This article is part of the GM Authority Mailbag series, where the GM Authority Crew features and replies to your questions, comments, and observations.
The following comes to us from Jane R., who owns a Cadillac XTS:
I own the XTS and I dearly love it! I would hate to see Cadillac discontinue it. This is the best car on the market, luxurious, the size is perfect, and sporty at the same time. The larger Cadillacs will only appeal to the old generation. Before I bought the XTS, I drove Mercedes S class, BMW 7 series and Jaguar, these cars did not touch the XTS.
Jane, first of all, thank you for the note. It’s great to hear that you’re thoroughly enjoying the XTS.
But we’d have to disagree with your desire for Cadillac to not discontinue the XTS. Here’s why.
The World Beyond The XTS Is Better
One of the reasons is that there are significantly better cars than the XTS on the market, Cadillac’s CTS being one of them. But even more importantly, perhaps, is the fact that the upcoming Cadillac CT6 full-size luxury sedan will be better than the XTS in every single way:
- Driving dynamics? They will be significantly better on the CT6 thanks to its properly-balanced (read: rear-drive) configuration, leading to what we image will be perfect 50/50 weight balance
- Technology? It will be much more sophisticated on the CT6, including self-parking and autonomous driving ability as well as a rethought CUE infotainment system
- Comfort and convenience? The CT6 will be much more progressive in this area, including better ride and handling characteristics thanks to a balanced layout, but also thanks to such new features as massaging seats
- Design? Though subjective,the CT6 will look better than the XTS, having a presence that the XTS simply can’t match because of the transverse-engine/front-wheel-drive configuration.
These go on and on, but the takeaway is that any feature, quality, or attribute you enjoy on the XTS will be taken further and made better on the CT6. In fact, the new Cadillac flagship will also possess all of the elements you like about your XTS, including luxury, size, sportiness, and more.
That said, we’re curious as to why you liked the XTS more than the 7 Series and S-Class. Outside of the fact that they cost over twice as much as the XTS and are engineered to that degree as well, these vehicles are truly amazing machines, whether driven in a mall parking lot or at triple-digit speeds. The CT6, in fact, is being engineered to beat the BMW and Mercedes at their own game. So we have to ask, were the BMW and Benz that you drove made within the last ten years, or were they much older pre-owned units?
(Not So) Old Generation
We’re not so sure that “larger Cadillacs will only appeal to the old generation” is true. From that statement, we take it that you don’t consider yourself to be part of “the old generation”, whatever that might be. The irony in that, however, is that you already own a large Cadillac, since the XTS is nothing short of full-size. In that regard, we’re certain that if you like the XTS, and you don’t think of yourself as “old”, then you will also like the CT6.
Speaking of age, the segment in which the CT6 will compete in includes the BMW 7 Series, Mercedes-Benz S-Class, Lexus LS, and Audi A8/S8. All of these vehicles are roughly priced in the $100,000 range, which is quite expensive for a vehicle. So it would only make sense that those who buy them are more wealthy. Is it any surprise, then, that those who have more money are older, and can thus afford the more expensive vehicles offered in this class?
Halo Cars For The Win
More importantly, however, is the fact that all of those vehicles serve as the ultimate expression of each automaker’s expertise and proficiency at making luxury automobiles. As such, these models are highly important for brand image. By comparison, how much has the XTS done for Cadillac’s perception? We’d be the first to say that the answer to that is not much, if anything at all.
So, as we approach the launch of the 2016 Cadillac CT6, we probably also get closer and closer to the discontinuation of the XTS — something we were first to predict when the vehicle first launched. But we welcome this move, since the CT6 will finally give Cadillac a true full-size flagship sedan, one that will do everything that the XTS does, but significantly better. Seriously, you should truly try it out when it launches later in 2015. But if, after trying one out, you still want to buy a new full-size front-wheel drive luxury sedan, there’s always the Buick LaCrosse on which the XTS is based. No matter what, you still win as a consumer because you will have one more awesome vehicle to choose from.
Comments
You guys are forgetting the fact that the XTS is a big player in the livery market. I highly doubt that Cadillac would want their new CT6 turned into a hearse. Therefore, it makes sense to keep the XTS around, as long as its name and badge are changed.
Don’t think we’re talking about the livery market here. But even if we are, is the XTS a large player? How many XTSes get sold into the livery market every month? How many 7 Series and S-Classes go into this market? The numbers are more alike, despite the Caddy being much less expensive.
More importantly, is this a market that Cadillac even wants to serve, or does it have negative image-related consequences? Perhaps the livery market is best served by a Chevy (say, an Impala) or a Buick (say, a LaCrosse)… and if not, they can always buy the CT6 as well.
I welcome the CT6 but a lot of people don’t give the XTS any credit and it is a very good car. It is far from a flagship but it does serves its purpose for as sales are concerned.
The S Class, 7 Series and etc may be superior than the XTS but lets face it. People will compare cars no matter what regardless of price and there is nothing automakers or car enthusiast do anything about it. It is your own money and go out and buy regardless if it competes directly or not and the car far exceeds her expectations probably is no reason for us to judge.
The XTS has a fantastic interior/exterior, large and comfortable and drives well for its size. Although it is on somewhat less than spectacular platform, it is still a very good car for what it is. I see plenty of these on the streets especially the Platinum models
How about the fact that the XTS is about 20 grand cheaper then what we are hearing the CT6 will be. Even though to this owner that would not matter if she was indeed buying new S-class and BMWs. I have been saying all along that the XTS is dead but with Cadillac trademarked CT2 to 9 i feel maybe the CT5 would be a XTS replacement.
Last August, I sold my Uncle his fifth or sixth Cadillac, a 2014 XTS4 in Gold Coast, after him having DTS’s and Devilles. He briefly defected to a BMW 7 Series that he bought used when the DTS replacement was not available yet. It was the first time I had sold an option-rich 55,000 car and had to apologize for what it did not have in comparison to the 7 (Twin Turbo V8, rear footrests etc) I thought he was reasonably happy until two days ago when he showed up at the dealership with numerous colorful lights illuminating the dashboard, which had been happening intermittently, but couldn’t of course be duplicated in previous service visits. Turns out, the rear differential had been “mixing fluids”, meaning light and heavy, and will have to be replaced, and I will be relegated to the kiddie table at Easter Dinner this year, even though I didn’t produce the car. I can see him going back to BMW or Mercedes after this and his long relationship with Cadillac–Sad!
All cars break. Especially the german ones. Please remind your uncle that’s the reason why foreign dealerships have service departments.
Maybe I am reading this wrong but the XTS does not have a rear diff.
I think he means the AWD system in general.
XTS is a great car. Especially for the money.
My father has a ’13 that I’ve driven many times.
It’s biggest problem is that it’s too narrow. It could use another 2-4″ of width between the passengers.
It’s remaining problems are: 1) CUE that is incomprehensible to an iPod, iPhone, iMac using octogenarian; and, 2) lack of V8 power.
His previous car was an ’01 Deville and my summer car is an ’08 DTS.
CUE is not as appealing as Cadillac thinks it is. Hopefully it will be abandoned on the CT6.
In N.Y.C. the livery limo of choice is a Cadillac Escalade not an XTS. As for hearses I’m sure the Cadillac division will be just fine without that market. Let Ford or Chrysler have it with the less sophisticated Lincoln MKS or Chrysler 300. When BMW and Mercedes build and market their products the livery and mortuary business is not high on their “bucket” list.
There are Mercedes, BMW, and Audi taxi’s, police cars, and delivery vehicles in Europe. They’re cars are not as expensive in Europe either. They charge more here because they can. The European countries buy they’re own products; especially in Germany. I wish we had the same attitude.
In my country, Spain; Mercedes is selling a model of A class riding a French Renault engine, and sell much, that people do not care about that, do not buy car; buy brand
Ferrari has never needed to advertise on TV to sell, your buyers do not buy cars, buy brand
BMW and Mercedes sell many cars that have won brand image, wants people buying brand, no car
Cadillac now has wonderful cars, but not has something important; brand image.
That’s what Cadillac should and must recover, brand image, after this car dealerships alone will not help
It is starting to get that image by brand well, let’s give time for GM
Not everyone wants or desires a RWD 100k luxo barge that has a tight and sporty ride, even though they can afford it. Yes, even people like Warren Buffett own the XTS. There is a market for an XTS vehicle in the N.A. This is what it does that the S and 7 series cannot do as well: drive in luxury straight down the highway and 70 MPH, easy to drive, soft over bumps and pot holes, and have a huge trunk.
Selling a slightly larger and much nicer Impala should be worth 10k per unit profits at 25k to 35k units per year sounds like a good invest for GM to me.
“Before I bought the XTS, I drove Mercedes S class, BMW 7 series and Jaguar, these cars did not touch the XTS.”
What the hell is Jane smoking?
I think the XTS works for people that miss the big Cadillacs . It was never ment to go head to head with the more expensive german cars . It was just a car to fill the hole created by the demise if the DTS . When it first came out most people liked it , it was a completely different vehicle than the tired DTS . And now the face of Cadillac has changed , the XTS looks out of place next to the ATS and CTS . Even the popular SRX with a similar front end to the XTS looks old now . People are going to buy what they feel comfortable in and don’t want a SUV . The sad thing is if you took an S-Class and removed the three pointed star and replaced it with a Cadillac shield I would be willing to bet peoplle in that price point wouldn’t give that car a second look . As was written earlier , Cadillac needs to get their ” prestige ” back . The new Caddys are great cars so the product is out there so now how do you educate the top luxury car buyers that there is nothing to be ashamed of driving a Cadillac .
Just a car to fill the void left by the DTS, eh? In other words, a stop gap, as was written here in 2011:
http://gmauthority.com/blog/2011/09/opinion-desk-cadillac-xts-is-a-stop-gap-vehicle-for-dts-buyers-true-caddy-flagship/
It’s a good car. Just not where Cadillac is going.
As for changing cadillac’s image, that will take years of excellent product, excellent customer service and great marketing. But it all starts with the best in class cars. Like the CT6. Not like the XTS.
I don’t see why they should discontinue the XTS either. It is a niche car that fills the void for people (probably mostly older) who want a large luxurious car and have no intention of taking it on twisty back roads, want something nicer than an Avalon or Buick, and dont want to pay S Class money. Also its based off of 2 other cars in GMs lineup so its not like they are wasting too much R&D. Not to mention I see way more of them on the road than my ATS… Keep it and the Halo car and everyone is happy. Seems like easy money to me. Though Id personally never own one. I recognize everyone doesn’t have my priorities. Just my two cents.
I’m gonna have to agree on the XTS remaining (or something similar in a Caddy badge). I’ll never mKe enough to be in Cadillac’s market, but I grew up in a very affluent enclave outside Seattle. A bit of more background- old money and new money seem to have their own communities. Not a scientific observation. Just what I’ve noticed.
ANYWAYS….
I noticed over here that there seems to be a lot more XTS than CTS (current or prior generation), and I have yet to see an ATS anywhere except dealer’s lots. So I asked my friends, as well as a local dealership I used to work at what they’ve noticed.
They’ve observed that old money, as well as typical Acura/Lexus/Infinity (and for that matter Toyota- are we that surprised) buyers really gravitate to the XTS. It’s quiet, feels extremely well put together, soft, and they feel like “they are getting a deal”. One buddy surprised me by saying a few customers admitted they “would rather have the old Northstar V8″, even though it was less powerful, than the 3.6 V6.” Why? “It just sounded better, and they could say it was a V8.”
Then I asked where the younger people, or new money is flocking to. CTS? ATS? Nope. “While the CTS is actually getting some conquest buyers out of BMW and Mercedes because to them Cadillac has a better perceived customer service and reliability, here, if you are younger, you go for the LaCrosse or the Regal.” Apparently the Enclave grabbed a new generation of buyers, specifically for its looks, and the families then would come back for another Buick. Also, the frequent JD Power and Consumer Reports crowd here tend to be younger, and Buick is doing very well there. Lastly- they all seemed to agree that Intellilink was by far more favored than Cue. Cue was turning people off to Cadillac.
Again, I’m not saying any of this is more than hearsay and observation. Still, it begs the question- Are you guys noticing similar patterns out there? Is there any actual data backing some of the observations out there? It’ll break my heart to see two fantastic vehicles such as the CTS and ATS get passed over for the XTS or some import. Yet I gotta admit it’s a really cool sign seeing Buick come into its own and dropping that average age.
Last tidbit- many of those buying Buicks here are the Chinese. This makes sense as Buick is a prestige brand in China. Not only do we have some of the largest Chinese populations in America here, but those that are coming here have money. They are buying what they know.
Perhaps the days of the front-wheel drive luxury and near-luxury cars are not yet dead. Certainly not for this area. Anyways, thanks guys. Sorry this was so long! I love reading all of your opinions on here!
the XTS would be a entry-level caddy and the CT6 would be the flagship till the CT8 come along….that would give Buick more room to grow…that giving Buick a true RWD flagship….by than.. the lacrosse and XTS… will not be flagships cars anymore.
I am always amazed at the hype of competing with BMW or Mercedes. Those companies make so many different and unique versions, I cannot see the logic in trying to mimic their lineup and compete head to head. Cadillac’s strong point is in the interior design and ambient lighting design. To me – as good as a BMW might be, its austere interior leaves me yawning.
The second mistake is trying to compete with 0-60 times and other racing capabilities. The USA is a different car culture than Europe; we have interstates for driving w/o borders and we don’t have the Autobahn. So where is one to use all the horsepower being emphasized?
I have an XTS Premium. I love its ride and the CTS cannot compete with that. I had several CTS’s.
The bottom line is to keep costs reasonable with the lowering costs of new technology that even the $25K cars have today.
What made the 2nd GEN CTS as popular as it was, was that the average car buyer could now own a Cadillac for under $40K.
As a former owner of an 13 xts I traded back to a great 10 dts due to leaking magnetic shocks at 22k cue system failure at 35k no recourse for $1150.00 cue replacement I like my caddys but g m take care of the buyers not just your stockholders or you won’t have any customer’s licenses