Earning the title of the fastest-growing major automotive brand in the United States, Cadillac is coming off its highest May sales results since 2007 —Â selling 13,808 cars in May 2013, a 39.88 percent year-over-year increase. With all that growth, how do Caddy’s increasing sales numbers compare to those of the competition? In one word, adequately.
In May, Cadillac held the sixth spot in market share out of 12 luxury brands, coming in behind Mercedes-Benz, BMW, Lexus, GM’s own Buick, and Acura, but ahead of Audi, Infiniti, Lincoln, Volvo, Land Rover, and Jaguar. In other words, Caddy was right in the middle of the pack:
Luxury segment - 2013 - USA - May
| Brand | YOY Change | May 2013 | May 2012 | May 2013 Market Share | May 2013 Market Share Rank |
|---|---|---|---|---|---|
| Luxury Total | +5.01% | 158,924 | 151,337 | 100.00% | N/A |
| Cadillac | +39.88 | 13,808 | 9,871 | 8.69% | 6 |
| Jaguar | +33.49 | 1,435 | 1,075 | 0.90% | 12 |
| Audi | +15.00 | 13,228 | 11,503 | 8.32% | 7 |
| BMW | +13.81 | 25,230 | 22,168 | 15.88% | 2 |
| Mercedes-Benz | +4.09 | 25,561 | 24,556 | 16.08% | 1 |
| Lexus | +3.57 | 22,229 | 21,463 | 13.99% | 3 |
| Land Rover | +3.37 | 3,554 | 3,438 | 2.24% | 11 |
| Volvo | +1.33 | 6,329 | 6,246 | 3.98% | 10 |
| Lincoln | +0.43 | 7,305 | 7,274 | 4.60% | 9 |
| Acura | -1.52 | 14,364 | 14,586 | 9.04% | 5 |
| Infiniti | -25.42 | 7,899 | 10,592 | 4.97% | 8 |
| Buick | -3.14 | 17,982 | 18,565 | 11.31% | 4 |
But even if Cadillac splits the median in terms of market share, the fact remains that the brand is growing faster than any other brand (luxury or not) in the market. More importantly, Caddy has also developed a winning formula with the ATS and CTS in what is a very competitive market and market segment. As such, future products including the ATS Coupe, ATS-V, 2014 CTS, 2015 Escalade, LTS, and the rumored ATS-based crossover, among other future vehicles, should ensure that Cadillac’s sales continue to climb now and well into the future; perhaps they won’t climb at 40 percent intervals, but growth is growth, however you look at it.
So in our opinion, the question is one of “when”, rather than “if”, Cadillac will occupy one of the top three spots in the U.S. luxury car segment. Your educated predictions are welcome in the comments.
Comments
I say in 3 years cadillac will be in the top 3. Their sales are great considering the bulk of them come from just 3 cars (ATS, XTS, SRX). The redesigned CTS and Escalade will be great additions and shoot sales numbers up even more.
I have to agree that they will move up. I do not think they will be at 25,000 units in 3 years but 5-8 years it could be done.
Once the LTS arrives and sets the tone for the division it will draw more people in to the established model we are just now getting.
It will be interesting to see how the CTS does next year. Sales are down now since it is out going.
I think for me Cadillac is missing something right now like in yesterday… What is that, uhh well a range of products that rivals that of the top competitors in this list BMW, Mercedes ect… Lets be real there is something missing maybe theres allot missing. Growth is good lets hope Cadillac roles the right Dice… What is needed: Flagship, Convertible or Roadster, Sports Car, SRX update, A unique car that sets it apart from all other manufacturers…
I think you’ll find a lot of this in the coming years, including:
1. New compact crossover on the Alpha platform to battle the X3, GLK, Q5. Think CUV variant of ATS.
2. All-new SRX (also on the Alpha) to battle X5, ML, RX. Think CUV variant of CTS.
3. ATS coupe and possibly convertible.
4. Flagship sedan (LTS).
5. Roadster/sports car (discussions are ongoing last we checked with sources).
6. V variants of ATS and CTS.
Introducing, redesigning, or repositioning the first three will allow Cadillac to compete in over 85% of the luxury segment globally. That number is currently somewhere in the 65-70% range, depending on which segments you’re considering. Either way, the first three are “core” vehicles that will add volume.
Meanwhile, the 4th and 5th will build the brand’s image. The flagship sedan seems to be a requirement to be considered a “real” luxury automaker, while the roadster attracts a “lineup” buyer who buys a second (“weekend”) car to complement the daily driver.
All in all, Caddy will get to the top 3 in the U.S. — but the “when” depends on the timing of the aforementioned products. It’s a great time to be a GM (and Cadillac) enthusiast!
Any better skinny on the ATS-based crossover? Time?
Or will it be smaller than the ATS, as GM may see more growth potential there?
Stephen — as you might already know, there’s nothing official about any of these vehicles yet — so the following is a combination of speculation and educated guesses on my part… so here goes.
Outside of the midsized Lexus RX, whose popularity and positioning is somewhat an anomaly in the U.S. market, the compact crossover segment is the biggest one by volume. The biggest contenders here are the X3, GLK, and Q5. Keeping that in mind, the other noteworthy element to consider here is that GM developed the current (second-generation) SRX to compete directly with the Lexus RX; since Lexus’ most voluminous models (ES, RX) are now being pursued by Buick, it stands to reason that Cadillac will go head-to-head with the Germans and introduce a compact CUV and a midsize CUV — both based on their compact and midsize sedan offerings — a strategy already employed by BMW and Mercedes-Benz. Meanwhile, Buick will take on the RX.
In that regard, the timing of the ATS- and CTS-based crossovers is dependent on GM’s ability to launch a midsize Buick CUV; something smaller than the Enclave, yet bigger than the Encore; this vehicle will most likely carry either the Envision or Enspire name, and be based on either D2XX or E2XX — which are due to land around 2015 or 2016.
So, given the success and popularity of the current SRX, the logical thing to do would be to introduce the Alpha-based Cadillac crossovers (perhaps named ATX and CTX/SRX) around the timeframe of the new Buick crossover, which should coincide with the discontinuation of the current Theta Premium-based SRX. If I were to guess, we’re looking at 2016, and the 2017 model year — so three years away.
As for size, think right along the lines of the GLK, X3, and Q5.
I was going to complain, but your logic has held it back a bit. The sticking point is the RX. It is such a money maker for Lexus that I am still having trouble with Cadillac dumping the Theta Premium and going after the X5 and GL instead with a CTS based SRX like the last-gen SRX. On the other hand, it makes sense for Buick to have the Theta Premium (9-4) and Cadillac go up market.
If these new vehicles happen, Buick and Cadillac will be covered for CUVs, but I still see Buick missing a Park Avenue type of vehicle.
Buick needs a real flagship, something more than the Alpha based GNX rumor. Buick needs an Omega based boat.
I get that each brand needs to remain within set pricepoints; however, an expensive halo car resting in the clevage (Impala, SS, ‘Vette) gives the brand full range after glow. Buick needs this to compete with Lexus and shift away crom the Ford comparisons.
Caddy is like a new marquee, a brand built from scratch for the expressed goal of beating the Germans. I still remember the old Fleetwood–what a difference 15 years make.
Caddy already beats everyone in terms of quality, as does Buick. Within three years, Caddy will be a top three while Buick will top the Japanese brands and share top spot with Lexus.
G M is on its way to being the top luxury brand with Caddy and Buick.
Alex, Thanks for the excellent comparison… Lets hope your right with these… This article is the reason I like this site… Real journalism about real competition. Great Job…
I also hope I’m right 🙂
And it’s our pleasure to deliver this kind of coverage. Thanks so much for your support!
Alex, what about the ’14 CLA? Do you feel that may cause a ripple in the pond?
With the change over happening soon at Buick (not the refresh but the actual product replacement cadence in 2016 or so), which also has rumors of more product, don’t you think one of Cadillac’s biggest obstacle to being in the top three of the list you made, their own sister brand?
The work at Cadillac like much of GM is just now coming to market. We are only at the beginning as much of what we have seen were left over projects started before the Chapter 11 to hold things over till new products with the new money would arrive.
The XTS was started years ago and shelved so Cadillac would have new product in the early years post Chapter 11 while Cadillac worked on the Alpha bases ATS and CTS. From here on we will see new and greatly changed products and their variations.
If GM had not worked ahead and shelved these products they would be much like Chrysler and only displaying modified old models like the 300 and 200 that amount to a refresh with a better interior at best. In this time GM has a new XTS on older platform but now we are seeing the introduction of the Alpha line and a platform that is really world class vs. the 300 that was a old rehashed Benz and is now an aging overweight Chrysler.
The other lines will show great change soon as well as we will see new product not even imagined yet. Keep in mind GM is not announcing many products till we are about18 months out anymore not 5 years as in the past.
The whole GM revamp will take at least 10 years and there will still be work to do from that point on. Cadillac will not compete head to head in all segments BMW and Benz are in for a while as they need to get the building blocks in place to make a solid foundation and build a reputation and image to permit the additional models to be made.
Just look at how many times Cadillac tried to do a sports car only to fail. The XLR was not a bad car but it lacked the division image and reputation for many to be willing to plop down $100,000 and feel like they did the right thing. Resale prices today reflect this.
Now once they build up the ATS and CTS then interject a LTS that is class leading it will earn the trust and desire of the public. The modern day BMW was built on the back of the 3 series not the 7 series in the United States. It may take some time but they are seeing steady growth in these areas.
Just look at Lincoln and they have no solid path to the future and right now are repeating the same mistakes Cadillac did in the past.
Scott, Agree with what you are saying… To your point, we can all be happy Cadillac is tuning the corner. I just think they need another key product on the market right now. I think its interesting we still have the CTS V models in previous gen on market for 2014, which is fine I guess just a little strange.
Do you thing that Cadillac does not wish they had 3 more key products on the market right now?
The fact is even a company like GM just does not have the money or man power to do all they want and need at one time. GM concentrated on Chevy first to get the Volume and profits up with cars like the Cruze and the new trucks. They are now getting Cadillac in shape in the next couple years as they start to work on Buick once there is space created with the newer more expensive Cadillac models.
Buick alone is chomping at the bit because just look at how long they have been just getting Opel hand me downs. Good cars but older Opels. In not too much longer I suspect we will see new Buicks on new platforms and they will not be old Opels but cars built in conjunction to be a Buick and Opel much like Chevys are now Holdens and Chevys now.
The tie over for the CTSV is the fact there is no new Alpha CTSV yet. Do you go into a market with no V at all or do you offer the old one with some special options and editions to get you by till the new one is ready. An old car with some tricks is better then no car at all. Hard to make money if you have nothing to sell. The old line is still up and can be kept moving to so what it needs to do. Overlaps are very common anymore with many models.
GM has made it clear all models will not be out at the same time or same year with many Cadillac’s and the Alpha in particular. The Coupe is coming and was behind the Sedan as I suspect the Coupe was done in conjunction with the Camaro since both need a short wheel base.
Scott, true… All good points… Thx…
Good job so far, Cadillac! And as you guys have noted, they are just getting rolling. Alex, I think and hope your assessment is what all they are currently working on. And of course some product decisions have not been made yet. At the least, from what Dan Akerson said they will have the platforms, engines and power trains in place by 2018, so sort of in line with Scott’s comment, by not long after that we should see the final pieces falling into place.
On another note, I wonder why Infiniti has crashed so badly? And whether they have a bevy of new products about to come out to fix that? Not that I care if they do well lol.
It’s good news, and I’m glad Cadillac figured out they need RWD cars to compete against real luxury cars. Wow, it only took their inept management about 25 years, I guess that’s fast for GM. Still a MAJOR embarrassment that the Germans outsell them 2 to 1 IN AMERICA. Meanwhile, they sold 19 Cadillacs in Europe. And Lexus with all that “heritage” tracing back to the year 1989 still kicks Cadillac’s ass with close to double the market share.
I hope the sales trend continues for Cadlac but I don’t see it happening. Lexus, BMW & MBZ still make a superior quality car (note they are 1, 2 & 3 in share- in the USA!). Until GM figures that out, they’ll never outsell the Germans & the Japanese in THEIR HOME MARKET. Does everyone realize how bad this is? Also, Lincoln is still in business?
One day at a time. The ATS only just got here and the new CTS is on the way. A new alpha SRX can’t be far away.
I hope you’re not suggesting that Cadillac should be top dog tomorrow. It took years to shake off the “old way” of doing things at Cadillac; something like this isn’t going to happen overnight.
My point exactly….
“I hope the sales trend continues for Cadlac but I don’t see it happening. Lexus, BMW & MBZ still make a superior quality car (note they are 1, 2 & 3 in share- in the USA!). Until GM figures that out, they’ll never outsell the Germans & the Japanese in THEIR HOME MARKET. Does everyone realize how bad this is? Also, Lincoln is still in business?”
How bad what is?
And those who are up on the latest in the luxury car game will take you up on the “Lexus, BMW & MBZ still make a superior quality car” statement.
Ultimately, it takes time to completely turn a brand, its products, and its image around. Let’s revisit this in 5 and 10 years and see where Cadillac is.
One model, one segment, and one market at a time. At some point, Cadillac will hit that “turning point” and things will begin “changing” rapidly, as they are now for Audi globally.
Graw, lady and Alex, I completely agree. It’s hard to remember to be patient, but the turn around is going to take a long time, as in many years. Plus, while Lexus is arguable, I don’t believe that in recent years BMW and MB have made a better quality product than Cadillac.
Mike GM has not taken 25 year to get here. The truth is it took them 35 years of decline and 4-5 years to recover to this point. Now that they have the money they are building cars on par with the Germans. We are just now getting the ATS and the CTS to the point where they will compete and possibly beat the others.
Now that they have the cars It will still take time to build up acceptance and reputation for what they presently have to offer.
BMW was built on the back of the 3 series and then later models and it was not done in one year. It took them 10 year at the least for real main stream acceptance.
Reputation and respect has to be earned through good products and time. GM and Cadillac are now in a phase of increased acceptance and no longer are offering models that do harm to their good name.
I think you are right about the 35 yr decline, I trace it back to the 1981 V8-6-4, the first of many bad engines Cadillac made, followed by a series of disasters (4.1 DFI., 4.5 and the Northstar- all blew head-gaskets regularly). This turn-around is quite recent as you suggest. My point is, the alarm bells at GM should have went off in 1990 after the awesomely made Lexus LS 400 hit the market in ’89, but they did nothing. I still see first gen LS400s in Los Angeles now and then, because the quality was LIGHTYEARS ahead of an ’89 Sedan De Ville. They need to get serious about quality and RWD architecture if this sales bump is to continue. When I see products like the XTS I see the same old stuff that ruined the brand. As you can see from the market share numbers, the US market sees Cadillac management like I do- all of us are not wrong.
I’m glad THIS GM management team wasn’t running WW II or we’d be occupied by the Germans & Japanese- you wouldn’t know we won by looking at the current market share numbers.
That is the point you are missing here. You blame the sins of the past on those who are fixing today.
The ATS represents todays management. The XTS was a leftover of a admin that had no money and did the best they could with what they had. The XTS is not really a bad car and it was only to bridge the past to the future.
GM was losing the DTS and needed more than one car in the show room. The XTS was pretty much done and they took it and updated it to help buy time and move DTS owns in more of the direction they are going. I do not see the XTS as a long term vehicle but one that fills a gap till new improved product would come along.
The old way of doing things would have left the DTS on line and hurting the image of Cadillac and doing more damage. The XTS competes well with the upscale Acura and is making more money than an empty space in the showroom would.
I see the XTS moving more to a fleet status in a Captiva way in a few years as we will see a LTS that is not ready yet to help fill out the line.
You have to remember you have only seen two real products of the new management in the new CTS and ATS. And even those who did the XTS did well with all they had to work with. Cars are created over years and the XTS is only a gap filler.
How about a model to model volume comparison? We all say they will do much better when they have as many models but do the facts support that? This will show that once they fill in the model holes whether they can compete volume wise.
ATS 3 series A4 C class
CTS 5 series A6 E class
Etc.
Thanks for all the info Alex, I hope you’re right. I agree that Cadillac needs to be in more market segments. They are on a roll and the future looks good for them.
I think Cadillac has found a winning formula they have learned a lot through out the years evolving as a company and a brand.If Cadillac aims to be the standard of the world they should not get stagnant with their products and refresh cycles.I would like to say caddy will be in the top 3 in the next few years but realistically I’d say 4th.The all new CTS and Escalade are the key.
Alex
Have the MSRP been revealed yet on the 2014 ATS Turbo Lux? When can I order one. Thanks.
Gerry
I haven’t heard that the ordering has been opened yet Gerald. And this is what I believe, is that Cadillac is waiting for the peak on the ’13 ATS to peak, at least, before the ordering opens. And there’s the whoopla on the Coupes ATS as well. I feel in love with the 6.2l V, and am anxiously awaiting the 3.6L Twin Spooler.
As for the 2.0T market, hoping they’ve got the kinks pulled out of the variable timing… more than a few headaches on the little brother HHR SS (2.0T/260hp). The ATS is basically the same power plant, just tuned 10+ hp for size. FYI, we got the stock SS to 400 Hp with tuning, and ran solid for a year.
My ATS is in that sales group….took it on a nice long trip this weekend…..did well in every way and got almost 32 mpg combined…love the car….quiet and very peppy 2.5l 🙂
I’ve heard and read about the 2.5 being too slow and noisy. You seem to happy with it, so what am I missing?
Grawdaddy….have had my ATS one month today…………….450-mile trip this weekend and have absolutely no complaints…smooth, quiet, peppy…great pick-up and took the freeway traffic perfectly; I drove 2.0t and did not see a lot of difference. Gets great mileage also; I made a good choice with this car and would do it again.
Thanks.
Lately, I’ve been fiddling about with the ATS configurator. After all the playing I’ve done with it, I still keep coming back to a 2.5 lux rwd as being the most “agreeable” car for me. With nearly every review of the ATS saying only the 2.0T or the 3.6 matter, I’ve been wondering if my choice is wrong.
Grawdaddy…have you driven an ATS and decided on one yet? Have fun shopping 🙂
grawdaddy…I have truly enjoyed my 2.5l ATS as I said…..depends on how/where you would drive the car….check out the car at dealer and see what engine you prefer….I drove 3.6 in town….not any distance….I just don’t need that engine….the 2.5l has all the power of most v-6 I’ve driven. Only you will know by test-driving one. Good luck!
Danny and Graw…
I’ve driven all 3. As the dealership Concierge, I have to admit the 2.5l doesn’t even spark my interest, it’s just blase. It doesn’t have the punch of the 3.6l or the spunk of the 2.0l.
There are some concerns that I have that I’m hoping that Cadillac has overcome and they are the timing chain issue that was once on the 3.6l CTS and on the 2.0l the plastic timing chain guides…..
Lady…to each his own as they say….love my 2.5l….it has ben perfect…each customer may chose whatever is best 🙂
Danny.. not disagreeing with you at all… to each his own.
You may have picked the one power plant that hasn’t had any issues, or none that I’ve heard of.
Kudos to you! Still the ATS is a stunning vehicle… so what color did you get?
Lady….yes that is true……I have white diamond over caramel with heated seats. I sure hope the car is troublefree!! I have had it only a month so I shall see how it goes..could have gotten a BMW….but I bought American and am proud of it. Yes, very sharp car…I get some looks from euro drivers too 🙂
Danny did you check out the Blue Opulent?
Lady…no blue for me at this point…had planned on silver over caramel but found the white one with heated seats instead….love that red also. If I trade up for CTS in a few years, probably the phantom gray over red or tan….
I wouldn’t break out the champagne celebrating top 3 in the luxury sales race just yet. Personally, I thought the ATS would be selling better at this point? Yes, it’s a new name, new size, etc…but I was expecting 4000+ per month by now?
Recent Cadillac models, specifically the very good 2008-13 CTS was an “in-between” car versus MB and BMW. Closer in size to the E and 5, closer in price to the C and 3. It offered many that just right size alternative at a very good value versus the Germans. Now, Cadillac is aligning their models directly with the competition in size and price, specifically the ATS and new CTS. The cars look very good and offer all the features, performance and amenities, but arguably the value aspect is now largely gone. I think the new ’14 CTS is going to be very interesting watch……