Ex-Infiniti boss Johan de Nysschen has helmed Cadillac for just over a year now and he’s remained firm in his resolve to position the brand as a luxury leader, one capable of matching and exceeding the very best Germany has to offer.
To get there, Cadillac must be seen as a brand of equal merit, which means it can’t depend on discounts and reduced pricing to for the sake of sales volume. Rather, the price of a new vehicle must remain firm in a bid to attract well-heeled buyers willing to pony up extra coin for a premium ride. A concept traditional Cadillac buyers are having a hard time accepting, and an idea that German luxury brand customers are apparently dismissing, as Bloomberg’s David Welch explains in a recent report.
“The problem is that CTS – which is actually a really good car – was gettable at $350-400 a few years ago and people are coming back when their lease is over hoping to get that kind of rate,” he tells Bloomberg’s Betty Liu. “And now the car is $500-600 a month and dealers are trying to get them into the ATS, which is a lot smaller.”
Consequently, the price fluctuation has left consumers in a bind: either pony up more cash for the same vehicle they had or pay the same amount for a smaller vehicle. As a result, some customers simply look elsewhere. But this isn’t a short-sighted strategy.
GM brass remain convinced of de Nysschen’s plan to play the longview game and build more profit into each vehicle. Meanwhile, “dealers just don’t want to wait (for consumers to come around),” says Welch.
Check out the full 3:30 news brief from Bloomberg TV below.