As sales of GM’s Cadillac division dropped off nearly 10 percent in July 2015 to 20,688 units globally, the brand saw declines in four of its major markets while growing in two.
Cadillac July 2015 notes by market (vs. July 2014, unless otherwise noted):
Despite recording lower overall volume in markets such as China, Cadillac did manage to increase sales of the ATS range, which is made up of the ATS Sedan, ATS-L Sedan and ATS Coupe, 1.3 percent to 4,342 units . These sales increases “are emblematic of Cadillac’s deliberate strategy to avoid low-quality business”, says the brand in a statement.
Meanwhile, the reduction in U.S. sales volume comes as a result of a continued and planned reduction in sales to fleets, which are less profitable than retail sales, as Average Transaction Prices (ATPs) reached all-time highs for July.
Going forward, Cadillac is continuing the expansion of its high-performance V-Series lineup. It started launching the first-ever 2016 ATS-V this summer and later this summer, it will begin shipping initial units of the 2016 CTS-V, the third generation of the high-performance vehicle, to dealers.
| Market | July 2015 / July 2014 | July 2015 | July 2014 | YTD 2015 / YTD 2014 | YTD 2015 | YTD 2014 |
|---|---|---|---|---|---|---|
| Total | -9.6 | 20,688 | 22,875 | +1.5 | 150,042 | 147,897 |
| United States | -7.1 | 14,154 | 15,241 | -2.4 | 95,053 | 97,358 |
| China | -17.1 | 4,831 | 5,830 | +7.4 | 42,515 | 39,590 |
| Canada | -14.5 | 857 | 1,002 | +7.1 | 6,520 | 6,085 |
| Middle East | -2.1 | 416 | 425 | +38.2 | 3,139 | 2,271 |
| Mexico | +8.7 | 137 | 126 | +39 | 994 | 715 |
| EU & Russia | +18.3 | 136 | 115 | -16.9 | 838 | 1,008 |
| ROW | +15.4 | 157 | 136 | +13.0 | 983 | 870 |
More on Cadillac’s July 2015 sales results:
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View Comments
This will be solved when Cadillac has a model in each segment
Crossovers enter the scene, top-range CT 7/8, another car under the ATS and improved quality and interior designs
And Cadillac will say bye to poor sales
I agree but it takes time to get there.
I think Cadillac sales will be fine in the long term with the new products along with good ATP's.
Odd article, or at least some of it. The "sales increases" are a sign of avoiding low cost (I assume fleet) business.
CTS-V's are fantastic feats of engineering, but they're not going to make up any sort of sales numbers at twice the price almost of their "normal" variants.
Overall, outside of the US and China, Gm sold about 1700 Cadillacs last month to the rest of the world...I guess that's normal but it's pretty depressing to be honest....less than 10%. You have to wonder if its all worth it in Europe where the costs to setup and maintain a dealer network, nevermind advertising and all those costs, has to be a losing $ venture when there is only 150-300 sales per month across Europe.
When Cadillac truly makes a concerted effort to sell in Europe, sales will be more than 150-300 per month. It's a long-term game for Cadillac nearly everywhere.
European sales are dismal but the products and specifically powertrains are not in place yet to make a significant dent in that market.
Cadillac will need multiple diesel engines and right hand drive to be seriously considered there.
Diesel engines, right hand drive, more crossovers and a sub ATS model will do wonders for sales volumes not only in Europe but emerging markets like Russia,India and Brazil.
Not only are the engines not in place, but neither is the distribution or dealer network. Both are pretty much non-existent. Marketing is also non-existent. All in all, Cadillac is currently in a "hold" pattern in Europe. It's not doing to increase its presence in Europe just yet, and it's not going to withdraw from the market completely, since it plans on entering it seriously in 2020. So things won't change much until then.
What about the article do you find odd? The sales increase you refer to is specifically for the ATS range, whose sales grew 1.3 percent during the month. That, in and of itself, is noteworthy given the planned reduction in fleet sales.
I think the end of Cadillac is nearing. As much as I want it to do good, GM might want to start chopping a lot down. Escalade & SRX is keeping that division around, may want to just keep that. Start putting more money into Buick and Chevy to better their cars
I think the end of your brain is nearing because if you believe that, you are probably going delusional or in the midst of dementia.
But seriously: have you never heard of a transitionary period for a business or company? Because this is exactly what this is.
And considering that these units make GM more than ever before, your opinion above is really dumb
Stupid? Dementia? 'Dilesjonal' (whatever that means).
Thank you, Mr. Trump, for joining us.
Transitionary period man please. Everything I said in my post was facts about their sales and escalade and srx keeping that division alive. Numbers dont lie and it's going to continue, because cadillac just doesn't appeal to younger buyers like that unlike it's german competition.
Mk19 -- it's not "fact" that the SRX and Escalade are keeping Cadillac alive, simply because every product line for the brand is profitable at the current sales volumes.
As I dissect your original post you refer to, I see this:
1. "I think the end of Cadillac is nearing."
That my friend is not fact... it's opinion. One that's fairly off, too.
2. "As much as I want it to do good, GM might want to start chopping a lot down."
Again, more opinion. So... opinion across the board.
General Motors kills Cadillac?
Cadillac is the most powerful weapon of the company to recover it's image worldwide.
It has already made a big silly with Chevrolet, pulling out the brand in Europe.
I hope GM does nothing foolish alike, he may pay dearly.
For example; in Spain my country, Ford has sold 50 Mustang officially in the first week of sales,this number is many.
Much like American cars in Europe; but the people do not want because there is no place to repair, there is no place to buy safely, GM was doing well with Chevrolet but brand has decided to pull out.
Now it starts again from below.
Many people in my country like a Cadillac, but where you buy it? which leads him to look after him ?.
This lack of information and places to sell cars and take care. But Detroit cars really like here.
GM has good cards, but must learn to play with them.
Regards from Spain friends
This is a game of patients right now as there has been a lot of work done but much more to do yet.
Cadillac as a company can not turn on a dime like V series. They never had full commitment till just about a year ago this week and you are not going to change all the things needed for the cars in just one year. 2017 will be the start of the new changes and it will increase from there. Even then it will still take time to earn image and respect.
The present cars are not bad and will only get better. The key is Cadillac is not going to cater to those who have just a little more pocket change than a Chevy owner. They have done that for 3 decades and it got them no where. The higher price and lower volumes on the best cars made is where the market is heading. They can do it with the money they have now and the leadership that has defined and understands where the brand needs to be.
You want better image stop selling to Walmart shoppers and the gang over at the trailer park rec haul. Cadillac is no longer a car for the masses but now for the chose few who can afford them. The key now is to make the cars to their expectations and that is not cheap but it is very profitable.
Cadillac Sales are down 10%. You can spin it any way you want, but Its not a good thing no matter how you spin it. You can say that "Cadillac is in a transition period", but in reality that's BS. Cadillac Makes a great car, so the product isn't the problem. The problem is they pushed the price too far too fast. They can say its OK because the average Transaction price has increased. But if the resale value doesn't increase as well, they're in trouble. If the resale value stays the same, in dollars, it will appear smaller as a percentage of the average transaction price. If that happens consumers will not buy another Cadillac. This not "Rocket Science", this just Marketing and Sales 101. I seriously hope the new Cadillac President and Management Team figure it out before its too late.
Unless you are extremely wealthy buying a new car is a "value driven exercise". Most people are out to buy as much car as they possibly can for they're money. Cadillac has always been a good value, but it isn't anymore.
I think you'll find that it is in Cadillac best interest to cater to those who wealthy.
Luxury products, of course, aren't about good value and getting the most for your money. It's about getting the best. Period.
Cadillac isn't in the business of making a good value car. It's in the business of making the best car.
Cadillac, in spite of increased prices for the current generation models, still considered a good value versus the competition.
How one feels about interior and cargo space, design, material qualities and etc are to each his/her own but they still offer excellent value regardless.
The 17.1% decline in China is very troubling. GM has plans to make China the #1 market for Cadillac, with many new models, new assembly plants and billions in overall investment. If this continues, Mary, Dan and Johan better have a Plan "B".
And China devalued their currency yesterday, which makes things more expensive.
I wonder how you say 'whopping discounts' in Mandarin?