4:33:45 PM
0 Boost
W124E320 True better car for less would work, but they don't have that.


JDMUSMuscleJDMUSMuscle - 9/5/2014 4:47:10 PM
+1 Boost
This is why I usually never buy new GM products. Caddy doesn't really deserve to earn more than $20k~30k from me, and yes, that includes the Escalade.


MattDarringerMattDarringer - 9/5/2014 7:48:19 PM
+2 Boost
To fix Cadillac:

Offer Mercedes/BMW levels of equipment for 15-20% less
Lengthen the wheelbase of the ATS and CTS
Get an XLR out at the price of a Stingray
Get a ZLR roadster/coupe out off of the ATS platform and price it in Mustang GT/370Z territory
Reposition the ELR to a $40K price point
Do an FTS AWD small FWD/AWD sedan aimed at the WRX/GTI/A3




skytopskytop - 9/5/2014 10:51:25 PM
+1 Boost
America realizes that Cadillac is nothing more than a common Chevy re-badged with a Caddy logo. Rip OFF!!!


cidflekkencidflekken - 9/6/2014 7:58:19 AM
+3 Boost
At the end of the day, people just don't see Cadillac at the same level as the Big Three: Mercedes, BMW, and Lexus. Some don't even see them at the same level as Infiniti, Audi, or Acura.

I also agree that pricing is a major issue, but their current styling theme isn't helping. Both the ATS and CTS are essentially anonymous on the real road. If not for their LED running lamps, nothing about them would stand out. And the CTS has the 3 B's: Big, Boxy, Boring. I see the CTS side by side with a 5 Series, E, or A6, and it doesn't even look like it belongs in the same class. It looks like it should be trying to steal sales away from the Chrysler 300, but it's not priced at that level. Same with the ATS when side by side with the 3 Series, IS, or Q50 (and I'm sure when the new C is released and the A4 is updated), it truly looks like it should be competing in the same segment with the Accord, Fusion, et al.


MattDarringerMattDarringer - 9/6/2014 11:58:17 AM
+1 Boost
Obviously you have not seen the new CTS in traffic.


arrowmgarrowmg - 9/7/2014 12:22:05 AM
+3 Boost
yeah you are right, every time I see an ATS or a CTS I say "oh that's nice...For a Caddy",which os basically the same way I feel about Acura LOL. They just look out of place when they're actually next to the Germans and Infiniti/Lexus.


W124E320W124E320 - 9/9/2014 10:28:58 AM
0 Boost
You have no idea what you're talking about! Your comments are strictly your opinion only. Every major car magazine has rated these products as exceptional. So if you don't like it well that's your opinion and your opinion is wrong. I'll bet you've never even driven one? You just simply want to bust on them and be controversial. Thing is you're just plain wrong.


iamdabest1iamdabest1 - 9/6/2014 9:14:41 PM
+1 Boost
i think caddy's look great, really like the new cts, ats - not so much definitely not as good as a 3 series, or new c class. gotta agree with darringer, price matters, and what ever they are competing against with germans has to be 20% less than germas.
a cts-v sport or an m3 for the same 70k ??? THINK people !


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