Owners, fans, and enthusiasts of General Motors’ Cadillac luxury car brand are all too familiar with the brand’s stigma in the United States: “your grandpa’s luxury car”… “a sofa on wheels”. If I, as a proud owner of a beautiful Cadillac ATS, could collect a dollar every time I heard something along those lines from friends and acquaintances, I would have enough to buy a new 2016 CTS-V. Maybe.
True, Cadillac doesn’t carry the same high-end cachet as its direct rivals, namely BMW, Mercedes-Benz and Audi. Image and perception are issues Cadillac has been trying to shake for nearly two decades, primarily by lettings its products do the talking. It has introduced new models with youthful, sporty, and luxurious design and driving characteristics.
Whether or not the activity is aiding the brand in ridding itself of the stigma is hard to tell: in its home market of United States, Cadillac is outsold by German rivals, namely BMW and Mercedes-Benz, on a roughly two-to-one basis, while the average age of a Cadillac buyer is 62. But the brand is perceived in an entirely different way in the world’s biggest car market, China.
To wit, Cadillac doesn’t have the cultural baggage in China that it does in the United States. This makes prospective luxury car buyers more open to the brand than in the US of A. Interestingly enough, the German luxury brands in China have — over the years — become associated with being “traditional” — the choice of businessmen or government officials. In doing so, they’ve lost the youthful and (dare I say) “cool” image. The circumstance represents an advantage for Cadillac: without a preconceived stigma, it has the ability to establish its own image and identity in the People’s Republic.
Not having any perceptional baggage is already paying dividends for the brand. Chinese Cadillac buyers are roughly half the age of their American counterparts. In fact, that number has been steadily dropping over the last few years.
Translating all that to sales paints an even more interesting picture: China was Cadillac’s second-largest market in 2015, accounting for 79,779 sales, up 17 percent over 2014. By contrast, Cadillac’s 175,267 sales in the United States in 2015 was roughly twice as much volume, though at a much lower, 2.6 percent growth rate. But for Cadillac to continue its double-digit growth in China might require changes, particularly to the design of its vehicles.
Sales Results - Cadillac - December 2015 - Global - By Market
| Market | December 2015 / December 2014 | December 2015 | December 2014 | YTD 2015 / YTD 2014 | YTD 2015 | YTD 2014 |
|---|---|---|---|---|---|---|
| Total | +24.5% | 32,292 | 25,928 | +7.5% | 277,868 | 258,477 |
| United States | +28.7% | 20,787 | 16,150 | +2.6% | 175,267 | 170,750 |
| China | +17.2% | 9,214 | 7,861 | +17% | 79,779 | 68,189 |
| Canada | +9.9% | 1,094 | 995 | +16.2% | 12,249 | 10,538 |
| Middle East | +34% | 528 | 394 | +19.6% | 5,136 | 4,293 |
| Mexico | +6.1% | 191 | 180 | +27.7% | 1,806 | 1,414 |
| EU & Russia | +53.8% | 286 | 186 | +4.7% | 1,748 | 1,670 |
| ROW | +18.5% | 192 | 162 | +16% | 1,883 | 1,623 |
1. Art & Science Design
The 2003 CTS was the first Cadillac to employ the Art & Science design philosophy
Back in 2002, Cadillac introduced the first-generation CTS. The vehicle’s introduction marks a historic moment turning point for the brand, since it launched off Cadillac’s modern-day Art & Science design philosophy. Though it has evolved through the years, the look is significantly bolder, more aggressive, more edgy than the design languages of BMW, Mercedes-Benz, and Audi. In fact, A&S has, at times, been referred to as “severe” and “intense”.
Some have posited that the design language has deterred more luxury car buyers from purchasing Cadillac vehicles, particularly in China — where customers are said to prefer flowing lines to sharp creases and angles. Curiously, we’ve seen zero empirical evidence to support the claim.
Nevertheless, the topic — according to leading reports — caused discourse between Cadillac President, Johan de Nysschen, and GM Executive Vice President of Product Development, Mark Reuss. de Nysschen was reportedly in favor of toning down the edgy design, while Reuss was reportedly opposed to doing so.
2. Producing In China, For China
The 2016 CT6 is the first car to be produced at a new Cadillac plant in China
Another vital component to further Chinese sales success is local production. Making Cadillacs for China in China removes a 25 percent vehicle import tax, which stifles sales. Producing Cadillacs destined for the Chinese market in China removes the tariff, making the vehicles more affordable. Cadillac opened its first Chinese factory in January to produce the new 2016 CT6 full-size luxury sedan.
And unlike the supposed design language issue, which continues to float around as an unproven hypothesis, removing a 25 percent tax from the price of a vehicle should drive sales even further. And that brings us to the third pillar of Cadillac’s growth: SUVs.
3. Crossovers, SUVs, CUVs
2017 Cadillac XT5 launches in April
Like in North America, the crossover/SUV craze is also alive and well in China. Unfortunately, Cadillac significantly lags behind its direct rivals in offering a wide portfolio of crossovers and SUVs. The brand currently offers just a single one — the SRX. By contrast, BMW offers four crossovers, with a fifth model on the way, Mercedes-Benz offers six crossovers and SUVs, with a seventh model coming shortly. Luckily, the 2017 Cadillac XT5 — an all-new midsize crossover that replaces the SRX — is launching in April.
It will be followed by three other models — likely to be called XT2, XT3, and XT7, which will reach the market by the year 2020. That will be just in time for Cadillac to invade the European market on a full-scale basis, the brand’s first attempt at doing so in over two decades.
More Cadillac Resources
- Cadillac news
- Cadillac sales results
- Cadillac CT6 info
- Cadillac XT5 info
Comments
My building parking ramp has many Mercedes, Audis and BMW driven by 30 somethings. My 2014 ATS in red obsession color stands out and I’ve received numerous compliments. Nothing unique about Mercedes, BMW, Audi
I also finding that more and more young people are aware of the outstanding performance attributes of the ATS and CTS
The ATS and CTS do have a unique appearance in their respective segments.
And they absolutely feature very good driving, ride, and handling characteristics. The problem, though, is that so do the Getman rivals (and Lexus). Where Cadillac comes short (and often times fails entirely) is the details and refinement of the vehicle that go beyond the driving experience. Details like power-folding mirrors, headlamp washers, grocery bag hooks in the trunk, the integration of the cargo net in the trunk, the trim of the window, lock, and mirror switches inside, the feel of the automatic gear shifter, the exhaust note, the lack of roof rack integration systems, the gauges, the font used throughout the vehicle, and even the feel of the HVAC and infotainment controls, not to mention the lack of an auto-dimming passenger side mirror… all of those things come up short in the current generstion of Cadillacs, ATS, CTS and even the new CT6 and XT5 included. Aside from the superior performance and driving experience, it’s the details that set luxury cars apart from mainstream ones. And unfortunately, Cadillac got the hardest part right (the driving experience) but quit had way on the easy bits (features, equipment, and trim). What makes it worse is that all of these items can be fixed with rolling updates or refreshes… and Cadillac has not done so with these cars.
And as an owner of an 2015 ATS premium (and other German and Japanese luxury cars before that), it truly saddens me that this is the case.
So, unique design and good performance will only take you so far in this space, as details are just as important. Get these things right, and you create a great image, and a badge that people seek out and desire, and one for which people will pay extra.
Cadilac’s image in the US is currently suffering, resulting in lower residuals/resale values. And the lack of attention to detail is jots definitely to blame. That, and lack of good/effective marketing.
Alex somewhat agree but biggest issue I believe is reliability and dependability.
Cadillacs have not had good reliability ratings and that stigma is hard to shake.
Consumer reports only recommended Cadillac is the CTS and most of the other Cadillacs are precluded because of reliability ratings.
J.D. Powers recent dependability study of 3 year old vehicles didn’t include any Cadillacs while there were Chevys Buicks and GMC. Go check the press release on GM website!
Very hard to win sales battle when you are telling long-term base to take s hike and trying to lure competitors who are content with their vehicles that are generally reliable.
On a personal note, my $55k 2014 STS Premium was borderline junk in spite of being a fun car to drive! So far my 2016 CTS Premium has been excellent, no returns to dealership and an extremely rewarding vehicle to drive. I have shared my experiences on both with friends.
Produce a dependable and reliable vehicle with enhancements you have detailed and customers will come!
Martin — I fully agree that reliability/dependability is a factor, but it is not the biggest (most important) simply because at least half of the vehicles are leased and are thus turned in way before they are out of warranty. So, the only way in which sub-par reliability could negatively impact Caddy at this point is whether prospective owners would even consider the time/opportunity cost of brining in their car to the dealer for *free* repairs.
Now, I’m not saying that sub-par reliability is acceptable for Cadillac to have. It isn’t, and needs to be addressed on the vehicles you outlined (ATS).
Ultimately, Cadillac’s sub-par sales performance is the result of:
1. Product: lack of attention to detail as compared to the competition (as I have outlined above)
2. Product: not being in the right segments at the right time (crossovers)
3. Reliability: sub-par reliability in some segments
4. Brand: the brand doesn’t have the cachet of the competition
More and more people see the A & S design as becoming stale . Although it has evolved over the years it might be time for a more revolutionary design . Except for those that follow Cadillac closely consumers are having a hard time telling one car from another . I hope the new SUV’s have a design that is easy to seperate themselves enough so the consumer can easily tell the difference . I realize that the portfolio of any manufacturer wants their vehicles to have the same theme , but there needs to be more seperation between models . Just as an example I recently watched a show called Motor Week , and they reported that the designers of the CT6 actually went across the hall where the XT5 was being designed and liked the looks so much of the headlights that they stole the idea and incorporated it into their own model .
I wonder now that the ATS-L will halt production in China how long until they start building the CTS too avoiding that tariff . Their new facility is flexible enough that it can build it . We are fully capable of building it for those young consumers but but how can we compete when you have to add 25% to the price to ship it there .
Cadillac has been trying to re-identify itself for decades and that is a bigger job than one man can do in 5 years .
I’m interested in what the average age of the other countries also. The average age of 62 in US seems suspect to me. I seen a lot of people in new Cadillacs that does not indicate they are at the age demographic. I seen a lot of younger people drive the ATS, ELR, Escalade and CTS somewhat. I do see that representing the XTS though for the age demographic however.
The average age is indeed 62. The ATS and CTS are, by far and large, still purchased by those in their 50s and 60s. The XTS skews even higher.
Those are slightly (key word: slightly) offset by SRX, ATS and Escalade, but not enough. The ELR doesn’t make enough volume to make a noticeable dent in average purchase age.
62 isn’t that bad though, given that Lexus was at 65 just a few years ago. But until Cadillac’s image changes for the better (and ore youthful) in the US, age will remain more or less the same as it does today.
When you ask for age in other counties, which ones do you have in mind? It’s difficult to collect data from most other global markets since data is much more restricted… but even if it wasn’t, it doesn’t really matter as much given that the US and China are far and away the biggest markets… and will remain that way for quite some time.
Thank you for reply,
If you can, I like to know for Canada and Middle East if at all possible for the average age of those buyers too.
Well I live in Saudi Arabia and I am a huge Cadillac fan. I own 2014 ATS and i can tell you that most ATS and CTS buyers are below 40 and sales are increasing around 20% every year roughly 1800 units in 2015 which is around tenth of Lexus cuz Cadillc is having the worst dealer (only 3 showrooms and services center) in the whole country while Lexus have more than 50 all over the country
Thanks for the info. I hope Cadillac add more dealerships over there. They’re badly needed for the potential growth from additional vehicles in the line-up in few years.
its idiotic that Cadillac still has the same A&S and they are continuing it….no wounder why Cadillacs are boring and dated….Cadillac reeks of stale french fries.
What’s stupid is that, DESPITE EVERYONE TELLING YOU IN PRIOR THREADS, you still do not realize that the A&S design language has evolved significantly and is Cadillac’s single biggest advantage, making them distinctive in a sea of “me-too” luxury cars.
Sure, the general concept is the same… but the design is totally different from its introduction 15 years ago. How stupid do you have to be NOT to realize this?!
Your comments reek of poor taste and bull$shit.
I’m firmly with Mark Reuss. Design language is one key area where Cadillac isn’t trying to fit in with the other luxury brands. When I see the sharp, crisp lines, I immediately think ‘cutting edge’. Cadillac’s marketing would do well to show Cadillac at the cutting edge of luxury and technology.
But curves and flowing lines? Everybody’s going for that, including Buick, but Mercedes is best in the business. Overdo it, you’ve got Infiniti, with bulbous styling, half-arse it, you’ve got Lexus, with sharp creases and flowing lines clashing on the same car.
Art & Science is doing fine staying evolutionary, where it’s likely to remain.
I guess A&S still has a lot of life in it and Caddys will continue to look boring with the high beltlines and raising creases and wedged shape….personly I’m not a fan of todays Caddys and I would wait till Cadillac has a new revolutionary A&S before I’ll buy a new Cadillac probably around 2025 when Cadillac replaces all of there sedans with stunning wagon like crossovers…todays sedans are so bland…the ATS looks weird and boring as hell and the xt5 looks unbalanced….I guess by 2025 A&S and Caddy sedans will be gone.
First of all… Boring? High belt lines? Whatever you are on, get off of it. If there is one thing that Cadillac design is not, it’s boring. And the belt lines are just as high or just as low as they are on other vehicles in the classes.
Second: the XT5 looks “unbalanced” because of its FWD origins. Apply its design to a RWD-based crossover and the vibe changes so much! And it looks like the rest of Cadillac’s crossovers will also look that way since they, too, will be based on FWD architectures.
Third: what is a wagon like crossover? Replacing sedans with those? What is this nonsense?
And 2025? Is this a time frame that you just pulled out of your… you know? There is no evidence that A&S is going anywhere. Even Cadillac itself doesn’t know right now. But you should be sure of one thing: A&S will continue to evolve and continue leading the luxury vehicle space in design.
Until then, go do yourself a favor — see a CT6 in person. It’s stunning.
Don’t waste your time. He is like this on all the Cadillac threads, even on GM Inside News that he over-welcomes his nonsense that you already know what he already says when you see his name.
You nailed it on the head. The XT5 looks ungainly because FWD doesn’t work well with the design language. See the XTS and SRX.
I’m sorry but its disappointing that the CT6 doesn’t look like the Elmeraj….in photos all I see is a bigger ATS/CTS….maybe I would have to see it in person and I hope it doesn’t look like a bigger bloated CTS in person.
So you’re commenting about the CT6’s design, but you have yet to see it in person? I think something is awry here…