Cadillac U.S. sales chief Bill Peffer, who started his job 10 months ago, has left General Motors “to pursue other interests,” according to GM spokesman David Caldwell in an email to Automotive News. Peffer is the third sales chief to leave the company in the past two years. Kurt McNeil, head of U.S. sales operations for GM, will serve as Cadillac’s vice president of U.S. sales and service in the meantime.
The news comes as Cadillac is experiencing a two-percent downturn in sales, with the ATS experiencing a 20-percent decline. Peffer had forecasted 10 percent growth for 2014 on top of the impressive 22 percent jump in sales last year. In an April interview with Automotive News, Peffer acknowledged that competition in Cadillac’s segment had gotten tougher, espeically with the new Mercedes CLA and Audi A3.
As the head of U.S. sales and service for Cadillac, Peffer managed a sales organization of over 100 employees and served as the company representative to Cadillac’s 900+ dealerships.
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Not good — there’s some backstory going on here. I’ll give my impressions. The ATS got a bump from the pent-up demand from the diehards for this type of vehicle. Otherwise, while it meets the competition, there’s nothing to drive those who typically purchase BMWs, and to a lesser extent Audis, and to even a further lesser extent Mercedes to buy this vehicle. Next up — CTS. Design by committee. Front end totally doesn’t go with the rear. Mark my words — Cadillac will be disappointed with the sales results. ELR — WTH were they thinking? Price that puppy $20K less, and we’re talking. Escalade — love it; it’ll do OK; price it $10K less, and it’ll sell like hotcakes.
And we still haven’t discussed the Elephant in the room — CUE. As a first-gen system, it’s incredible. But MB and BMW are on second and third-gen. There, CUE pales.
I have the 2nd Gen CTS and I still love the design. There is nothing on the road that looks like it.
I’m planning on getting a 2nd Gen CTS-V coupe because it is AWESOME in looks AND performance.
I drove down to Miami yesterday and saw a couple of 3rd Gen CTS on I-95.
I have to say the front end with the headlight design looks good but the rear — not so much.
The overriding concern I have is that Cadillac is going back to some “meh” design where its vehicles look like other cars on the road. I can see a little bit of an E Class influence in the way the 3rd Gen CTS looks.
I hope they can continue with their unique designs.
Let me add this, too. Born and raised in the Detroit area. Now, we split our time between Seattle and Phoenix. Have owned an STS, two of the former SRX, and two of the new SRX; now own a Benz.
In Seattle, Benz and BMW (and Audi, let alone Tesla!) are a dime a dozen. It’s rare day I see a Cadillac. And typically it’s an SRX — which says a LOT about the price point of this vehicle. Very, very few ATS’s — particularly compared to BMW 3-series and MB C-class . . . . Cadillac has aspirational pricing, but to get these import/German guys into their vehicle, they need to make a value proposition first.
“Cadillac has aspirational pricing, but to get these import/German guys into their vehicle, they need to make a value proposition first”
Luxury is not a value proposition and never will be. Cadillac is (supposed to be) a luxury brand, and if it is to be managed like one, its prices need to reflect that of what people expect of a luxury product.
The prices stay where they are; in lockstep with the mainstream luxury car market. Cadillac’s engineers should be steadfastly obsessed with product quality and craftsmanship, where product superiority is too small a phrase. Additionally, marketing will need to accurately target the luxury consumer and not the common Joe.
Discounts and products priced to rub shoulders with substandard Chrysler are what got Cadillac into the mess it’s been fighting to get out of. There is no way Cadillac should diminishes itself just to appease the few who are price conscious.
Well said Grawdaddy.
I am getting the idea that at Cadillac there is more than one vision of where they are going and this is leading to people being on different pages.
I am not sure what pressure is being placed here but something is up here for such turn over.
I hope they can link up as one vision and one path to keep this division on track. It is going to be a tough 5 years as they will see slow growth and will have to continue to build the divisions image. It has to be earned as you can not buy it, Build it or design it.
The other issue here is getting the dealer network up to snuff. Many are doing well but some are still lacking.
While in Seattle these other cars are common here in the states away from salt water we see lots of Cadillac. We see the normal Benz and BWM but no Tesla’s.
Give them time yet as there is still a lot of work to do and many more models to bring to market.
Perhaps mary had a say on this. She will continue to clean house to get GM in the direction she wants.
We will continue to see changes like this as time goes on.
This news for the most part is disheartening. This is an opportunity for Cadillac to reinvent themselves while they are clearly on a rebuilding front. This can be a positive in Caddy’s favor I believe they can restructure their current vision for success. I love Cadillac ,but with the recent models they have developed has me a bit skeptical that this is the new GM using smoke and mirrors while still using old GM business practices. For example when the ATS was revealed I believe it’s was a pretty good car but when you get rid of the smoke and mirrors it’s really a shrunken CTS as far as the exterior design goes. The headlights and led’s just seam cheap not something you will find in today’s leading automakers. This was a car that’s been in development for a couple of years and you mean to tell me that this is the final product? I don’t think I have to mention the cue system(gauge cluster). I can go on but I don’t want to sound like I am complaining. I really do hope the flagship is iconic because bland and just putting something together are not going to drive up sales in the industry today.
There are about 900 Cadillac dealers selling just about 2500 of the ATS per month so far in 2014. That’s a little over 2.5 cars per dealer, per month. Translation….Many Caddy dealers are selling 0-1-2 of the ATS every month which is unacceptable especially considering the big incentives this car has. The other part of the story is others in the segment are doing well, BMW is up a good bit and Lexus is doing very well with the new IS. Is also a real shame GM just can’t be honest and say ATS sales are a disappointment? Why the constant denial and “spin” by the likes of Reuss?
Cadillac’s “Art and Science” design was never that cool. The Evoq was the only sexy car that ever came from that design and it’s 16 years old. Also, am I the only one that thinks the new logo looks like a stretched dog nose on the car? It cheapers the brand. In attempt to get younger ppl interested in the car, they dropped the wreath around the logo. How about adding 50 hp to the base model – that would get everyone excited.
I think the problem has to do entirely with pricing. Cadillacs are so expensive, and don’t offer the status that a BMW does. The ATS doesn’t look as expensive as a Q50 or 328. Those cars have more dimension to their styling and better paint. We can buy a malibu with the same engine and interior quality as a base ATS. The CTS is definitely a step in the right direction in every way, but it’s priced out of this world. Cadillac needs to make inroads with the regular folks and trickle up to the luxury market. Alternatively, they need to offer something that nobody else has – like more power or leather even on the base ATS model. And what’s with the weird model lineup?! The XTS is bigger than the CTS, but is cheaper and FWD? The ELR is an embarrassment. Only the Escalade gets respect on the street. Get your act together guys!
Cadillac should become its own entity meaning separate from all of its other divisions. I hate to admit it but nothing about an ATS or CTS says look I am expensive Infiniti’s manages to do this with ease…..
I am glad some here are not in the industry. You guys would be running Cadillac like the Cleveland Cavaliers.
You have two cars of the new Cadillac so far and you only have one model of each. You need to see what the coupes and other variations they have coming will do. We still have a new SRX to come and a hand full of CUV and SUV models along with the LTS in several variations. Also we have a whole new line of V series cars and some surprises,
Before I condemn a meal I at least first get pass the appetizer and finish all the courses. The soup may be ok but the steak is great.
Appreciate your optimism, but the only new Cadillac models or variations that I’m aware of that are definitely coming soon (defined as next 2-3 years) are: V Series for ATS, CTS, the LTS and a new SRX. The Lambda based Cadillac large CUV has been shelved for now and a coupe, convertible or wagon version of the new CTS is a total long shot to make it to production period, let alone anytime “soon”? Surprises? Surprises are great, but the last one of those was the……ELR? If they ever “green light” a production El Miraj? Now thats the kind of surprise that makes people sit up and take notice of the entire brand.
Well you have a ATS coupe this year.
We will get the V series of the ATS and CTS.
At the least a ATS Convertible and possibly a CTS drop top is still in play.
Wagons when they get closer to going to Europe.
Keep in mind this is the company that kept the Z/28 quiet and has yet to leak a drop on the new Gen 6 Camaro so there are many things that you have not heard about inside GM and Cadillac should hold one or two.
A new SRX is on the way.
The LTS sedan is already testing and the coupe is being looked into. There have been issues with hard points on the Omega to do an exact Elmiraj. The wheel base has to change.
I am not sure on this but I may know why the Lambda was killed. Word has been out that Cadillac was looking into a Omega based CUV/SUV as well as a Alpha. These would be a little better to match Benz and BMW in the market than a Lambda so it would make sense. It also would help leverage out the cost of the Omega platform that needs other models to cover the investment as the LTS alone would not do it.
I have heard off and on of a small roadster at some point has been looked at.
The ELR is short term and was never meant to be a high volume car. It was merely a space filler in a segment GM wanted in now not 3 years from now. It cost them little to put the Volt under a already done show car body to buy time.
I expect Cadillac to have a larger all electric sedan much sooner than some expect. Tesla sales have proven a segment is out there and BMW, Cadillac and Benz will all be in it soon.
I expect a very small FWD to appear at some point. BMW ands Benz are moving here and Cadillac will not let this segment by as it will be the entry for future sales for all in this segment.
Anyways did anyone see the Z/28 and the Elmirage coming? No. There are many things we will get surprised about as GM has gone dark and few speak of what is going on anymore. Most of the reliable source’s have dried up and we are left to look for bread crumbs and speculate on what they mean.
the days of showing me a Camaro Show car and then going into production 5 years later are over. The first time you will see many of the new things or even have a clue are when they roll them out on the show floor.
Right now the test driving spy photo’s are only the ones GM want you to see. The Latest LTS photos are on a part of the proving grounds insiders will go when they want to be seen. That was not a mistake on their part.
Also did anyone see the TTV6 V Sport models coming? Nice surprise wasn’t it? Most thought that was the V series and it was just another nice sport model in the line up.
It is not optimism just that I know how GM is working now and we are not seeing all like we used too.
Wow, what an apologist. I feel like I see this a lot — “wait for X years — CADILLAC’S GOIN’ BE GREAT!” Here’s the facts. We waited for the ATS, which was supposed to be the BMW killer. It isn’t. The ELR — placeholder? really? And yet, they’re offering huge rebates — clearly Cadillac thought it was going to sell better. CTS, designed by committee. FWD? When? BMW, Mercedes, et al., are all out NOW.
Cadillac, and GM more generally, really needs to get their act together. Post-bailout, I felt like that they were doing a lot better, but really seems that they’re drifting back to Business as Usual. I’ll give them some slide with the Ignition Fiasco causing them to take their eye off the ball, but the market won’t.
The fact of the matter is, Cadillac is the little guy — BMW and Mercedes (and to a lesser extent, Audi and Lexus) are the Kings of this marketplace. Yes, Cadillac does better than Lincoln. But if they want to compete with the big boys, “just wait till what we have ‘tomorrow’” isn’t going to cut it.
Ultimately, even with hugely popular vehicles like the Escalade, I think Cadillac is short sighted. Even at their relative success level, they should think like Lexus did at Day One. Price your product at a third discount relative to the competition. Then slowly creep up your price to their level. Because, as a West Coast guy, I’ll tell yah, this is an important market, and I’m not seeing many Cadillacs here — except for SRX’s, which *are* affordably priced (and after two old gens, RIP, and two new gens, I think are still not competitive — sadly, after *five* Cadillacs — STS Northstar loaded, two old-gen SRX, two new-gen SRX, I’m in a Benz, which as a native Detroit boy pains me).