Cadillac's President Feels Performance Cars Are Critical For It To Be Successful - Do You Agree?

Cadillac's President Feels Performance Cars Are Critical For It To Be Successful - Do You Agree?

Why does General Motors Cadillac need a high-performance sub-brand?

It's an interesting question. For years, Cadillacs were thought of as "a couch on wheels," as the brand's marketing chief, Uwe Ellinghaus, put it in a conversation with us in Detroit last week.

But times have changed. German luxury giants BMW, Mercedes-Benz, and Audi have all shown that high-performance luxury cars can sell -- and sell quite well.

But the business cases for cars like BMW's M5 -- or Cadillac's CTS-V -- go beyond profitable sales. These are brand-builders, models that have a "halo effect" on the other cars in the automaker's lineup.
 


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valhallakeyvalhallakey - 1/27/2015 3:47:47 PM
+3 Boost
I agree they do need performance cars. However I do not think they need to match the German path exactly. There is a uniquely American path that could be taken in which you have a car that is very stylish, even a bit over the top (that is America) quite capable of eating miles quickly, quietly and comfortably, handles very good and could be a track star if modified. If Cadillac needs cars like an M5 or RS6 maybe the best idea is to team up with some third party like AMG was to Mercedes or as Alpina is to BMW for the more extreme track capable models. On the other hand… CTS-V - I want one, may get one...


TheSteveTheSteve - 1/27/2015 4:32:47 PM
0 Boost
I don't think so. Toyota is nicely profitable and it sells people movers, albeit good ones. Hyundai? Economical people movers. There are more examples of car companies that do what they do well, without needing a performance segment just to prove they can.

I don't think Caddy's problem is lack of a performance segment. I think it's Caddy :-(


runninglogan1runninglogan1 - 1/27/2015 5:48:11 PM
+2 Boost
If you've driven one lately or read any of the reviews, you know that Cadillac has a strong product line up. The CTS has beaten the 5 series and E class in every comparison test. The problem is image and people not giving the brand a shot. Hopefully that will change.


TheSteveTheSteve - 1/27/2015 11:10:05 PM
0 Boost
runninglogan1: If a consumer is interested in "numbers", and the Caddy's can match or best those of BMW or Mercedes, then yes, getting the word out will surely help Caddy a lot!

On the other hand, if a consumer has a preference for a certain flavor of handling, body style, or interior design, and Caddy isn't it, then evangelizing the numbers won't help. To my (entirely subjective) way of thinking, Cadillac doesn't say "premium vehicle" or "desirable" or "attractive," and that's a problem for Caddy, as they're trying to attract buyers who prefer something that Cadillac isn't.

As the world stands today, Cadillac has locked up the market on car buyers who like a Cadillac-type car. There are just too few people in that cohort.


runninglogan1runninglogan1 - 1/28/2015 6:34:06 AM
+1 Boost
I respectfully disagree. If anything, recent Cadillacs have proven superior not in "numbers" but in driving dynamics and driving pleasure. The new CTS has more than once been called the 5 series that BMW should be building. Having driven both the CTS and current 5, I can attest that the Caddy feels more dynamic and equally refined. As far as style and interior design, that truly is subjective and either you like it or you don't. I respect that you don't.


JDMUSMuscleJDMUSMuscle - 1/27/2015 4:57:17 PM
-1 Boost
The German cars sell NOT because they are high performance cars.

But it's because they are so advanced and also, they are GERMAN. That's the big thing.

You can't talk about American and luxury in the same sentence.


MDarringerMDarringer - 1/27/2015 7:20:15 PM
+1 Boost
Actually you can. Americans have always done attainable luxury the best.


JDMUSMuscleJDMUSMuscle - 1/28/2015 2:20:46 AM
-2 Boost
Attainable luxury. Well, for that, I agree.


runninglogan1runninglogan1 - 1/27/2015 5:52:40 PM
+3 Boost
Cadillac has proven they can build world class performance sedans with the V Series. The new ATS-V and CTS-V look good to top their predecessors and the competition. I for one would not discourage Cadillac from continuing on the path of high performance.


MDarringerMDarringer - 1/27/2015 7:19:14 PM
+3 Boost
Yes, but they need a strong flavoring of American muscle car goodness rather than trying to copy AMG. The last CTSV had a sound the the E AMG just could not touch. The Mercedes sounds like an incredibly precise sewing machine whereas the Cadillac growled with Corvette goodness.


runninglogan1runninglogan1 - 1/27/2015 7:52:56 PM
+4 Boost
The new 6.2 liter pushrod V8 should preserve the American flavor.


Benzes1Benzes1 - 1/28/2015 12:46:44 PM
-2 Boost
You're deaf.


cidflekkencidflekken - 1/28/2015 12:01:00 AM
+2 Boost
Yes, performance cars is a good thing, but having a stellar flagship is more important. A stellar high-performance halo car wouldn't hurt either, but something like that would always be compared to a cheaper Corvette.

But first thing's first. Cadillac needs to figure out why the current lineup doesn't seem to resonate with the buying public. I have my own opinions on it, but Cadillac needs to fix what needs to be fixed. Unfortunately, much like Infiniti, Cadillac seems to be focused in the wrong direction.


TomMTomM - 1/28/2015 8:22:31 AM
+1 Boost
Not At All

Cadillac has been synonymous with American Luxury cars. They could be even more successful if they did not Abandon that market - as people age - they prefer larger - smoother riding - luxurious cars. And they want styling that impresses. (Think Eldorado)

Instead of abandoning that market - they should be producing more cars for that market. Even with a better chassis, they do not have the cachet of a BMW even if they did produce a far better car. I will take decades to have the market change from the Germans to Cadillac. Why abandon a market they had all to themselves?

THe fact is - they could produce for BOTH markets.


Benzes1Benzes1 - 1/28/2015 12:45:57 PM
-2 Boost
YES. I agree. They have to have this, it makes the brand grown. Now they needs a bigger coupe, and a convertible of some sort and some crossovers. Cadillac has about 12B on the table new products. That should finally put Cadillac at the table with Mercedes, BMW and Audi.


xjug1987axjug1987a - 1/28/2015 2:47:04 PM
+1 Boost
Great comments here. The new ATS and CTS are fantastic products and express "American" very nicely. I agree, they should not be AMG or M clones, they need to be uniquely American. Consistently building superb "American" luxury vehicles will, in time, be competitive globally. China is a big market as are other regions. Europeans will always buy European, they're snobs. But there is no question the ATS & CTS are world class. I've had Mercedes for years, and an A6 which I loved. The CTS is on a very short list for my next car. The E is so frumpy, though I expect the new one next year to be crisper but much more expensive. The current A6 doesn't do it for me and the 5 Series is a bore too. I just spoke w/a buddy at GM and he tells me the CT-6 will make a huge impact, its that good. Once this car hits, and the other products get their refreshes, and the other new SUV/Crossovers, etc.. hit, the line up will broaden its appeal. The weak link is the dealers, but I'm told they're working on that too.


Benzes1Benzes1 - 1/29/2015 6:08:40 PM
+1 Boost
A buddy at GM told you the CT6 will make a big impact and that is supposed to mean what? More empty GM rhetoric.


TomMTomM - 1/28/2015 3:04:24 PM
+1 Boost
No - the weak link is NOT the dealers - it is the size of the cars.
The ATS and CTS - while very good - have really cramped rear seat space - and almost no trunk space (And that is without a spare tire too)

I know many people who - when looking at the CTS - moved on because it is hardly an bigger in the back seat than the ATS - but is $20,000 more. The solution - the LONG version of the ATS is sold in China and should be sold here - along with a long version of the CTS as well - and PROBABLY a long version of the CT6 too.

THe other big problem is the styling - the arts and science styling has run its course - and the new prototypes show a much more elegant road that cadillac should follow. They can leave the arts and science to the ATS/CTS - and have the others go CHIC. That would work too.


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