The 2015 Cadillac ATS and CTS are two examples of some of the most dynamic luxury sedans on the market today. One would think that because of this, the market would respond to the products in kind. Sadly, it hasn’t been so.
Road and Track even made it a point to mention them in their recent list of the “10 Best Cars Nobody Buys.”
While the pair of Cadillacs have their downsides, such as the current CUE interface and lack of appeal in their gauge clusters, they are far from disappointing. As R&T points out, it’s no easy feat to “out-BMW a BMW.” Though largely, the suspicion causing the lack of sales has been that the longstanding Cadillac customers feel alienated from the brand’s current direction of sportiness and heightened pricing. Meanwhile, current German brand customers seem pretty happy.
Perhaps showroom foot traffic and interest in the Cadillac ATS and CTS will increase with the launch of both the ATS-V and CTS-V. It’s not like the American duo isn’t deserving of it.
Comments
Proof it is easier to build a great car vs. a great image.
They are now setting to work on the image and you can not design one or buy one but you can build it with time and smart marketing. Sadly they just started that a month or so ago.
But then again you can not build a great image till you have the product either in this segment.
The ATS is indeed a great drivers car, as good, or better than anything else in the segment, from a handling perspective. The problem is, they benchmarked the BMW E46, widely considered as the best 3 series iteration ever.The problem with that, tho, is that the E46 is several generations ago, and it is small, when compared to what customers are demanding these days. Modern North American luxury buyers are primarily fat people,and stuff like rear seat leg room is a huge problem with the ATS. Also, most of the ATS R&D money was spent on making the car the drivers car it is, and maybe enough attention was not paid to making the interior as premium as it should be. Again, a great car for enthusiast, but enthusiast does not buy enough luxury cars, hence the much larger and softer 3 series and C class continue to dominate, sales wise.
The ATS and CTS provide a great building block on which to go forward and improve further.
I agree that the ATS and CTS can be a bit more “premium” than they are inside. They’re little things that can be addressed with mid cycle enhancements.
But I do not agree about rear-seat legroom: when you delve into purchase considerations, it’s not in the top 10. However, it is an “influencer”. So if a shopper is considering an ATS and a 3 Series, and likes the 3 Series because of aspect 1 or 2, he will say “ah, heck… I like aspect 1 or 2 on the BMW, PLUS it has more rear seat room. I’m going with the Bimmer.”
That said, the biggest problem Cadillac has is image. Let’s remember how “non-premium” BMWs were through the 90s and early 2000s. Plastic, chintzy interiors, lackluster materials, etc. BMW built the brand on being the driver’s car, and has only recently started putting more focus on luxury/premium feel. Cadillac can also build itself on being an even better driver’s car, while focusing on the luxury/premium element.
You know Scott3, I got a lot of Negativity when I said this but gonna say it again, if you don’t tell the people what the hell you doing, as in Real Advertising, your done!!! If you have something to sell to a mass of buyers do you just sit in your room and keep it to yourself??? That’s what that Marketing Guy at Cadillac is doing, talking BLAH, BLAH, BLAH to different media outlets but keeping the buyers in the Dark, if one thinks that Advertising don’t work, then you will go Broke Period!! Case in Point, Cadillac’s deteriorating sales of these Crazy Magnificent Vehicles, I see commercials from Every Manufacturer like over and over again talking everything from Interior Luxury, Exterior, How Assembled, Technology and Driving characteristics, the majority that Cadillac Pioneered, even Chevy is doing an Awesome job, but Cadillac is like a Phantom in the Mist, and just expect people to just Drop out of the Skies to be interested in their products, Really!!! Stop it with the “longstanding Cadillac customers feeling alienated”, CUE, Gauge Cluster and the CT6 (Which I Love) to the rescue excuse already and get the New Customers in the House and let them get a taste of what Greatness is…..And they do need to Fix The Leases. OK, some will say “Cadillac is getting customers in the House with the Escalades”, News Flash, Escalade customers by Escaldes Period Baby and that’s because of the Tremendous History built over the years (16 yrs), so you got the Great Cars and a Great start to your new Image, but if you’re not telling the Masses through Advertising and even those Killer Ride & Drives that use to go around the Country, you ain’t got Sh*t!!! 😉
Well, that’s the thing @jbisrite: Cadillac only started working on a true, real, solid marketing campaign 1-2 months ago. We still have yet to see it because it’s not ready yet. Hopefully it will be ready within a few months and will dominate all kinds of mediums (TV, radio, web, social media, etc.).
Agreed about ride and drives. Simply can’t show the greatness of the ATS, CTS, or upcoming CT6 with dealership test drives. Need to pit these cars in a controlled yet fun environment and let shoppers experience it for themselves.
I hope so CE, but they need to Ratchet that plan up to 1 month cause it’s Blasphemy to have Great Cars growing Roots!! 😉
Out-BMW a BMW? Why can’t they focus on something else than the most overrated brand on the planet? Going against Mercedes, now that would be something.
And hey, maybe it’s also related to the touch-only smudge-prone control panel.
You can pretty much replace BMW with Mercedes-Benz or Audi in that sentence.
The point is to make a better car than the Germans. And by far and large, Cadillac has done so with the ATS, CTS, and — from what it looks like — the CT6.
I’m not sure what to make of it, but I found myself wondering why the PR shot of de Nysschen and Ammann at the Geneva Motor Show has them in the BMW display, with a big BMW Roundel on the wall between them.
Just out of curiosity, I looked at the map of the Motor Show display areas, and Cadillac/GM is at the far, opposite corner of the Show Salon. Sort of makes you wonder how genuine their dismissiveness of BMW is.
Or maybe they were there to gloat. I just thought it was interesting…
I agree that Audi is overrated like hell as well, but M-B really do make some awesome cars.
See, I just don’t like this focus on BMW. Every time I hear something about Cadillac nowadays, there’s a mention of BMW. 🙁
“…nobody buys” ?
Perhaps headlines that do not exaggerate sales figures will increase showroom foot traffic and interest in the Cadillac ATS and CTS.
Well, it’s true people actually buy them.
But when ATS is down 31% in March, and CTS is down 48% in March, maybe
‘Sadly, fewer and fewer people are buying them’ might be a more accurate headline.
They’re good cars – I still can’t see mgt being patient enough to wait 5 years for a turnaround, though. And justifying $12b to pump into the GM brand that sells the fewest among their four marques…Guess time will tell.
Sells the fewest, but makes the most per unit as well. Let’s not lose sight of that.
The new GM management team, for the most part, has patience. Products like the CT6 are proof in the pudding. Hopefully, future products like a fleet of new crossovers, will be as well.
Though it doesn’t seem it, there is still upside for Cadillac right now. Specifically, sales are up globally (thank to China), there is tons of opportunity to expand into other international markets (Europe, South America, Australia, etc.), and there is still tons of new product on the way that will be class-leading (perhaps the SRX replacement not withstanding).
The U.S. market will take some work, since like scott said, image needs to change.
Did anyone at Cadillac actually ask the potential customer why they chose the other brands? There is a lot of speculation here but the only way to get the real truth is to a ask the people who brought your competition why the didn’t choose your Vehicle. I know there will be a lot of different reasons but somewhere in there you will perhaps they can pinpoint enough information to make changes so that these customers will choose them next time. Hopefully they can convince those who are fence sitting to come over to their side also. This will take time but all good things take time.
Very True, they did it in China with the ATS-L, so what happened to America??? 😉
@VCAT, there are many research programs in to this. But it mostly still comes down to brand image. It’s not “cool” or “hip” yet to drive a Caddy vs. a BMW, Benz, or Audi.
@jbisrite there is no market for a vehicle such as the ATS-L in America. There is in China because of the way in which wealthy people consumer cars (they get driven around instead of drive themselves). Now, would the ATS benefit from having a slightly roomier rear seat? Sure. But it is not in the top 10 consideration factors of buyers in the segment.
What are the top 10 consideration factors of buyers in this segment?
The problem with image is that no one who isn’t a cadillac expert knows the difference between an ABC from a XYZ. You want some one to be attracted to your excellent car – give it a name useful in revealing its excellent qualities. Then use your marketing dollars to educate the public.
So do people know the difference between a 1, 2, 3, 4, 5, 6, 7 series? Do they know the difference between a C, E, S, CLS, GLK, GLA, CLA, ML, GL, SL, or SLK? Are these “useful in revealing its excellent qualities”?
Yes, people know the difference. Not experts, but normal people.
What you should consider is that every single one of these brands has had its respective naming structure in place for decades. Meanwhile, the Cadillac naming scheme is new (ATS, CTS) and brand new (CT6, etc.).
Point is, it takes time for the public to catch on and to understand. Educating the public helps, but nothing helps as much as time.
I really don’t think they do – at least people that BMW or Benz is trying to attract as new buyers. I think you’re so steeped in car culture that you take it for granted that the average Joe understands the lingo.
If Cadillac wants to spend the time trying to educate people on their lingo while fine cars are sitting on the lot, fine. There was a reason we named cars creatively at one time, instead of trying to emulate other car companies.
The numbers are the only thing that differentiates one Cadillac from another. Every average Joe and Mary, even if they aren’t car enthusiasts or understands ‘car culture’, can understand the “lingo”.
The CT# nomenclature isn’t complicated. The larger the number, the physically larger and more expensive the car. Brain dead simple.
The new nomenclature is only complicated if you think the name “Eldorado” is more important and has more clout than the name “Cadillac”. If you think so, then you would have no qualms saying Eldorado in place of the word Cadillac.
“The Eldorado of mahogany furniture”
“The Eldorado of single malt scotches”
“The Eldorado of period architecture”
“The Eldorado of chronographs”
It simply doesn’t work to Cadillac’s favour to insist on diminishing its own name in favour of substandard products with an substandard public image.
Tell people you drive an Eldorado, and they’ll look at and treat you differently than if you just told them you drive a Cadillac. Cadillac, in this case, should be seen as a mark of distinction, something to pride yourself on as the marque evolves over time to establish and present to the world what it means to build the best luxury vehicles. In turn, it says of you, the owner of a Cadillac, are on the very cutting edge.
Tell people you drive an Eldorado, and they’ll see images of staid and lackluster cars from the 70’s and 90’s with landau roofs and wire hubcaps. You don’t impress people by admitting you drive an Eldorado. You repulse them. They close doors on you and leave you to reminisce about Cadillac’s from the past.
To readmit the old names into Cadillac would be a public admission of failure; that the names that nobody under 30 knows of are the strongest card Cadillac can play.
Sticking to that tired bullshit story of “trying to out German the Germans” is a massive cop-out. You can’t “out German” anyone when someone admits that the best luxury cars America can offer the world HAVE TO bear the names of cars that were grossly uncompetitive in their production run, and have been out of production for over a decade.
Lincoln MAY try it, but again, that’s the strongest card Lincoln can play; when the Continental name outweighs it’s own. That is depressing.
Nevertheless, the Cadillac brand name is far far more important than ANY of Cadillac’s model names, past present and future. The Cadillac name has to stand on its own on the virtue of it’s strengths. It’s strengths are not built on model names that languished and died in the marketplace of competition, but on the merits and qualities of superior products that the brand offers to the world.
A bit pricey even for their segment, and long running, ineffectual public relations. Not enough people realize how competitive these vehicles have actually become in recent years. Perhaps the new outreach efforts will eventually bear fruit, but this may take several years.
“a bit pricey even for their segment”
That’s not really correct. Go price an ATS or a CTS against a 3 or 5 Series. Look closely at the equipment you get with the Caddy vs. the Bimmer. The Caddy comes in a couple thousand less than the BMW with more equipment.
Chris, that’s true, but the difference is tiny and Cadillac is still really the new kid on the block in this segment. And that’s only if you very carefully option each car the same. In addition, Cadillac is still missing a few luxury items that the competition has, as noted in other stories recently.
Until Caddy starts getting the sales, they need be the value leader, by a substantial margin.
“Until Caddy starts getting the sales, they need be the value leader, by a substantial margin.”
But luxury is not a value proposition and never will be. You’re paying for something that isn’t ordinary and you’re getting it for your own personal satisfaction. The consumer has sifted through countless other cars and knows what their strengths and weaknesses are. They know what they want and don’t want to be let down with cut-rate copy.
Being $30K off the pace of similar cars suggests that there is $30K LESS spent on engineering and craft. That corners were cut, and that everything was done to shift units so that the big-wigs at the automaker get sneer at their crosstown rivals at the end of the year.
When you’re trying to cater to people very discriminating tastes, the “value for money” metric is meaningless because that isn’t the deciding factor in their selection. It’s the qualities and feature of the product; it’s craftwork, design and engineering, that coalesces and distill into a single unmutilated and original work.
On the balance of all this is the outcome of public expectations. Cadillac CANNOT be that luxury automaker that everyone expects to price their cars $30K less that what the segment can bear. When Cadillac earns the place in the public eye and offers a car for $250K, there shouldn’t be a single person who should think that it needs to be more affordable. A $250K bespoke Cadillac is going to be for the wealthy, as Cadillacs target market should be. Generally, the wealthy have the means to live comfortably, and its Cadillac’s job to court them with exceptional products.
Cadillac is not the great equalizer of the people, that’s not it’s mandate. Does it seem like a rich vs. poor dichotomy? Yes, and it’s unfair to the great many of us. But it doesn’t matter what it is that’s being offered. If it’s something exceptional and well designed, it’s going to be rare or difficult to obtain.
That, principally, is the very definition of a luxury product. Something beautiful that makes you want it no matter the costs.
They’re pricing their cars too close to the Germans for lack of sporting brand recognition. They need to do more what Hyundai did with the Genesis, make the ATS & CTS similar enough to the competition, but at a price point low enough that new customers feel they are getting a steal. They might not need to go Hyundai low with the pricing, but closer to what they did before. If they kept the CTS pricing closer to what the older generations were, they’d be in better shape. Residual value of the CTS doesn’t help either.
Also, the lack of a folding rear seat in most of the lower trims was a complete killer for getting the ATS when I test drove one. The trunk is tiny, and the vehicle has basically no utility without it. The Regal I drove had them, as well as a full size spare. It obviously didn’t drive as well as the ATS, but I was pleasantly surprised with it. The only reason I didn’t end up buying one of those is I live in snow country, and for whatever reason the dealers in my area seem to only stock FWD Regals.
Keith, they are already doing this.
Like I mentioned earlier in this thread, you should price an ATS or a CTS against a 3 or 5 Series. Look closely at the equipment you get with the Caddy vs. the Bimmer. The Caddy comes in a couple thousand less than the BMW with more equipment and more features.
Other things, like the lack of rear-folding seats, is a no-brainer. BMW and Benz have these optional, but Cadillac can be different here by offering them as standard equipment. By contrast, no compact German vehicle (3 series, C-Class, or A4) has a rear-seat pass-through in the armrest. Guess what? The Cadillac ATS does.
With the ATS I tried, the base model I believe, it didn’t have the pass through rear arm rest. The next trim up did, the one after that had the folding rear seats. I would have needed to pay a lot more for other bells and whistles I didn’t need. I think they would have a lot of success if they tried marketing the ATS as something a bit more upscale and refined than a WRX, but not as expensive or as pretentious as BMW or Mercedes.
I think part of the problem here is that while they’ve built great cars, they are targeted at loyal owners of brands that also build great cars. While it’s true that luxury buyers are fickle and not that brand loyal overall, there needs to be an incentive to get them to consider the switch. Targeted competitive owner cash would be a good start. Perception is going to be hard to change, resale, residuals and payments, perceived value, etc. are still important, even to those shopping in this price segment.
Exactly, Chris! I though the same when I wrote about this very issue here:
http://gmauthority.com/blog/2015/02/cadillac-must-offer-targeted-incentives-to-conquest-bmw-mercedes-benz-audi-lexus-owners-opinion/
“I think part of the problem here is that while they’ve built great cars, they are targeted at loyal owners of brands that also build great cars. While it’s true that luxury buyers are fickle and not that brand loyal overall, there needs to be an incentive to get them to consider the switch.”
^ WINNER! ^
The incentives to switch, however, are the tricky ones. When I hear incentives I’ve almost conditioned myself to think of the “cash on the hood” kind of approach, but that’s not something Cadillac needs at the expensive of their resales values. I’ve always felt leasing options from Cadillac were quite weak, although I don’t think fixing that would solve all of Cadillacs problems.
When will arrive crossovers, sales will rise muuuuuuuch.
Cadillac disadvantage playing in a range that is not complete, we play the new cars coming and going.
No panic suffer if things are done right, and Cadillac makes things very right.
Time and patience, regards
Image is very important in this segment . Drive by any country club and you will see BMW’s ,Audi’s , and C-classes . That demographic is sold on the image reflected when they pull up in a bimmer . These folks want something that tells the world that I have the best and can afford it . It shows in the shoes they buy and the clothes they wear and the zip code were they live . Plus the germans have played in this market alot longer then Cadillac has . Like an article that was out a few days ago , its going to take Cadillac 10 to 15 years to gain the respect they are looking for . Its not even going to happen by 2020 . Thats just a date when the whole line-up will have changed . They still have to sell those vehicles to a very quality minded consumer . And maybe by then the new marketing team will have a better sense of what this car company is . I do worry though that Cadillac will blow through the 12 b. and if sales dont start to increase , upper management will pull the plug . You even have to look at the economics that will come into play after the next presidential elections . Although China is a bright spot at the moment , their economy is slowing down and that is were Cadillac wants to sell , Europe is a diff. story and our economy isnt exacltly as strong as it should be and Cadillac isnt selling many units right now . Price,product and content will sell Cadillacs cars then that goes along way in turning their image around .
Everyone here has an idea on this but you need to put all of this together as it is a multifaceted issue.
The truth is these cars got better funding than any Cadillac has for years but they still did not get all they needed. That is resolved and we will get cars with the tools to not be just as good or close to as good. These new cars will be better as they will get the full treatment from proper build funding to people marketing funding and dealer funding.
Then it is up to the work or earning the image back. You can not buy it or engineer it but you can put the time in and earn it. And that is what it will take. We have had infighting from Lutz. Barra and Ruess against those at GM that were the problem. Today we now have some outsiders who can in and told them the truth and did not have a long GM career to worry about. They were given what they asked for and not their butts are on the line so they will work as they will only be remembers for their latest project.
The key to this is the money and GM being kept back to let them do what they need to do.
Keep in mind the money is not only for a flag ship but to fix and replace even these models. One year and one model is not going to fix a reputation but all the work together and time will bring the changes needed.
As for the percentages of sales up and down really look at the hard data. 30% of their volume is not that many cars. Many of their sales dips are 500-1300 cars at best. We are not talking a drop of 35,000 cars.
I for once am excited to see what happens here as this kind of set up fully funded has not been seen since Harley Earl.
Build your damn concepts…… Please I’m buy a bmw…. Why been a loyal buyer of caddies but they tired of being trick to wait on a concept that’s not built…… Who wants a car name CT6 that’s a food stamp crap….. Shaking my damn head and I encourage my friends to keep their bimmers and Benz cadillac is not serious…..CT6… Joke
Marcel step back and look at the big picture and you see where this was and where it is going. An informed opinion Is the most wise one. You appear to be missing the details on how we got here and where this is going.
Besides it is the car that sells the name not the name selling the car. If you build a car right it would even sell if we called it Marcels Car.
ATS initially sold well when the residuals where near BMW levels. when the residuals dropped under 50 percent last year, ATS became too expensive to lease.
Also its time to Dare even greater . I live in the Mid-West and actually right next to the city that builds both of these cars . The lots are jambed full of them , the factory is running at less than half capacity and will probably shut down early for the model chande over . My point is even living in the vacinity of the plant you do not even see our local media ( tv and on air ) advertising these cars . In my Motor Trend mag. you will see an ad for the V-series , but thats it . There wont be much trickle down sales of the base cars because of the V’s . Maybe GM doesnt want to spend the money on advertising these slow sellers , but they have to do something to ignite enthusiasm and get people in the showrooms . I dont even see them on the streets at all . If there is going to be a fire sale and the end of the model year that sure doesnt do Cadillac alot of good for an image they want to re-create .
My wife and I were on I75 in SW Florida a few days ago, when we were passed by a new ATS coupe. My jaw dropped. It was one of the most bad ass cars I’ve ever seen, and beautiful to boot. If I had the money, I would have driven to the Cadillac dealer the next day and ordered one… Knowing what’s underneath the beautiful package.
Without a great ad, it would be a sin to let this work of art to languish and die.
As the owner, since new, of a 2013 Cadillac ATS, I can confirm despite all its perceived blemishes that I love the car. However, despite its design, engine, CUE, steering, and other features, I wish it more like a Cadillac with a more comfortable luxury ride. I replaced the run-flat tires with similar pneumatics, but I feel the car still rides like a pick-up. I think they tried to build a BMWillac for the 25% enthusiasts, and left we 75% to go back to Lexus and MB. If the 2016 model hasn’t changed, I’m going elsewhere for a new car replacement. Sorry US, I tried. FD Ripish, Irvine, CA
I’m 66 and from Detroit.That makes me seemingly knowledgeable about cars.
I have some suggestions to consider for Cadillac to get their ass in gear based on what other makes have done over the years to land comfortably on their feet.
1. Offer a much longer drivetrain warranty like the Koreans did (100,000 miles)to get a very strong hold in the market.place.It shows that Caddy has confidence in their reliability.
2.free oil changes for the first 10,000 miles.
3.Guaranteed $$ trade in pricing thru a Cadillac dealership.(on a new Cadillac of course) again shows Caddy confidence in their products).
3.Call customers after any service to make sure their satisfied with the work done..and if not..beg to find out what you can do to make it right at Cadillacs expense.(an investment in Caddys future.
4.Make sure 1 specific service rep is assigned to each owner so the customers develop a sense of purpose and confidence that their being properly cared for.Make sure the service rep is familiar with the history of the customers car before he checks satisfaction with the customer..make the owner informed and empowered…not helpless to the jaws of the service dept.
5.Allow customers new loaners for a day to drive (with proper credentials and insurance of course) to experience what Caddy has to offer .(If Caddy believes they have something to brag about they should get a chance to show the public what they have to offer them).After the loaner comes back in.,sit down for coffee in the lounge with the person and find out what questions the potential customer has no matter how simple or stupid the persons questions may seem.
6 .Give first time Caddy buyers incentives…again..some free regular scheduled service,..gas for a month.new owner discounts, points or discounts on service for bringing in a new qualified potential customer.
7.Last but definately not least.definately tell people that the new Cadillacs aside from the super engine models, run on regular gas!
That should be obvious but i’m blown away at how suprised my friends and acquintences are when i tell them .
It’s soo important to buyer,.especially when you let them know that the Germans and Japanese high end cars generally can’t say that…(ie.lexus,Audi,BMW). try it..you’ll like it! Maybe that phrase would help too.
8.Offer 1 or 2 week money back guarentee of satisfaction..Confidence confidence..gotta be a partner with the new owners..Especially now when the customer doesn’t know or trust the new Cadillacs. Introduce me to the new Caddy and proof to me that if i buy it i will hsve something to brag about to my friends and help sell the cars to my friends..Spark an interest and watch the new Cadillacs jump off the shelf..
why the hell they make the CT6 look like the CTS if the CTS isn’t selling….that’s just plane dumb.