Maximum Bob thinks time is on Cadillac’s side in terms of the brand’s renaissance, and feels Cadillac is making the right decisions to position itself as a true game changer. During an interview with CNBC, Lutz points out a few key things on why Cadillac is making the right moves.
First and foremost, the drop in sales was to be expected, says Lutz. While Cadillac readies its onslaught of new product, it is also developing a target marketing and branding strategy for said product. In the mean time, Johan de Nysschen, Cadillac President, has deflected ideas of heavily discounting product, subsidizing leases and other “quick fixes” to keep sales numbers up.
With Cadillac discontinuing nearly all of its fleet sales, which Lutz point out in the interview, it’s no surprise to see contracting sales.
“With a luxury brand in the long term, you don’t want to do supply-push, you want to have demand-pull,” says Lutz to CNBC.
It only makes sense and, as we’ve analyzed in the past, good product with proper branding will create the pull. Lutz believes it will be about two years before we see Cadillac really hit its stride with product and marketing, and only then will the numbers reflect that.
The other important take away from Lutz’s comments are his thoughts on the upcoming CT6, which he states he’s driven. He concurs it is a truly incredible vehicle, with world-class engineering and “will get rave reviews from the automotive press because it is truly an excellent car.”
Have a look at what Lutz has to say down below, and let us know, do you think his points are valid?