Cadillac is in the midst of a huge transformation. With the introduction of the large XTS and compact ATS, the recent launch of the mid-sized CTS and the ELR plug-in coupe as well as the upcoming rollout of the new Escalade SUV, Cadillac dealers are as busy as ever.
The Automotive News talked to Howard Drake, chairman of the Cadillac National Dealer Council, about the massive overhaul, how it is affecting the dealers and what they expect from the executives at the top. Drake said Cadillac dealers are “craving stability” from General Motors leadership while trying to increase the expertise of their sales staff to keep up with all the new products.
Drake, who is also the owner of Casa De Cadillac in Sherman Oaks, CA. told AN the Dealer Council is pushing Cadillac executives to provide ample marketing support for all the new vehicle launches. Drake also said the dealers aren’t used to having to push an entire lineup, as they got by with just the CTS, Escalade and SRX in the past.
“Now we’re trying to sustain a family, including ATS and SRX, which are our volume nameplates,” said Drake. “We’re not used to pushing a bunch of different segments at the same time. That’s a competency that we’re just developing now. I believe they’re up to the challenge. But that’s all new”
Cadillac executives have promised 8 new vehicles to be introduced by 2017. Of the upcoming new models, Drake said an updated SRX is one of the most important to get into showrooms.
“I think you’ll see an increased focus on SRX. It’s such a good car within the segment, it deserves better. We had a mid-cycle enhancement for the 2013 model year and we’ve gotten almost no bump out of it. I think Cadillac is going to recommit to SRX this year.”
Drake also said the addition of the next generation of V series models, which he expects in dealers sometime in 2015, should help with Cadillac’s brand image.
“I think the next V series will help a lot. Having that combination of a socially responsible and good looking car in the ELR, a great SUV in the Escalade and then to go out and make a world class V series performance sedan, that will tell people how substantial this brand is and how good the engineering is.”
As for the Cadillac Dealer Council’s message for Cadillac in 2014, Drake wants to know where dealers should direct returning customers.
“We definitely have a stronger, better positioned lineup. But, of the hundreds of thousands of cars dealers have sold over the last few years, what are the paths for old customers to become new customers? Where does that old CTS guy go? How do we talk to him? When is it appropriate to push him up or down?” Drake questioned. “Take DTS (sedan) owners. Is it better to move them to a CTS or XTS?”
Cadillac dealers are still adjusting to the busy transition. Drake pointed out that yes, 2013 was a good year, but they are still looking to get back to where they were in the early 2000’s.
“Yeah, things are a lot better. But good should they be?”
Comments
I would say outgoing CTS owners move to the ATS, STS owners move to the new CTS, and DTS owners move to the XTS.
Glad to hear a new SRX is on the way.
This guy is an idiot.
The customers just need to be shown the cars by sales staff that know the product inside and out and then let them choose.
The dealers complained they did not have enough product and now they complain they have so much product.
In a dealer like Chevy it is bad enough when I go in and I could school the salesman on the product. It is worse to have a customer go into a Cadillac dealer ready to spend 2-4 times what they would spend on a Chevy and not have him know the product inside and out. The dealers could do well to committing to standards for the staff and holding them to it. Not only in the way they treat customer but also knowing the product. If they can not pass test on the product they do not sell cars.
The key is many of the returning customer who have had cars like the DTS will either go to the XTS or Buick. The CTS will split between the CTS or ATS depending on how much they can afford.
The LTS is going to be a whole new deal altogether.
The real goal here is the new Cadillac owner who is moving from Lexus, Audi, Acura, and hopefully Benz and BMW. These folks need to be show properly what Cadillac has to offer and how what value and performance it holds.
Then the ELR customer is all together new. They need to be shown why at this time the car is better than a Tesla as you can make it your only car and go any where anytime and not take days doing it and then also drive the car to work daily and never use a drop of gas.
The SUV’s will sell themselves. These people generally know what they want. The SRX is just old and needs replaced and I hope the other new smaller SUV models will be RWD based on the Alpha and give the Euro models a challenge.
I’ve never over estimated the intelligence of the American people.
You’re absolutely right Scott. It takes a knowledgeable sales staff, that is well schooled to present what each model has to offer in a way that the customer can grasp without being made to feel stupid. A good salesperson is the sole responsibility of the dealership.
Only to the knowledgeable, are salespeople not necessary.
I think if they had tighter control of their dealers, that would really help. The only thing that Cadillac dealers need to do is treat their customers well, especially their new customers, or those who have been with GM for a long time. It’s kind of ridiculous when you walk into a Cadillac dealership and they refuse to let me test drive a car even though I am interested in getting a Cadillac in the near future, and they don’t bother to show me how to work the CUE system or even talk about the good things about CUE. I know a lot about these cars, unlike these idiot salespeople. Hate to say this, but Cadillac should maybe look into how much tight control Lexus has over their dealerships, and how their dealerships treat their customers better. People who buy luxury cars frequently jump from one brand to another, and they can easily be turned off when the Audi or Cadillac dealer treats them like crap, causing them to go to Lexus.
The only thing wrong with the Cue is the touch system of it. Add some buttons and alternative controls and it will change many minds.
While some of these modern things are futuristic there are some things that buttons and knobs still interphase better with the driver.
We first need to understand not all GM dealers are crap. We have some very good examples out there. Now on the other hand if we have even on bad dealer that is too many.
This is where you almost have to dig into the law and dealer agreements that were signed long ago and see just how much and were the control is for GM and what they can do about it.
I do know the surveys are a big part of this deal as the dealers beg and plead for you to give them top marks to help them out. Anything but a 5 is a problem to their overall score. They lose a lot in discounts and other deals with GM.
Also I know GM can and will help dealers that are top performers in other ways off the record.
I just do not know how and where the line is where they can discipline a dealer. I know as part of the make over they helped a lot of dealers that were good dealers and those who were not just got the standard help.
There is a lot more to this than we know and until we have all the facts it is difficult to know just how far GM can go with the dealers.
“the dealers aren’t used to having to push an entire lineup, as they got by with just the CTS, Escalade and SRX in the past.”
Dealers had 3 different cars, now they have 3 more, now they have 6, BMW alone has way more models than that, not to mention Mercedes-Benz, the M variants, and the AMG models, Cadillac dealers don’t have that many cars, if they can’t remember the specs on the only 6 cars their dealer is selling, I’m afraid that those dealers might have terrible employees, who aren’t interested in their jobs. Again, they’re complaing about 6 cars being too many for them, imaging what it’s like being a Mercedes or BMW dealer.