Compared to Audi, BMW, Lexus and especially Mercedes-Benz, Cadillac’s product portfolio can be described as slim at best. Because of this, the brand’s sales figures are constantly eclipsed by its most direct competitors due to the lack of overall variety. Yet, at least gauging from the words of GM CFO Dan Ammann, the scenario is not really viewed as problematic.
“In some ways, I think that not having the pressure to sell the last incremental car at whatever cost … is actually not a bad place to be right now,” Ammann said in an Automotive News report. “We’re not going to be in every single segment that they’re in.”
True, Cadillac is looking (and needs) to gain its footing in more established segments such as the midsize luxury sedan market with the all-new 2014 CTS before it moves to more niche segments, like a four-door coupe or B-segment urban luxury vehicle. Ammann also warns of the dangers of pursuing certain segments that could lead to brand dilution.
“Continuing to move down price points, and microsegmentation of all of these little categories, all seems to be driven by a sort of volume-at-all-costs mentality,” Ammann said. “What that does long term for brand health I think remains to be seen.”
Comments
Obviously Cadillac doesn’t want to dilute the brand with a bunch of hogs (looking at you 5 Series GT), but at the same time that BMW is pumping out stupid cars to fill every gap and their marionette customers are following along like good puppets, it shows that BMW/ Merc are far more established luxury car makers and GM-Cadillac still have a lot of work ahead.
Cadillac and GM both made it clear that the future of Cadillac was not in volume but higher priced higher value cars. It was hard to see then but as their new product is coming on line we can see how they are making the move.
Companies like BMW nearly has to offer a little of everything as they are not a large company and have few other divisions to fall back on.
As Cadillac move up to a more exclusive higher value car Buick will have more room to function and take more charge in challenging Audi and low end BMW as time goes on. Here again it is hard to see now but with new coming product this will all play out.
With Cadillac the will sell at lower volumes but they will still make as much or more money.
Porsche did the volume thing in the 80’s by offering the 924-944 and other cheaper models to sell a lot of cars. They found it cheapened their value and image and in time went back to higher level cars. They dumped the 924 and like and went back to higher quality 911 models and the higher priced Boxster but no more bargain basement models. They now sell less cars but make more money with the higher exchange price.
I almost bought Buick….it is near luxury and very fine in many ways…got ATS this time instead…lovely car and sure gets the looks!!
Danny, I’m glad you chose the ATS. I’ve driven all three, loving the quirkiness of the 2.0T and the aggressiveness of the 3.6. Very much looking forward to the 3.6TT with the integrated exhaust manifold, so there’s less lag when the turbo is fed! YeeeeHaaaaaa!
The Regal GS is a pretty damn fantastic car, but ya, the ATS 2.0 is a clear step above
I have said before in other threads. They are doing amazing things. But somehow need to connect with the younger crowd. I have yet to see anyone under 55 in an ATS in Toronto. I am the youngest I have seen by far! BTW, I have only seen 4 others. Here it is a sea of 3 series, C series and A4’s etc.
Having my hot 30 year old wife drive around is something Cadillac desperately needs here. They should pay her gas!? I seriously though, think we got our order faster etc because someone pulled some strings. We had two quotes. One dealer said we could not get an all wheel drive in White etc As the allotment was probably full. I thought that was BS. I went to the other dealer, who went to the DSM and they got it done pronto. I seriously wonder if they said get these younger folks in the car now!
We LOVE our ATS. LOVE love love it. We also looked hard at the REGAL GS. It is an awesome car. But that demo is even older it seems. Nothing against older folks btw. But the many of the well healed here still thinkCadillac and Buick are old mans cars. My best friend made jokes I was in the mob. Others asked me does it turn? etc etc etc. I love turning heads with the ATS