Say what you will about Cadillac’s most recent decisions revolving a flagship sedan and marketing moves, but the brand is making General Motors money.
WardsAuto reports Cadillac transaction prices have continued to rise throughout 2016, specifically on the 2016 Cadillac ATS, the brand’s entry level vehicle. Cadillac President Johan de Nysschen convinced GM brass to unbundle options and packages, which were steering potential buyers away. For example, customers would have to choose a $10,000 equipment group in order to receive a sunroof.
Bundling makes the build process easier, and less costly at the factory, but when luxury is the name of the game, de Nysschen knows a thing or two. With bundles undone, transaction prices have rose an additional $1,500 in past four months on the ATS sedan. In 2015, they were up $2,000 as a whole.
“2015 from a revenue basis was a killer year,” de Nysschen stated.
From a further financial standpoint, if Cadillac’s average transaction price is $53,000 per vehicle with 278,000 vehicles sold last year, that equates roughly to $15 billion in revenue for GM. Not too shabby at all.
If de Nysschen has his way, he thinks the brand will be on target to sell 500,000 vehicles in the U.S. in five years. Should that happen, Cadillac’s roll of the dice will have been worth it.
Comments
IMO, Cadillac should offer the sunroof standard since it is a luxury brand. If you offer power windows and door locks as standard equipment on base trim, there is no reason not to have a sunroof as standard equipment. You have the sunroof shade that covers the sunroof and that person can retract the shade and at times open up the roof for fresh air when their is an urge to use it.
Not everyone cares for the sunroof or have a need for one but it is one of the options to have to make the cars more appealing and know it is there instead of turning on the climate control on beautiful days.
I like to see HID/LED lights as an option on the base trims on entry-level to mid-executive models as well when time goes by.
Standard sunroof is about the worst idea I have ever heard. I won’t buy a car with a sunroof, let alone a smaller car with one.
They would lose a ton of sales by making it standard. Those over 6 ‘3″ probably won’t fit in one comfortably.
I disagree and it is a logical idea. Rather you like it or not, Cadillac is a luxury brand, not a bread-n-butter brand like Chevy. As cars evolve over time, they could design cars with higher roof lines if needed or makes seats thinner but within extra support with multiple seating positions for taller-than-average drivers.
Your argument is not any different if you drive a Corvette or Miata and can’t fit in them because you are taller than 6’3″.
Johnls_39 and Mike. I agree with both of you a little.
I think Cadillac should have a higher standard equiptment list than they currently do. If JdN is not going to lower the price of the cars to make them more attractive then up the content to make a more compelling value proposition.
I do think that until there is a full redesign adding standard sunroof would impact headroom.
Johnls-39 – “… they could design cars with higher rooflines …” Yuk!!!
I really don’t like the look of the BMW 1er and 2er precisely because their rooflines are so high they were dubbed “bowler hat”. After years of owning BMW’s because of their looks (and handling of course) I can’t buy one now because of the high-roof fugliness. The 2er is nearly as high as an SUV! Not sports sedan at all! I am actually buying an FR-S/86 next because of exactly this issue – low roofline, low seating. On the other hand, the ATS is stunningly beautiful. If the V6 had a manual I’d buy that instead of the FR-S.
Cadillac, please please please I beg you, make that sub-ATS rear-drive coupe. The front-drive A3 and CLA outsell the 2er not because they are front-drive, but because they look better than the 2er big-nose bowler hat. Please don’t make that rumored front-drive small sedan.
I very much enjoy the warmth of the sun so all my cars have sunroofs (except for the convertibles of course). And I agree with increasing the premium features that come standard on all Cadillac models. However, I would not think it wise to make a sunroof standard. They do decrease headroom and some of my (very) tall friends find that most uncomfortable. And raising the roof line is not the solution. As Chrysler’s K. T. Keller proved high roofs might be great for those that wish to wear any style of hat, they also hurt styling and sales.
Thanks for speaking up for the big guys
I’m 6’6″ and I can sit in a car with a sunroof, so can you.
Sunroofs also add a LOT of weight. A key selling point of new Cadillac cars are taut handling, best-in-class curb weights, and driving dynamics in general. Some people prefer hardtops without sunroofs for that very reason. They’ll always be the best performers w.r.t. other trim packages.
I don’t think any OEM offers sunroofs standard. They’d be turning customers away for the same reason: they’d be pigeon-holed into buying something they don’t want.
I love sunroofs… I won’t buy another car without a sunroof (I’m 6′-2″, and fit fine), but I do know a lot of people that dislike sunroofs or won’t buy a car with one for various reasons. They should never be standard on any car, but should always be an option. I should be able to add a sunroof to a base car without having to pick an option package I don’t want, or move up to a trim level I don’t see value in/don’t want to pay for/can’t afford.
Forget the standard sun roof. That is one options of few that is very polarizing to customers. You either want it or not and it is enough to prevent buyers from coming.
Two key points less head room for some taller drivers that is a big issue with some and will change their buying habits.
Second is the issue of past bad experience. While not many there is a segment that has suffered expensive failure and the dreaded leak.
To me I would not want to buy a car unless it is offered. This is my dilemma in the mid sized trucks now is I want a smaller truck but I want a sun roof they do not offer.
You can offer many standard options but two you never make standard is color and sunroofs.
You do realize that if a sunroof is not a option it can be installed as a dealer option!
A dealer installing a sunroof is like a dealer repainting a car… not a good idea based on quality.
You ARe Completely Full Of crap! And that’s being as nice as I can. Dude I have a car right now that was on the lot brand new without a sunroof, paid the extra money for a dealer installed sunroof and what do you know I have the car I wanted with a sunroof.
Did your parents teach you to live in fear? There is nothing wrong with a dealer installed sunroof. You create issues where there are none just so people can hear you complain!
People like you need other people to do your thinking for you, the manufacturers don’t need to solve all of your issues! You can solve some of them on your own, or maybe you can’t and that’s the real problem!
Scott (not the one of the Scott3 variety):
I should have delivered this warning days ago but I was being nice and let it slide. So, let this serve as your first and only warning.
Have you noticed that no one here is attacking you personally, or that nobody is smack-talking your parents? By contrast, you seem to be struggling with leaving a comment that doesn’t try to insult or otherwise disparage someone on a personal level. And that is not going to be tolerated… neither is it acceptable behavior because this is not a bazaar. Alas, this is GM Authority — and we are not gathered here to talk smack.
So, if you can’t have a normal dialogue with others without attempting lame kindergarten-level insults at those who you haven’t even met, then perhaps you have bigger (personal/psychological) problems to look into. Or perhaps your parents haven’t taught you proper etiquette. Who knows?
The point is that neither myself nor anyone else here is foolish enough to make personal conclusions about someone’s (your) personality, family, or upbringing, etc. based on our opinions about cars. And no one is throwing insults your way.
What makes it even worse for you is that you aren’t discussing these topics with a bunch of newbs; people here are well-versed in the industry, working or having worked in it for a long time. They know the business. They know what they are talking about. But with each and every comment, you demonstrate that you have a very big mouth despite not being very informed.
Now, no one is asking you to agree with their opinions or comments. But maybe it would serve you good to stop and listen to those in the know, and then reply with a rebuttal that doesn’t contain childish insults. Unfortunately, your incessant attempts to deliver personal attacks/insults are just lame and don’t help, not in the discussion, nor in your reputation.
Bottom line: if you can’t participate in healthy discussion here on GM Authority without trying to insult others, without trying to offend or personally attack those who disagree with your opinions, then I will ban you faster than you can say “Dealer, I’m a sucker… please have a vendor install a crappy sunroof for me”.
Got it?
Lmao! Got em ?
Scott non 3
Alex is correct here. While it could be done the consistence of getting it right and the lower cost of doing it all in one place would be out the window.
Where as GM for a few hundred dollars can install one at the factory with the proper roof and all the related hardware made to fit a local shop could do it but not at the same price and no where near the same quality.
I have a car we put a T top in. While I did get it in with top quality it was no where as cheap to do as the factory set up.
You have demonstrated a distinct lack of knowledge of how things really work and you may fool your friends but not people here that really deal with this stuff for a living.
Alex is one of the better informed people here and I would recommend that you listen to him as he generally has good information to share.
Even he and I can not always agree on subjective things but I respect his knowledge as he generally is on the mark. I would recommend you listen to him and learn.
Dealer installed sunroof is NOT as good as factory install. I can always tell the (crap) aftermarket jobs, because they don’t sit flush with the roof, they sit above it. When they come from the factory, the roof is sunk in around the opening so that the unit sits flush with the surrounding roof. You’re paying as much as getting the factory installed sunroof, but in the case of my previous car the dealer tried to convince me to pick a car from the lot and have them install the sunroof instead of ordering. It was going to cost the same amount, and didn’t come with the homelink garage door opener that came with the factory one. I ended up ordering the car I wanted. You most likely won’t get any of that money at trade in time, since the sunroof isn’t linked to the VIN, or might even get less for it not being stock.
People who buy luxury cars don’t want things standard, they want to pick and choose what options they want to make their cars exactly like they want/need!
Again you are full of crap!
Really? And you can make this conclusion based on what? Personal experience? Conducting surveys and focus groups? Working and interacting with customers on a dealership level for several decades? What is your basis for what is currently a ridiculous and baseless comment? Please, share with us.
So now, let me tell you: options are great. Whoohoo. Great. But a luxury car just offer many features over a non-luxury/mainstream unit as well. Typically, this falls in the realm of design, build quality, brand, and standard features. It doesn’t necessarily include a sunroof — so I’m not arguing for its inclusion as standard equipment. But it does apply to other features.
My basis is having owned such cars, having spent years on the dealer side of the business in various positions, and having worked for a little company called General Motors. So again I ask you, what is your basis for the opinion you posit above? Or is it solely a hypothesis?
While I don’t agree with his delivery method.. I have to say that I agree with Scott. In my personal experience purchasing luxury cars I would have no issue with the idea of a “love or hate” option like the sunroof being left OPTIONAL. I won’t mention that all we are talking about is dealer inventory these days.. as finding the car on A lot.. is as easy as going on cars.com and doing a search. If U are ordering it.. its a moot point. IF we are talking PRICE.. then sure.. I can agree that the SUNROOF should be a no cost option.. at least in terms of perception.. as in charge for the sunroof in the price of all the cars by adding the cost in automatically (sunroof or not), but if a person doesn’t want it, U do a perceived discount. My last four Cadillacs have all had sunroof.. with the first one, a 2005 STS 4.6L being a dealer installed option. It did nothing to hurt my trade in value when I bought my next. My most recent purchase.. a ’16 CTS-V fully loaded.. did come with a sunroof. I’m 6’3′ BTW.
What Cadillac needs to do, in ref to standardizing things, is buck the trend that Bimmer and Benz are utilizing. Cadillac should make HIDs standard. Beauty lighting such as the LEDs on the upper ATSs should be as well. There simply is no reason in the world why a $30K Camaro RS should get HIDs but the ATS, even in base form, comes with halogens
Scott missed his midol dose this morning.
I think all options should be available for order not just part of a package but I would also offer the specific packages for those who look for a specific level of content ( performance, premium, etc.). I love the lighting on my ATS Performance model, I think it makes the car “pop” and stand out. That should be available on all models. I also order a sunroof on all my cars. I live in Florida and I love using it during the more comfortable seasons. I may not have desired it as much in different climates so I would want the choice as it typically bumps the price of the car up about $1K.
Mr. de Nysschen can increase the transaction prices all he wants, but if the cars don’t sell, and they’re not. It won’t matter.
Instead of trying to make more money, he should focus on making a good product and selling it for a good price. If the ATS is not a “good Value” it won’t sell. It isn’t and it doesn’t. The other component that Mr. de Nysschen seems to not understand is that re-sale value is not following the higher transaction prices, which make it even less of value proposition. If my car depreciates 60-65% in three years, I am certainly not going to buy the same brand again. If I lease the car, the residual value will be low and therefore the monthly payments will be higher. No matter how you look at it, if a car is priced too high from the beginning its never going to be a good deal for the buyer. Which means fewer loyal customers !!!
I’m old, confuse easily but believe the example of bundling options on the ATS may be somewhere out in left field as it concerns the availability of a sunroof. I owned an 2014 ATS Premium and the sunroof was a separate option then–no package required. In looking at Cadillac catalogues for the 2013 and 2015 ATS the sunroof was not included in any package and was universally available as a stand alone option on all lines from standard to premium.
Amen Alex !!!!!! Years ago manufacturers used to let you buy options as a stand alone , but they seen what the Japanese were doing and decided it was a good idea to bundle items as a cost cutting measure in the factories .
I am over 6 feet tall and have had to turn down vehicles because of a sunroof . And I like them so it’s an item I want in a vehicle . But I don’t think they should be mandatory .
Cadillac is finally seeing some strength in volume and TAP’s . Letting a customer order the car they want is a plus . Sure it will cost more in the factory but it ends up paying for itself in the long run . A satisfied customer is what you want , escpecially in the luxury segment .
What I think should be standard fare in all vehicles are the latest in safety features and I still hope one day that the Heads-Up display will find its way in more cars as standard equipment .
Just read an interesting article on GMInsideNews.com that GM is testing a new Cadillac that has never been seen before . And the Chinese are very excited about it .
It said that it can’t be the XT5 because the design is a softer version of A&S with less creases used !?!
And lets give Alex a thumbs up for doing what was needed . We all have our own opinions , some are right on and some not so much . But its all about respect and this website has alot of people that just want to read what others have to say and share . If we want hate or retoric we can get that on the boob tube .
Well the Asian companies bundled not only because of the fact they could save money but since they were importing cars no one was ordering factory direct anyways.
Generally today most options are standard on many cars and only the trick technology and performance items tend to be optional anymore.
It sued to be you had to choose power windows and locks now it is HUD and suspension sport options.
If we all could look a the Chevy SS as it comes mostly loaded and only color, Sun Roof and Transmission are the main options. These three options are deal makers or breakers while most everything else people will not avoid the car over.
Tall people generally avoid sun roofs even in tall roof cars. My SSEI had a tall roof but little head room. Taller people avoid them and that is a deal breaker for them and there are many tall people.
Transmission the same issue as some have to have a manual and some have to have an Auto in a performance car. The lower take rate is changing this for the manual on many models but it is a deal maker or breaker for buyers. Same on Color on anything this side of a Grand Sport.
People today will generally take as many options as they can afford and Cadillac is offering more options and avoiding to lower the price. Options are cheap for them. It adds value for the buyer and adds profits for the MFG.
As for ordering a car Ala Cart well it still can be done if you have a dealer that will do it on many models. You would be surprised at what you can do if you know the right people. But it tends to lower profits and most people load em up anyways in this segment.
I would love to see them take the CT6 and Escalade and offer a custom service. For a price you can outfit the car in special interiors and paint and have it built to your spec. It would not be cheap but customers could have one off cars built for them. The price would cover the added expense.
Right now what will sell and increase in sales is technology to bring in younger buyers. They are all in for this and the more offered the better. The older people will not be thrilled but most times the technology packages can be deleted so they do not have to try to figure it out.