Sales of Cadillac vehicles slid 3 percent to 13,515 units during June 2015 in the U.S. Though the continued sales slide is disappointing, especially in light of the brand producing vehicles that are as good as or better than those of the competition, there is rhyme and reason behind the sales drop.
Cadillac says that the decline is due to a “planned 56 percent reduction in sales to fleets”, and that retail sales increased 3 percent in the U.S. in June.
The GM Authority Take
Retail sales are usually significantly more profitable than sales to fleets, and Cadillac’s reduction in fleet sales is most likely the main reason that its average transaction prices (ATP) shot up 15 percent in June. Even so, we would still like to see Cadillac grow the top line of its business by selling more vehicles. After all, Cadillac’s direct rivals outsell sell it by (roughly) a factor of three.