Sales of Cadillac vehicles slid 3 percent to 13,515 units during June 2015 in the U.S. Though the continued sales slide is disappointing, especially in light of the brand producing vehicles that are as good as or better than those of the competition, there is rhyme and reason behind the sales drop.
Cadillac says that the decline is due to a “planned 56 percent reduction in sales to fleets”, and that retail sales increased 3 percent in the U.S. in June.
The GM Authority Take
Retail sales are usually significantly more profitable than sales to fleets, and Cadillac’s reduction in fleet sales is most likely the main reason that its average transaction prices (ATP) shot up 15 percent in June. Even so, we would still like to see Cadillac grow the top line of its business by selling more vehicles. After all, Cadillac’s direct rivals outsell sell it by (roughly) a factor of three.
Comments
MARKETING, MARKETING, MARKETING, MARKETING………. 😉
Is 2016 suppose to be the year they introduce more crossovers? Since the SRX is so popular, two additional crossovers of various sizes could jump start their sales. In addition, I think increased crossovers will attract a different demographic for them. Glad to see the improvement in retail sales.
Cadillac needs to start selling more cars now . It’s the start of a new model year , and that’s typically when car companies start to ADVERTISE their new models . So get it in gear Mr. Johan . Spend alittle of your 12 Billion dollars ,and tell America more than how you Dare to be GREAT ! ! ! !
OK Spike where do we start.
Money is already going into a new advertising firm but the 2016 models are not out yet.
The money is going to a new engine program but it will take several years for design, development, testing and production.
Money is going to new product and updates that still have to go through design, development, test ing and production. it will not be ready for 4-5 years. But we will get the product already done before the money was given.
If you look around the 2016 marketing has already started as the print ads and even internet marketing has started. I received some of the best photography on the cars already. Also the road test are out on the ATS and the CTSV will be out August third to coincide with the release of the car to the public.
There is a lot more going on but you have to give it some time.
If you look around few companies are marketing much. Most are just pushing year end discounts on the 2015 models and no one is really marketing much on the 2016 models as they are not even in the dealers and just starting production in many cases right now. You are about one month out from them hitting the dealers and the marketing to kick in.
It is not good to get people excited on a new model you do not even have in dealers. Explain to them well yes that is our car but come back in a month when we have on. As for the present models they are just being sold off and do not have te new features you want to push like the improved Cue.
The key with marketing is not just to do it but to also do it at the right time. I know many of the companies I deal with have issues for marketing things months ahead only for me to get disappointed customers who are mad at me as they can not see of buy product not due for months.