In 2013, Cadillac sold 250,830 vehicles, way less than the seven-figure numbers enjoyed by BMW, Audi, and Mercedes-Benz. Newly-appointed Cadillac President Johan de Nysschen hopes to double Cadillac sales by 2020 via an aggressive product offensive and an improved dealer experience, he revealed during the Barclays Global Automotive Conference.
de Nysschen showed conference attendees a slide of 12 different Cadillac models covering a wide range of segments. According to The Detroit News, these included a small luxury car, a convertible, a compact and midsize car, two other compact/mid-size cars, a small SUV, a compact SUV, two midsize luxury SUVs, and the Escalade.
Cadillac is hoping a portfolio expansion will help it sell 500,000 units annually by 2020. de Nysschen did, however, recognize that sales could stay flat for the next three years or so, as the company ensures incentives stay down in an attempt to keep average transaction prices high. Though October 2014, Cadillac sales are down 4.6 percent in the U.S.
“We’re really going to prioritize the quality of business over the quantity of the business,” de Nysschen said. “It’s very important that we build a solid foundation from which to grow. And if it means in the short-term we lose market share and we lose volume, then so be it.”
Also crucial to growing sales is a revamp of the dealer experience. Many Cadillac dealers aren’t used to treating customers the way a BMW, Mercedes-Benz, or Audi dealer might. To remedy this, de Nysschen is “reorganizing” the dealer network and working on a plan to build “boutique stores.” A new “performance driven” dealer model will also reward stores with new sales bonuses.
Comments
“And if it means in the short-term we lose market share and we lose volume, then so be it.”
Cadillac is about to hit a brick wall. When you are nearly irrelevant, you don’t have pricing power. After bankruptcy, perceived status and your brand needs to be rebuilt. You need to earn your stripes. And at equal dollar, the dealer experience is abysmal with a salesman moving from a Sonic to Cadillac with the same nauseating canned presentation. The real question is, for equal money, will the young successful professional select an Audi, BMW, Tesla or a Cady with a soured image from a troubled company?
“Cadillac is about to hit a brick wall”.
Exaggerate much?
Has Cadillac hit a brick wall already? No, it hasn’t. Sure, sales are down a bit, but not to the point that you’re describing.
In reality, here’s what has happened:
1. All publications who have experienced the new ATS and CTS absolutely love them.
2. Sales have decreased slightly, most likely because of a) price parity and b) a lineup that’s not wide enough (yet), and c) an image that’s not as strong as the competition. B and C are being addressed and will take a bit of time, but they will get there. Once B and C “get there”, then A will follow.
So, Cadillac will continue to win new buyers based on product. It might see a slight drop in sales, but it will be worth it, since the alternative is to become the “put as much cash on the hood as possible to move the metal” of the industry… aka RAM. That strategy gets you sales volume, at the expense of buyer loyalty.
“The real question is, for equal money, will the young successful professional select an Audi, BMW, Tesla or a Cady with a soured image from a troubled company?”
1. Yes, I would.
2. It’s only “a sourced image from a troubled company” if you know/follow the industry. Most people don’t know Cadillac is a GM product.
You really are clueless are you not.
GM is not going to beat any of them in sales in the next 5 years but they will be gaining ground with the increase of new product.
The Bail Out has little effect and for most is forgotten.
The one area they do need to work on is marketing as it is truly abysmal.
The reality is Benz has stated they are watching Cadillac as they know with the proper products and given the proper time and funding GM is one that can challenge them. Their greatest worry was if GM was willing to commit to do the right things like their own engines for Cadillac and remove them more from the other lines. Well these things and others have been realized.
Cadillac doesn’t need a portfolio like Mercedes has . Price for the typical shopper of the brand doesn’t really matter . But to capture the 30+ crowd the price does matter . Really all they are buying is the logo on the front grill . The bragging rights of look at what I can afford , Just because a Caddy might cost close to an An Audi or BMW does not mean it will compete . Getting the word out there in the public eye might mean you build something that middle ACCmerica can afford and word of mouth will help sales and when there lease is up they may move up in the product line , Also advertising plays a big role . The coolest commercial lately is from Jaquar . That is what Caddy needs is something like that .
“Getting the word out there in the public eye might mean you build something that middle ACCmerica can afford and word of mouth will help sales and when there lease is up they may move up in the product line”
Cadillac is not a car for middle America, period.
Cadillac’s products, like other more established luxury automakers, are for the top 10%, those with the disposable income to fulfill the description of the phrase ‘conspicuous consumption’.
In the 30+ crowd, if they are luxury consumers, don’t care about price. In fact, you’re not a luxury consumer if you worry about price. Irrespective of the owners age, if they demand something special or exclusive, they will seek it out and obtain it. Whether its a CLA or an S-class coupe, a luxury product must captivates and emotionally compels someone to own the product; price notwithstanding.
And it’s not just cars for luxury consumers. It’s a lifestyle of only using things that exclusive and not ordinary.
The days of Cadillac being a second-tier runt like it was from the 1950’s through to 2002 are long gone. Cadillac is starting the long climb up the ladder of respectability, the same kind of respectability and reverence that Cadillac rightfully earned back during the 20’s on up until the war; that fabled ‘Standard of the World’.
I just leased a fully loaded 2014 ATS Sedan (V6 Option) and it is a beautiful vehicle. The current lease was just $25. more a month than what they were asking me at local Nissan Dealer for a fully loaded Altima or Maxima.
I just saw that they are upgrading the 2016 ATS with a twin turbo 455 hp and I have already informed my new Sales Consultant at Englewood Cliffs Cadillac that I want that new muscle ATS. Customer experience at Englewood Cliffs Cadillac was awesome, they made us feel like family.
I’ve always purchased Chevy’s, so time will tell how I feel about Cadillac.
The haters just keep on hating.
The number here is very doable with the increase of product and the volume we will see with the new CUV and SUV models. The imports are not selling more cars but they are selling many more CUV and SUV models. Just look at Porsche, BMW and Benz and how many SUV models they are pedaling per year.
GM should do real well there as they know that segment as well as anyone and given the right development into the performance segment they should do just fine.
Just look at the Saab 7 and the Trailblazer SS they did just buy fixing a older platform. Now move forward to a clean sheet of paper and the proper funding and a selling point that lets them build a complete package for once. They should do very well.