An improving economy and cheap financing lead to strong sales in North America for luxury automakers in 2013, and Cadillac was no exception. While Mercedes posted the best sales figures of the luxury brands, Cadillac had the more impressive year in terms of growth, according to BusinessWeek.
When comparing monthly sales in 2013 against three competing luxury brands, BMW, Lexus and Mercedes, Cadillac finished fourth. That doesn’t sound like news to laud, but Cadillac is keeping pace with its competition, something it wasn’t great at doing in years prior.
Last year Cadillac posted the largest percentage increase of the four brands in January, March, April and May. In March, they sold nearly 50 percent more vehicles year over year. So even though the other dealerships might be moving more metal off the lots, none are seeing the types of growth Cadillac is.
In 2012, Cadillac saw roughly a 32 percent increase in number of vehicles sold, demolishing Audi and BMW and being beat out only by Mercedes. However BW points out that Mercedes had the larger base to begin with and in relative terms, Cadillac sold 25 percent more vehicles than Mercedes year over year.
If Cadillac manages to hold onto its current growth rate, it will become the largest luxury automaker in North America within the next 5 years.
Comments
These number are impressive considering how Cadillac offers a lot less vehicles than it’s competitors but the growth will only continue. The CTS is now hitting the market after months of falling CTS sales, a new Escalade in the spring and even more vehicles in the coming years. Cadillac will definitely position itself in the top 3 soon and I could see then being never 1 in 5 years.
I agree with everything you’ve said, except for:
“Cadillac will definitely position itself in the top 3 soon and I could see then being never 1 in 5 years.”
As much as I would like to see that happen, I don’t think Cadillac will be in the top 3 (US or Global) in 5 years, or even 10.
When Cadillac started being serious back in 2002, we all knew that the climb back up to social relevance would be a long, long, long climb. Something that would take many decades of struggle that would demand steadfast dedication and integrity. With that, product that is not just good, but better.
It’s going to a protracted journey into that top 3, and Cadillac CAN make it. But not too quickly, and not without showing the world first that they can deliver.
When you look at what is coming in the next ~18 months:
ATS Coupe
ATS convertible
Escalade
3rd gen SRX
Lambda CUV
CTS & ATS Vs
Things are looking good.
I thought the new SUV (it should be called the LRX for Large and the SRX for Small) was supposed to be on the Omega instead of the Lambda. I haven’t heard anything about an ATS Convertible, is that actually true? What about a new ATS andor CTS wagon? I also think that an SRX-V would be cool, maybe with a 5.3L that has 370HP and 395LB-FT. . .
At most I could see a SRX-Vsport and it should come with the 3.6 TTV6.
Yeah, very true. It’s just that when everybody was talking about a “new” 3.2L Twin-Turbo that would have around 500HP (stock), I now all the sudden feel like the 3.6L Twin-Turbo is quite underpowered (even though it very well isn’t). GM should have VVT, SIDI, iVVL on all of their I4’s and VVT, SIDI, AFM, iVVL on all of their V6’s and V8’s. The 3.6L really needs some better economy numbers (which could be done by adding iVVL and AFM). Here GM is saying that 16/23 is “impressive” in a CUV, you see where I am going with this? I want 301HP as well as 18/27 mpg…..
Not to mention the big cadillac.
Sales have increased over last year because Cadillac went from having 3 models in early 2012 to 5 models in 2013. Of course that’s not something they can do every year, so no, they’re not going to maintain this rate of growth.
Not surprising to those of us that have been watching.
In the past BMW and Benz would not even say the C word and now they are both watching for the new V models as they stated with great interest. Hmm. They are saying that about Lincoln.
No Matter how well cadillac does in the luxury market there Will always be people say they are no to the level of BMW or Benz which is hogwash!
This idea the you have to build cars in each segment for decades in order to change people’s minds shows just how lazy we are as a society! People are not willing to take the time to look at the cars and trucks in a certain segment and give a honest evaluation of the best of the bunch!
They expect public perception to tell them what to buy, either by listening to a friend or reading a magazine!
How pathetic have we become?
Just saw the new CTS commercial last night for the 1st time. IMO… the CTS is dynamite. Not too many years ago, I wouldn’t have even glanced at a Cadillac. That’s not the case now.
Like a beautiful woman, style/looks is the first thing to catch the eye. Hundai has proven, that the machine can have a inferior suspension and drive train, but if the machine looks good, with fresh new styling… many machines will be sold.
Most of us know that GMs suspensions, and drive trains are equal to or surpass the competition… with good looks, that’s what wins the game years or decades from now.
This is what the problem is in terms of buying a car! People only look on the surface to determine if they want a car, forgetting about the rest of the car if foolish to say the least!
Why can’t people take the time to learn what the entire car has to offer?
JMOP , but even though Cadillac is doing much better in styling and build quality , I think they better keep an eye on cost . With the likes of Mercedes coming out with the C-class ata cost of $ 29,995+ that competes with Cadillacs CTS , ( $ 41,000 + ) , which car do you think buyers will take home ?!
I also believe it is a mistake for Cadillac to ” try ” and build a $ 100,000. car to compete with others in that class like the S-class or even an Audi 8 . In my neck of the woods you just don’t see those types of cars .
CTS and CLA do not even compete with each other! Even if they did, I would still buy the CTS. Because I know that it is a better car for the money (which everybody else should know too!).
@Kieth
No, the Merc CLA is not the same as the C-Class, it is FWD compact. Even the AMG version (CLA45 AMG) only has 360hp. It does not compete with the CTS, it more so competes with the Regal Turbo and GS and lower spec ATS.
Brian it takes time to convert people as the BMW and Audi were rust buckets coming out of the 60’s and had to earn their status. Cadillac will have to do the same but they are well on the way now as they have the respect of the other brands now. This is as great of endorsement as you can get.
GM has more models and time to win more buyers. Now selling more Benz and BMW here is not a tough sale. Now to make gains in Europe is where the true accomplishments will be seen and felt.
Cadillac is not going to win over every BMW buyer nor are they going to dominate Europe but if they own the American market and make in roads in Europe it will be a great accomplishment.
The only reason people think it takes years to change minds is the don’t want to put in the work to find out how well each car is really put together!
Wrong. The reason why people are unwilling to change their minds quickly is because of the poor product Cadillac hawked for decades.
Catera, Seville, Deville, Eldorado, Fleetwood, Allante – cars of poor workmanship aren’t something you can sweep under the table in a model year.
The long, multi-year, product-proven approach is the only way to win their hearts, not with your foolish ‘I’m American’ losing tactic.
You people really don’t get it do you, the reason they still have those impressions is because they don’t take the time to study the cars that are on the market now!
Let me ask you do any of the cars built today have anything in relation to those old cars you mentioned?
No! Cadillac’s cars are as good if not better then any car on the road today for the segments they compete in! Don’t believe me go ask a BMW owner the next time he is sitting next to a cts v at a stop light!
Why does BMW and Benz sit up and take notice when the cts v hits the track in Germany?
Get off your ass and go look at the cars! Stop living in the past!
Guys bot of you are correct.
Cadillac lost image and trust with all the crap they built. So today they do not have the image or trust of the public even though the cars today are world class. Many people who buy here really have no idea how good these cars are.
Give them 5 years to win back the interest, trust and let the people learn just how good these cars are and Cadillac will be where they need to be here and growing inroads into Europe.
It shouldn’t have to take 5 years
Trust is earned and not handed out.
Minimum 30 years of hard labour to atone for the crimes Cadillac has committed. 10 years of their sentence is complete and they’ve made good effort to rehabilitate themselves. Yet Cadillac is unfit to rejoin high society at the moment.
Powertrains need work, and would hurt to have the assembly line workers LOOK the part? Get them in uniforms; press photos from the assembly line shouldn’t show someone in an Oakland A’s shirt putting together GM’s best cars.
I agree it should be earned but you are out of your mind if you think it takes 30 years!
Here’s how long it takes one test drive in a new Cadillac! That’s all you should need! But for most people that takes too much effort!
What about those that have no intention of, or can’t afford a luxury vehicle. The younger generation aspiring in 10-20 years to own one. They can’t or won’t test drive one. How do you convince those people that Cadillac has caught up to the Germans? Yes they can read reviews that say Cadillacs perform very well – but how many non-car enthusiasts actually read reviews if they’re not actually looking to make a purchase. If you asked that type of person which is the better car – they would say the Germans. They wouldn’t be able to tell you why – that’s just what they’ve blindly accepted as the truth. Cadillac is doing well, but its still going to take time for Cadillac’s improvements to permeate to all reaches of society to attain that level of brand recognition that the Germans have. That’s what luxury cars are all about. Anyone can make a luxury car (eg. Hyundai…), but it needs to have that brand recognition. I agree with grawdaddy – about 20-30 years – which is about the time for a new generation of buyers to come in with a fresh impression of the brand.
Time means Nothing, what you think is kool at 20 have little to no interest in those things at 50!
How long did it take lexus to be kool? A few years!
Really? You’re telling me that 20-somethings have no interest in all the sports cars and luxury cars out there that only older and more well-to-do buyers can afford? Well, of course they do. That’s the whole reason for building a reputation. So the younger generation can aspire to own that BRAND (not a particular vehicle model) in the future even though they have no clue what that brand will have in its line-up in 10, 20 or 30 years from now. All they know is that one day they will own a BMW or Mercedes, and hopefully one day Cadillac will be in that short list.
Lexus does not have history and they are not up to the level of the Germans. All Lexus had was that they’re a more luxurious Toyota – a brand that was already very positive in the minds of the average consumer.
Kids can want all they want but once they get to that age they might not want those things at that point!
That’s why a luxury brand needs to adapt to attract the buyers. Audi is pushing it’s A1 and A3 models, BMW has the forthcoming new 1 and 2, and Benz has has the A and B class for years now. 30 years ago, subcompact luxury were unthinkable, but back then they also thought BOF cars were superior and cars came with ashtrays embedded in the backs of the front seats. It used to be that automatic transmissions were a luxury feature to, but now you’ll be hard pressed to find a car with “standard transmission”.
Nevertheless, people wanted the best and most exclusive stuff back then as much as they do today; that something extra that they have that their neighbor does not have. That’s where those 20-30 year olds will put their money, in the hands of a brand that has a long, lengthy reputation for making luxury cars.