GM's Barra faces roadblocks in rebuilding Cadillac brand

Article: "...the carmaker can't persuade enough American sedan buyers to switch from foreign competitors such as BMW or Mercedes..."

Is this really a surprise? When someone is seriously shopping for a BMW or a Mercedes, I don't believe many of them have a checklist in their pocket of features they want, and they're thinking "Lemme see what Cadillac has to offer." As much as some people like to highlight Caddy's similar or better "numbers" and how some reviewers have favorably compared the ride to the German marques, most buyers see the comparison as "apples and oranges". And it goes beyond "just the badge on the hood."

yes, and those buyers may never switch. Its the buyers, like when Lexus first appeared, they wanted the greater value. Lexus offered everything the Germans offered, and more, at lower price. It was a hit. Caddy is rebuilding its reputation and it has to give folks a reason to switch. Highlighting things like Std Leather which is optional on all but the upper levels of Mercedes C/E class cars. Caddy's engines provide more bhp than either BMW/Audi or MB, so more power... Also, Caddy has got to be consistent for the next 20 yrs, its not going to happen over night. The dealers have GOT to be premium class people and the experience has to surpass MB. My experience with Caddy dealers is sub-standard for a luxury brand. Also MB's Roadside Assitance program is superb, it gives me comfort my wife gets a MB person if her car breaks down whereas with Caddy they dispatch "pick up truck Joe" to help, or I beleive that is the current program. Little things add up to alot, but the cars are the best ever American made iron. I personally love the new ATS and CTS and the way they look is more distinctive than the others.

xjug1987a: I'm sure the scenario you paint of someone who's hot 'n heavy into BMW or MB switching to Cadillac does sometimes happen! But it happens so rarely that GM is still desperately trying to lure those folks.

Key points from the article:

"...while an American Cadillac owner will happily consider a BMW or a Mercedes, drivers of those famous German cars just won't put a Cadillac on their shopping list."

Larry Dominique, president of ALG in Santa Monica, CA: "...The ATS is...overpriced and overproduced..."

GM dealers offering 2014 ATS sedans at up to $12,000 off sticker price. Another cutting $17,500 off the price of a 2014 CTS sedan, which starts at about $45,345. Wow, that's desperation over a product that's hard to move.


A big problem Cadillac has is that too few people desire Caddy's products (Escalade SUV excepted). Whether those "too few" people are those who can't be lured from BMW and MB's showrooms, or those who prefer buying American, or those who really like what Cadillac offers, the fact remains: Caddy's offerings appeal to an insufficient number of people to make it a success. In other words, it's not what most people want.

So what's next for Caddy? I suspect they'll keep refining what most people don't want, and keep trying to improve it (sort of like improving the much despised Windows 8 to become Windows 8.1). I believe they'd be better off redefining the brand and its offerings. That won't happen, though, because there's just too much momentum carrying this lumbering battleship in its present direction. Expect more origami sheet metal and steep discounts.

Yes Cadillac faces an uphill climb but I'm glad to see they're not going to just roll over and die. If they keep building great cars and provide top notch service with a great dealer experience, I have no doubt the buyers will come - eventually.

Long story short: pour money into Buick as a plan B.

Cadillac. Great cars today. But they they built sh*t for over 2 decades. That takes time to overcome. They need to take Lexus' example from back in the day. Price them low to steal sales and build loyalty and then gradually raise prices to get closer to mb BMW, Lexus etc. Its taken Lexus almost 25 years to get close to get close in pricing. Lexus also came out blazing with great dealers and service and has never looked back. The majority of Cadillac dealers still suck. A few years ago I went to a Cadillac dealer to look at a CTS. I might as well have gone to a Chevy dealer. Fat unprofessional salespeople, open cubes for offices, no luxury feel to showroom, groups of salespeople just standing around acting like idiots. And then they have a "mandatory 1999 package" which costs $1999 and consists of frivolous items like cheesy pinstripes paint protection etc. To top it all off never even received a follow up call.

Time to stop trying to be Mercedes or BMW and get back to building American Luxury Cars.
A full sized car that fit 3 NFL linemen in the back seat comfortably.
SUVs will lead to a total disaster when oil goes up in price again.
American Made American Luxury cars

Buyers are resistant to paying the rediculous Cadillac prices while getting nothing but a dolled up Chevy.