Why Does Lexus Succeed And Cadillac Struggle To Overcome "Cheap" Alternative To The Germans?

Because Lexus hit the Germans with quality before all else, Cadillac hasn't. They're too busy worrying about posting better skidpad and slalom numbers and real world buyers are not buying based on these things. Lexus has quality if they have nothing else and quality sells.

You have a point, they met the Germans with reliability and nothing else at the time.

However that was also at a time that German reliability literally sucked. You have to remember at the time of the Lexus launch it was basically re-skinned Toyotas all gussied up. Not like today.

In many ways they are very close to the Germans, but they still suffer from being too close to mother Toyota at times. I am also not entirely convinced they are as confident as the Germans in where they fit in the overall scheme of things.

Not exactly true, Mercedes was #1 in JDP in 1990 and 1991 when it came to reliability. The 300E to be specific. I said quality not just reliability, which is just one part of quality. The LS400 and later SC400 were Toyotas in name in Japan, but they were true luxury cars regardless of the badge.

One of the few times I'll agree with Benzes1 and knowitnothing1985. The Lexus LS400 came out with a car that was the same size, similar looks, more features, strong quality and reliability for a lower price. It may have been a jonnie come lately, but it had a value proposition. It was a hit and a game changer. Cadillac has decades of substandard, non-competitive products that have tarnished its reputation which it must somehow overcome. Not to mention the GM bankruptcy, the recall debacle as well as dealers who think they know what "Customer Service" means, but are lost. Mercedes & BMW have decades of engineering excellence and driving enthusiasm (R) as their tail wind. While I have an ATS 3.6 and think the car is terrific, the dealer experience has been poor, I'll never go back to one in particular. They absolutely MUST improve their dealer experience or any sales of excellent, competitive products, will be a one & done prospect. As it is, Cadillac must continue, I’d say for decades to come, to build superb products that provide a reason to switch. Absolute “gorgeousness” is one way! Same pricing as an MB or BMW because you want to send a message, I think is not the way to do it. That said, Lexus had a good start but their cars are uninspiring, boring, “reliable” appliances. The current new crop are simply hideous and not in the same league either.

And xjug, current Cadillac models are all nothing but junk that fail even to be an "appliance".

And BMW is becoming more and more like a German appliance maker.

So go cry now.

This, and the fact that not everyone wants or covets a German or European car. Lexus is a Japanese interpretation of luxury and that's very different form Germany. A lot of people (in America) simply don't like the stoic, stern personality of German cars.

Quality, Value, Service.....

When I see a Cadillac, the sheet metal doesn't convey a sense of "premium car" or "luxury" to me. If it can't do that, in the very least, then it'll have a hard time getting me to look past that, and to discover what else it might have to offer. So I don't view Cadillac as a "cheap alternative to German [cars]". I see it as a step above an ordinary car, like a Chevy cobalt, but well short of premium vehicles like BMW and Mercedes.

If Cadillac wants to rebuild their brand and compete with German brands, then they have to not just be on par with (or exceed) German specs, they have to *look* the part, outside and in. Would anyone pay BMW prices for a car that handled and powered like an M3, but looked like a Chevy Cobalt. Very few, I'd think.

It all comes down to brand perception. Cadillac quality and performance is on par with the Germans. However, there's baggage that comes with the Cadillac brand that's much harder to overcome. Some reject Cadillac because of its attachment to GM and UAW politics. Others reject the brand due to its affinity among the Escalade-driving, douchebro set. Cadillac is a bit of a tweener. Doesn't have the perceived quality/reliability of Lexus, the prestige of MB, the performance of BMW, or the style of Audi. It's tough to compete when you're not #1 in any category and always a compromise. All that said, Cadillac is on the right track and perhaps just a few world-class models away from truly competing.

It's just all about the brand.

The world sees American cars as garbage/junk, and European cars as the standard of everything. Did you guys hear about Man U players refusing to drive Corvettes that were given to them for free? Ya, that says a lot already.

And Lexus has quality and reliability, and it is still somewhat doing good against the Germans because it is at least Japanese.

But once people know that something is an American, they do not buy. Because they know it's garbage.

Toyota's Lexus buyers are getting older, hence the stupid looking spindle grille and NX. Trying to reach a younger Toyota market. Cadillac average age buyers are in their mid 60's? Is it to little to late for Caddy? I hope not. Caddy should focus more on luxury/quality and less on performance.

Lexus is succeeding in what? Being a Japanese Buick with scary movie styling?

De Nysschen will kill Cadillac in 5 years with his idiocy.

Why? Because Cadillac is actually a re badged Chevrolet with more fake plastic chrome glue on to it. GM is 'Cheap to the bone.'

Except for the fact that the CTS and ATS are on a platform that Chevrolet does not use.

Cadillac has the problem of getting into a matured market. The CTS and ATS are great cars, but it is difficult to break into a market where people already have preferences. Cadillac needs to make it clear that it is in this market for the long haul, and it needs to continue producing vehicles like the CTS and ATS. It will be slow but it will gain market share eventually.

Anyone remember when GM would take a Chevy Tahoe or Suburban and put ALL that CLADDING on the side, then call it an "Escalade"; or how about those Pontiac Grand AMs with all that cladding.

I would take high QUALITY and RELIABLE Lexus over any GM, Chrysler, Ford junk. Remember the UAW work for those jokers. Maybe the BIG 3 should have a few more Pot vending machines for their employees to go along with the beer. Check this video out:

http://www.youtube.com/watch?v=hzyRjX_pX5c

gkearns56---- speaking of UAW, Japan has several unions, Confederation of Japan Automobile Workers Union is one,,

The Japanese culture is so much different than ours. They respect and value seniors. They also appreciate their jobs, no matter what they do. Even at the top or bottom of an escalator they have a "bell type" person wearing white gloves greeting you. The unions in japan, are NOTHING like the unions in America. Our UAW workers are GREEDY a@@. I know because my idiot brother worked for Ford Motor Company 32 plus years. He would say, "as long as I get my iron out". That's why I NEVER bought a Ford car under his employee plan.

Lexus wins with consumers because their consumers feel it is based on a better product, namely Toyota's brand image, in terms of: quality of workmanship, reliability, design and resale.

Cadillac's problem is that when a lot of consumers think of the brand, they don't think of a CTS-V or the new ATS, they think of their grandmother's 23 foot Fleetwood.

Because Audi does not build their cars out of cheap Chevrolets and just stick a Cadillac name plate on.
The buying public is wise to the scam Caddy is trying to pull. That's why Caddy sales are suffering, big time.

GM = GREAT MISTAKE

The two Vehicles that sell in the Lexus camp are the RS suv and the ES (Avalon front wheel drive based) 350. The ES is the new "Buick" - but certainly not a "special" car of any kind.

What sells for Cadillac is the SRX and Escalade SUV's. The fact that SUVs have overtaken sedans as the best selling vehicles points out the major problem for Cadillac - Americans (And the Chinese) buy Cadillacs - and Americans want a LARGER vehicle with more room than either the ATS/CTS twins offer - and the XTS - which really should be competing with the ES350 is way overpriced.

De Nysschen is attacking a market that is not there - people do not want a Tiny American car that competes with a German sports sedan - they want a traditional American Luxury car - with the Most room in their class. Mercedes has already shown that by going in the luxury direction with its new cars - and leaving the "Sport" to a sub Brand - which sells in far fewer numbers.