If you haven’t heard, GM’s Cadillac prestige luxury brand is in the midst of a top-to-bottom overhaul that includes rebuilding the brand, expanding the product line, and transitioning the customer base into one willing to pay top dollar for what are starting to be recognized as some of the world’s best luxury vehicles. Those efforts are all well underway under the watchful leadership of Johan de Nysschen, and early indicators are showing that the strategy is working.
In November, Cadillac had the highest Average Transaction Prices (ATPs) among full-line automotive luxury brands, according to J.D. Power PIN Estimates. That amount was at roughly $55,000. ATP suggests lower discounts/incentives and higher prices compared to competitors, both of which serve an indicator of the value consumers place on a vehicle and often suggest greater price tolerance and vehicle desirability.
What could be considered even more impressive is the fact that Cadillac managed to increase Average Transaction Prices while also posting a 17 percent increase in global sales volume to 23,214 units, meaning that the grow it’s experiencing is entirely on the top side of the business (as a result of increases in sales volume and sales prices).
The GM Authority Take
All we can say is nice work, Team Cadillac. The transformation of sales volume, brand image, and product excellence won’t happen over night, but it will happen eventually, at which point the effort will be very much worth it to the bottom line of parent company GM.