Say what you will about Cadillac’s most recent decisions revolving a flagship sedan and marketing moves, but the brand is making General Motors money.
WardsAuto reports Cadillac transaction prices have continued to rise throughout 2016, specifically on the 2016 Cadillac ATS, the brand’s entry level vehicle. Cadillac President Johan de Nysschen convinced GM brass to unbundle options and packages, which were steering potential buyers away. For example, customers would have to choose a $10,000 equipment group in order to receive a sunroof.
Bundling makes the build process easier, and less costly at the factory, but when luxury is the name of the game, de Nysschen knows a thing or two. With bundles undone, transaction prices have rose an additional $1,500 in past four months on the ATS sedan. In 2015, they were up $2,000 as a whole.
“2015 from a revenue basis was a killer year,” de Nysschen stated.
From a further financial standpoint, if Cadillac’s average transaction price is $53,000 per vehicle with 278,000 vehicles sold last year, that equates roughly to $15 billion in revenue for GM. Not too shabby at all.
If de Nysschen has his way, he thinks the brand will be on target to sell 500,000 vehicles in the U.S. in five years. Should that happen, Cadillac’s roll of the dice will have been worth it.