Today, Cadillac is in a major state of transition. Reincarnation, even. Though the luxury brand/division introduced some very well-received and class-leading vehicles over the last few years such as the ATS Sedan and ATS Coupe, the CTS sedan, and the all-new 2015 Escalade SUV, sales dropped 6.5 percent in 2014. That drop was in the face of every other GM brand posting gains over 2013, some much more significantly than others. One of the reasons for the lackluster sales performance is believed to be the market’s general lack of awareness of the great new product. That’s why Cadillac marketing chief Uwe Ellinghaus is putting the finishing touches on a new full-scale marketing campaign that will debut during the Oscars on February 22nd.
Plenty rides on these new moves commissioned by Cadillac President Johan de Nysschen. GM CEO Mary Barra, for instance, has put herself on the line by backing the moves despite criticism: “We have a defined plan [for Cadillac], and we are going to stick to it,” Barra said in her new-year statement about GM. “We realize we have work ahead with the brand, but we will stay disciplined. There was a time when Cadillac stood for luxury.”
Meanwhile, Ellinghaus recently told Forbes that “Cadillac does not need a new brand. After all, it cannot distance itself from its 112-year-old history — and we should not. Cadillac is an iconic luxury brand with a heritage that creates authenticity, a unique asset that many other brands would love to have.”
Thankfully, Cadillac has great cars in its lineup today and even more in the pipeline, such as the 2016 CT6 full-size luxury sedan, as well as the high-perforamnce 2016 ATS-V and 2016 CTS-V. But it boils down to a sad, yet realistic truth: great cars don’t just sell themselves. If that were the case, Cadillac would have had a record year in 2014 just on that merit alone. Instead, it’s time for Cadillac to strengthen the brand and make luxury car buyers aware of how great it is to own a Cadillac.
Comments
SRX should have been revealed at the Detroit Show, with shipment in summer. Along with an MKC competitor. Cadillac is *REALLY* dropping the ball. I think GM spends too much time on Buick concepts and Buick low-volume convertibles . . . . the SRX was decent in its time, but is so overdue for an overhaul. And the lack of a compact SUV in this burgeoning segment is just . . . . sad.
Cadillac will never sell in BMW/Mercedes numbers for one big reason that is not their fault, and has nothing to do with how good their cars are-Â they have other brands under the same corporate umbrella to compete with.
Neither BMW, nor M-B, have to worry about this. They have their own exclusive models that can only be had from them. Cadillac doesn’t. So adding cars to their lineup isn’t necessarily going to solve the problem.
If I were interested in an Escalade, I could get most, if not all, of the features in either a Yukon or Tahoe. Ditto the SRX and Terrain and Equinox. Cadillac can only have no lineup-specific vehicles. Anywhere there’s overlap allows comparison to be made with GMC, Buick, or Chevy.
The answer lies in not blindly chasing volume.Toyota did that and look where they ended up. VW is currently doing it and look at them. Hell, GM THEMSELVES tried this, and look what the result was. Have they learned nothing?
Cadillac needs to focus on making vehicles that are better than the competition from both a fundamental standpoint, AND a driving dynamics one. Having an edge in handling and steering isn’t going to overcome inferior powertrains, technology, refinement, ergonomics, room/comfort, etc. It has to be a total package.
If they do that, so long as the brand is profitable, they succeeded. Let the products speak for themselves. When you don’t worry about sales, and focus on the product, the sales will come. And even if they don’t, being #1 in sales doesn’t prove anything. It’s not the end-all of the discussion.
It may not be a popular opinion, but Cadillac still has PLENTY of room for improvement. If they continue to do so, everything else will fall into place. It’s not going to change overnight. The car industry is fickle. It’s all to easy to destroy overnight what you spent decades establishing. GM should have known that and never let themselves get into the predicament they did in the first place. They ultimately have nobody to blame but themselves. They slipped up, and they’re paying the price. All they can do is keep on keeping on. Â Â
“they have other brands under the same corporate umbrella to compete with.
Neither BMW, nor M-B, have to worry about this.”
Incorrect.
BMW AG has BMW and Mini automotive brands. In fact, the UKL platform underpins both cars in the Mini range and the BMW 2-AT.
Daimler AG has Mercedes and Smart automotive brands.
While the overlap isn’t immediately apparent, it does exist, and it can pose operational complications.