Cadillac XTS deliveries in the United States totaled 1,345 units in February 2017, a decrease of 25.8 percent compared to 1,813 units sold in February 2016. In the first two months of 2017, sales of the sedan have decreased 11.9 percent to 3,194 units.
Sales Numbers - Cadillac XTS - February 2017 - United States
| MODEL | FEB 17 / FEB 16 | FEBRUARY 17 | FEBRUARY 16 | YTD 17 / YTD 16 | YTD 17 | YTD 16 |
|---|---|---|---|---|---|---|
| XTS | -25.81% | 1,345 | 1,813 | -11.91% | 3,194 | 3,626 |
In Canada, XTS sales increased 25 percent to 50 units in February. In the first two months of the year, XTS sales totaled 81 units in Canada, an increase of 6.6 percent compared to the first two months of 2016.
Sales Numbers - Cadillac XTS - February 2017 - Canada
| MODEL | FEB 17 / FEB 16 | FEBRUARY 17 | FEBRUARY 16 | YTD 17 / YTD 16 | YTD 17 | YTD 16 |
|---|---|---|---|---|---|---|
| XTS | +25.00% | 50 | 40 | +6.58% | 81 | 76 |
The GM Authority Take
With a drop in both month-over-month and year-over-year sales volume, we think it’s safe to say that the XTS is the latest victim of the shift in consumer buying dynamics that favors crossovers and SUVs to sedans. What’s more, the current model has also aged quite a bit since its launch for the 2013 model year.
In August of last year, Cadillac President Johan de Nysschen confirmed that the XTS will receive a major refresh in the near future. The model was initially set to be discontinued prior to the 2020 calendar year.
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Reporting by Francisco (Frankie) Cruz. GM Authority Take analysis by Alex Luft.
Comments
Oh well, this classy beast is an underdog, I like that. It’s the Rocky Balboa of luxury cars. It’s seems to be very much a fan favorite.
As to this story, even so, report after report from this site shows it is still the better/best selling Cadillac sedan. How have CTS/ATS sales compared, or CT6 sales? These kind of things are cyclical, dudes. Inb4 sales are up again (which seems to happen, according to this site on a monthly basis).
How many CT6 sold in Feb?
Not so much a “fan favorite” as it is a favorite of those who have purchased Cadillacs from the DeVille/DTS days. For the most part, these people aren’t so much “fans” as they are loyal lifetime customers of the Cadillac brand and a certain type of vehicle that the XTS provides.
Why the comparison to the ATS, CTS or CT6? Not only are these totally different segments, but you said it yourself, “these kinds of things are cyclical”. This isn’t an internal rivalry, so I find the comparison of XTS sales to those of other Cadillac models completely worthless and irrelevant.
If you really want to compare apples (XTS) to oranges (CTS, ATS, CT6, etc.), then consider that the XTS is the Cadillac most often sold to fleets, most often sold to daily rental fleets, and also the only Cadillac model that has its own bottom-up livery program… giving it a cumulative sales advantage. Also consider what would happen if the XTS were discontinued: most XTS buyers would switch over to the CT6. So in that regard, the XTS is actually impeding CT6 sales volumes. Although, I choose not to look at it that way.
After you’ve considered all that, then also consider the fact that the XTS is the only Cadillac that serves the “traditional” Cadillac customer, making its sales natural (or organic, as it’s often referred to). In stark contrast, all of the other Cadillac sedans are attempting to conquest owners of German sport-luxury vehicles, which is significantly more difficult to do, and is taking place one by one on the ground level. If Cadillac continues to deliver the right product, these customers will, in time, develop the same kind of loyalty as we see towards the XTS… a loyalty that started long before the XTS even existed.
So again, why the comparison? Why them fightin’ words against the CT6 or other Cadillac sedans?
PS: if you want to see how many units the CT6 sold, just scroll up and hit the link that states “February 2017 Cadillac sales results. This is provided in every single sales report we publish.
Here is what I think Alex- When Cadillac pulls the plug on the XTS, they need to rethink the CT6 pricing and packaging. First off get rid of the base rwd 4cyl where even heated seats are optional. Very few people want a full size luxury car with a pathetic sounding 4 banger engine that starts at $54K. If they got rid of that model and placed the CT6 in luxury trim starting at the $54k range, this car would be a great replacement for the XTS and sales would follow. Especially if Cadillac truly has a flagship to sit above the ct6 coming which it sounds like they do.
That’s one idea, and a good one.
I would present the following possibility: what if the four-banger LTG were replaced with its successor? There are whispers that the LTG’s replacement will be significantly more refined than the LTG is today. This should make a CT6 with a 2.0L Turbo a much more attractive package all around.
Interestingly, most 7er, S-Classes and A8s in Europe are actually sold with four-cylinder turbo-diesel or gasoline engines.. so I really don’t know if people truly care how many cylinders are under the hood so long as the power output and refinement are high. It is in the German offerings, and that’s what GM’s next-gen 2.0L should bring, according to some.
Now, I wouldn’t bet on a flagship sedan slotting above the CT6. As a vehicle, the CT6 has all that’s needed for a flagship Cadillac sedan, if the pieces can come together (like high levels of customization, the upcoming 4.2L DOHC, 10-speed automatic transmission, etc.). Though it’s possible that there will be a Cadillac sedan above the CT6, I think that what we will end up seeing is the next-gen CT6 being renamed to CT7 or CT8… with heaps more content and luxury (and a higher price), while spawning a LWB variant and some different body styles, like a coupe and a crossover. We’ll see 🙂
It’s not the CT6 vs. XTS sales numbers that matter. It’s the ATP.
One simply does it better than the other.
Grawdad, what is “the ATP”? And which does it better than the other?
Drew.
“the ATP” referred to in the post stands for an industry sales metric; Average Transaction Price.
Generally, the higher the ATP, the move profitable the car is for the manufacturer. For cars, having a higher ATP provides a slightly better idea of how well a car is doing in the market. Conversely, using raw unit sales numbers tell you more about total production values and not so much about how much the product sells for.
A simple example follows:
Car A lists for $55,000. For a month, the total units sold is 1500.
Car B lists for $40,000. For a month, the total units sold is 2000.
It’s easy to think in terms of unit sales and think that both cars are equal, and that Car B sold more units because it was $15,000 cheaper.
When the price of the car is multiplied by the unit sales, the value of the ATP metric becomes evident.
A | 55,000 x 1,500 = 82,500,000
B | 40,000 x 2,000 = 80,000,000
Car A is more profitable per unit sold than Car B. Expressed as a ratio, for each dollar Car B brings in, Car A brings in 3 cents more (1.03 : 1).
These numbers are at play throughout the industry, with innumerable cost projections scenarios being calculated for each and every car, before, during, and after production.
For luxury cars, the unit sales will be lower and the ATP will be higher. Most luxury automakers (or even ANY kind of luxury goods manufacturer, even scotch distillers 😉 ) wants their ATP high so that it can offset their production costs. This in means that for the product to command a higher price, it must be of a better product quality than other cars that can convince the consumer to buy it.
With that said, can you answer your own question now about which car does it better than the other?
Now, I like to think you’re above trolling, but I can’t assume you didn’t already know what ATP was.
Grawdad, thanks but you’ve only shared a portion of the profit equation. There’s no way that “ATP” alone can tell you anything about the profitability of a car model. And no I’m not trolling.
Yes in general, higher priced cars sell fewer units than lower priced cars. But that’s not always the case. For example, in the USA the Toyota Camry costs substantially more than the Toyota Yaris, yet the Camry outsells the Yaris by a ratio of roughly 10:1. In fact the Camry outsells every other passenger car (non truck) in the USA, even though many are priced lower.
It’s also usually true, but not always true, that the car with the higher selling price will have the higher profit margin when accounting for unit costs – i.e. materials and labor. But in some cases that’s not true either, as some high priced cars may be costly to make in terms of labor and materials, yet may not command a high enough price in the market to yield as big a profit margin as a more modestly priced car.
Where your case really breaks down though is that you aren’t considering development and marketing costs. Each car developed is going to have fixed expenses in terms of design, engineering, testing, tooling, and advertising. And a portion of the platform development cost must be shared too. These development costs tend to start at $1 billion and go up from there.
Probably most luxury cars cost more to develop than more modest cars, yet those higher development costs are likely to be spread over fewer units. Even if the development costs were exactly the same per car (high priced car or cheap car), the luxury car is likely to sell fewer units, thus each of the luxury cars is likely to carry a larger share of the development costs, per car. So it’s not as simple as multiplying the net price received by the carmaker times the number of units sold, for a particular model and year.
Here’s one for you – the XLR must have had the highest ATP of any Cadillac. Do you think it was the most profitable Cadillac ever built (not profit per car, but in total, when considering total sales volume and all costs, including development and marketing)? Given that the XLR failed to meet even GM’s low volume expectations, I would guess that it was a failed project that cost the company money, a negative profit. Now maybe it added some brand cachet (or maybe not), but the point is that you can’t just look at ATP and know anything about the profitability of that model.
If the question being raised is whether the CT6 is more profitable to GM than the XTS, there’s actually no way of knowing that via the figures you’ve mentioned. Average Transaction Price tells us nothing about cost of materials and labor, or development costs. It also tells us nothing about the number of units sold.
The XTS may have lost some sales to the Lincoln Continental. The Continental didn’t exist in February 2016, but sold 1079 units in February 2017. So XTS + Continental sold 33% more this February than last February.
That’s pretty healthy growth for the “American Luxury” segment, even at a time of strong SUV sales. It also might have helped if Cadillac would advertise the XTS in the USA, instead of acting embarrassed by it. Maybe with some new Cadillac management…
A few things, Drew:
1. The segment is not called “American luxury”. Heck, the car that accounts for the overwhelming majority of sales in the segment is the Lexus ES, which is clearly not an American product by any stretch… even thought it’s smaller and less expensive than the XTS and Conti.
2. The segment is not growing, If you can, have a long, hard look at cross sale reports and PIN data, which shows that most Continental buyers are those who have been holding on to their decade-old or older Town Cars and Contis. This means that Continental will hover around 1,000 deliveries per month for the first 10-16 months of its existence, and will then drop like a rock once initial pent-up/pull-ahead demand has been exhausted… much like the MKS it replaces. Meanwhile, the XTS has fared relatively well in comparison thanks to the much stronger customer base established by the DeVille and DTS.
Either way, you’re seeing the top end of the buying cycle right now… don’t mistake it for growth.
To follow up: as much as you love to gripe about “Cadillac management”, I wonder if you’re aware that it is the current leadership that advocated the XTS to stay. Something about biting the hand that makes the decisions comes to mind.
Furthermore, you claim that the XTS is not being “advertised”, which is inaccurate. From what I know, the XTS has the same share of the digital ad buy as other models. It doesn’t get any time on the big screen for two primary reasons:
1. The XTS will soon get a pretty major overhaul, so major advertising of the old (current) model is pointless
2. The XTS customer base is stable and doesn’t necessitate major advertising
3. The XTS is not where Cadillac is going as a brand due to opportunity and segment size I have outlined before
Mind you, products like the ATS also don’t get any major advertising on the big screen because of the first reason outlined above.
Alex, regarding your 1, 2, 3 points on the XTS:
1. Yes the XTS is old and thus not strongly advertised. Even when new however, the advertising was bad and didn’t showcase what was good about the car. There was nothing about the roominess or ride quality. Some annoying hip-hop thing I think.
2. Sure, the XTS is one of the few Cadillacs that had a ready-made base of customers, the people who would buy the DTS or any of the prior traditional Cadillac sedans. But that doesn’t mean that they couldn’t grow the base by advertising. Again, this suggests the mentality that the market for roomy, comfortable riding cars will eventually die off. That simply doesn’t square with human physiology. Eventually many of the people who love hard-riding hot-rods today will appreciate traditional American luxury rides in the future. Assuming such cars still exist in the future, and assuming those people can be made aware that they exist.
3. It’s true that Cadillac as a brand is not going in the XTS/DTS direction. It’s hell-bent on remaking the brand as a German wannabe, even if it kills them. But that’s not due to “opportunity”, it’s due to imitation. It’s partly due to having a South African CEO from Audi, and a German marketing manager from BMW, but the problem goes much deeper than that.
Every time Cadillac has decided to pursue the “opportunity” of meeting the German competition, they have hurt the Cadillac brand. The Cimarron was their first attempt to meet those smaller German cars such as the BMW 3 series. Big time flop, hurt the entire brand. The V8-6-4 engine was Cadillac’s attempt to meet the fuel efficiency of the imports – again, a major brand-hurting flop. Then the Catera was Cadillacs attempt to “give ’em a German car”, not only engineered and designed in Germany, actually made in Germany. Cadillac brand hurt once again.
There was the Allante, Cadillac’s attempt to offer a two-seat “roadster” a la Mercedes Benz. Might not have hurt the brand, but did not sell well. They tried again at a “performance” roadster with the XLR, another failure in terms of sales.
Now Cadillac has the ATS. I realize that you love yours, but it’s too much a copy of the Germans. It’s never sold well, even when it was strongly advertised (and the ads were good, I wouldn’t say the same about the car). A recent “shootout” mentioned on these pages showed the ATS-V coming in dead last against the competition in “the segment”. Does that help the brand image?
At some point Cadillac should realize that it does best when it’s actually making real Cadillacs, and it does its worst when trying to imitate the Germans. This is not at all new. It does not need more time and money to “eventually work”. It’s been going on for over 30 years, and in that time Cadillac has gotten lost. One thing is for sure, there is nothing “daring greatly” about copying the Germans. And it hasn’t even been successful in terms of sales. Time to make a modern version of a Cadillac, with real Cadillac (American Luxury) values. Or further destroy the brand.
Alex, I didn’t invent the term “American Luxury”. But there is a distinction between American luxury cars and German/European luxury cars. Whether you agree with that or not. I realize that you and Scott3 feel that there is only one version of luxury, and the German version of luxury is where luxury is at right now. My response is that German luxury is currently in fashion, but there is definitely a distinct American luxury that never went away, and may be making a comeback even now.
Search online for the title “2017 Lincoln Continental: A Full-Fledged Luxury Car Worthy Of The Classic Name” and you’ll find this from Forbes magazine (November 2016):
“… For too long Ford and GM have tried to produce American versions of European luxury cars. Everything from alphanumeric badging to a fixation on downsizing and stark design suggests U.S. automakers want to emulate their counterparts from across the pond. The revival of the Continental nameplate, with it’s distinctive exterior, commanding size and roomy interior, indicates Lincoln is ready to offer a modern version of the American luxury sedan. Image that! And not a moment too soon.”
If the XTS were discontinued customers would switch over and buy a CT6 , I don’t agree with that statement . Like it was stated the traditional Cadillac customer is shopping for something completely different than what is offered in a CT6 . These are two totally different segments . That traditional Cadillac customer wants that traditional Cadillac ride , not something that leans towards a more German experience .
Plus just because that is where Cadillac is headed with all of their cars by no means is that traditional loyal Cadillac buyer going to by something that they don’T want just because that is all that is offered and will go across the street to visit their local Lincoln dealer and the loyalty that once was results in another lost sale / customer .
That attitude of ” if we build it they will buy it ” is what helped to kill Oldsmobile and Cadillac is going down that same road . That loyalist is being forgotten in Cadillacs newer product scheme . And as bad as some think the ol’ DTS was , Cadillac sure did sell a bunch of them . If you look at AutoTrader or other sites you will have a difficult time finding a good one that doesn’t have 200,000 miles on it .
When the XTS does get it’s update will it then be called a CT5 ? And is that counting as one of the ” new ” product coming every six months ?
I also believe part of the problem the CT6 is having is it’s price when you compare it to the XTS , and the biggest problem for any luxury car ( as we all know ) is the popularity of crossovers and SUV’s .
JMYO .
” new ” products coming from them every six months ?
The bottom line here is that “traditional Cadillac customers” are in market for a large, comfortable and luxurious sedan. Those are their priorities, almost verbatim. The fourth priority is having AWD in snowy regions. The XTS fits that role, as does the CT6.
These buyers are not splitting hairs about ride quality, and you would be extremely hard-pressed to prove that the ride of the CT6 is in any way inferior to that of the XTS. I’d be willing to wager money that if you took off the badges and had typical XTS buyers drive the CT6, they would like it quite a bit. What’s keeping them from switching is the higher price of the CT6.
Furthermore, the Cadillac loyalist is NOT being forgotten at all. That’s why the XTS is staying around with a refresh. To those who love to hark on JDN, that is a decision of his leadership… so be happy.
As I have stated in my comment above, this is not a problem of either or… and XTS fanatics would do well to realize that this is not about a battle between the CT6 and XTS. Both occupy different spaces and it just so happens that the market for XTS-like vehicles is rather small, while the market for vehicles with “more German” (as your put it) driving attributes is significantly larger, which is where the opportunity lies for Cadillac and GM to make a dent and make really good money. That does not mean that the XTS need to go away or should be discontinued. Again, not a battle, and definitely not an “either or” scenario.
Lastly, the XTS update should arrive for the 2018 or 2019 MY. It is not being renamed to CT5 at far as I know.
Alex, maybe coming out of an ATS you fell that the CT6 rides the same as the XTS, or even the DTS, but the reviews say otherwised.
From “Car and Driver”
“… its ride only approaches plush on good roads, and after a few hours of feeling every ripple on the not-so-good ones, we might be willing to trade the CT6’s magnetorheological dampers for air springs and conventional dampers. ”
From JD Power “Power Steering”
“Normal, Sport, and Snow/Ice driving modes adjust the car’s response, but even in Normal mode the CT6 feels too taut and stiff. Choose Sport mode and the steering is excessively heavy while the suspension delivers an almost brittle ride quality. Cadillac would do well to calibrate a Comfort driving mode, one supplying gentle throttle tip-in, light and effortless steering, and the wafting ride that affluent passengers may prefer.”
Drew — I really feel that I should clear up a few things here, as your comment (whether on purpose or not) attempts to make it seem like I’m some ATS owner/fanboy who knows nothing outside of his sporty compact.
The fact of the matter is that I am an automotive industry professional who also happens to own an ATS. I have worked at tier 3 and tier 1 levels, driven validation vehicles and captive fleet test cars, and my experience in and intricate knowledge of this business enables me to have a deep understanding of the industry.
My goal here isn’t to defend my qualifications or mastery of my profession, but it’s to tell you that I can differentiate between even the slightest of differences in vehicle driving characteristics by the seat of my pants, regardless of whether I’m coming out of an ATS-V or a Fleetwood. I should probably also mention that I drove an XTS for 6 months while working at General Motors, which enabled me to have a very profound understanding of the vehicle.
So back to the topic at hand: there is, in fact, a difference in the ride and overall driving experience of the CT6 and XTS. I never said that there wasn’t. What I’m positing is whether the consumer, having driven both cars back-to-back, pick the XTS over the CT6, or vice-versa (all other things, like price, rebates, incentives, and equipment being equal)? That’s is the question.
Personally, I really don’t believe that the average XTS customer will feel much of a negative difference in ride quality driving a similarly-specced CT6. These are not automotive journalists (who you love to hate on so much in your comments elsewhere) or industry professionals wer are talking about, who are analyzing every single detail. These are people who can barely program a favorite AM/FM/XM station on the radio and have trouble pairing their Bluetooth-equipped phone to CUE. That isn’t to say that these customers are in any way unintelligent; rather, it’s the reality: the average user/owner/driver (these people make up the majority of customers across most industries) is not as intricately involved in the product/service or ownership experience as we (me, you, and other GMA folks) are.
Now, in the far-off yet possible instance, that I am incorrect and average consumers do notice a substantial difference in the driving experience between the XTS and CT6, a simple recalibration of the Magnetic Ride Control system with a softer setting than “Tour” can be easily 1) launched across in-production CT6es and maybe even 2) delivered to already-purchased CT6es as part of a dealer-installed update. The same goes for power steering calibration, since it (like MRC) is also electronically-controlled.
Potential yet completely unproven problem solved. 🙂
Oh, and about the excerpts you bring up. In citing them, are you suggesting that automotive journalists haven’t gone completely bananas over sporty luxury cars? I remember you alluding to this in numerous prior comments.
Alex, no offense – and you have a great website here, so thanks for that – but the attitude of “I’m the professional so I know better” is what has gotten Cadillac in trouble in the first place. Yet if Cadillac’s professionals really did know better, they’d be making the cars that Americans want right now (including SUVs), they’d still be the top selling luxury brand in the USA.
I’m not an automotive “professional”, yet I can tell a big difference in ride quality among various car models, and it matters to me a lot. And I believe it matters to a lot more people than you believe it does, for example almost every person I’ve driven in my DTS has commented positively about the plush “riding on a cloud” ride quality, without any query or prompting from me. Yet Cadillac does not even try to sell cars on ride quality anymore, which I think is a big mistake, so most customers under 45 don’t even know what a plush ride feels like or that it’s even possible.
It’s true that I don’t like the fact that most professional auto writers prefer hard-riding “sporty” cars that they can take through winding mountain roads at high speeds, or pretend they are NASCAR drivers, to cars with plush rides (that they often call “floaty boats”) – AND that they push those opinions on the public via their overall ratings. I don’t mind however if they make a distinction between plush riding and sporty driving cars, as observations rather than letting their preferences bias the overall review
You’ll note that in the reviews I’ve quoted, the reviewer is not expressing their personal preference in cars, but merely observing that some drivers are not going to like the ride of the CT6 – it doesn’t mean that they don’t like it themselves. I could do the same thing, I could put a car through a track test and then note that it does well (or poorly) as a sport-driving car, without noting that I personally have no interest in such a car for my preferred style of driving. So there’s no irony in that I don’t like it that professional auto writers have been pushing the public to sporty-riding cars, yet some of them will still make honest observations regarding the ride values of others.
As far as recalibrating the CT6 to a softer riding setting, for one thing I’m not sure that would truly yield the classic “Cadillac ride” the that brand should be selling. But the fact is that Cadillac is not offering it right now. I don’t think there will be many customers thinking that they’ll put up with a harsh ride now, with the assumption that Cadillac will retrofit that car with a plush ride in the future. Especially when Cadillac is making no such indication now.
Those who prefer a plush ride don’t want to be bothered, or they don’t have the vision/knowledge to make it happen. If they go for a test drive (or are in a friend’s car) and don’t like the ride, they’ll just take their business elsewhere, without looking into customization. Believe it or not, THAT’S the mentality of a vast swath of the general public. And Cadillac is missing those sales with their “we know better” attitudes. If Cadillac knew what it was doing, they wouldn’t have been “remaking” the company for the past 35+ years, and continuing to see sales decline as a result.
Hi Alex, I have a sincere question that I post to you to get information only. You made a reference to the average customer not versed in radio presets and Bluetooth pairing. I ask because of the terrible delivery experience on my CTS last year. From the business office I was turned off to a “delivery specialist”. The car was parked immediately next to the service department. Compressors in service were banging away. I wanted an intro to the car. This is my first experience with CUE.
Delivery was horrible. The specialist barked at me over the compressors. She insisted that my phone was paired. I didn’t want the phone paired. My car, my phone, my call. Period. She refused to move forward until I gave her my phone. She chastised me for not having a list of radio stations for preset.
Specialist refused to allow the cluster to be set up the way I wanted. She barked at me to leave it according to her preferences. The only thing I got from delivery was a pounding headache or 24 hours duration and ear pain of 36 hours duration.
She had the climate control set on meat locker. The windows were locked. I had a heck of a time getting the windows down to offset the AC on the 5 mile drive home from the dealership. I hated that car by the time I pulled into my driveway.
Specialist made it known to me that a perfect survey was expected. I think her only job was survey begging. She was not helpful or pleasant. I never had an experience like that at a Cadillac dealership before.
When the survey arrived in the mail there was much emphasis on phone pairing and radio presets. Has Cadillac gone crazy? Bluetooth pairing and radio presets can be done by the cat nextdoor If we couldn’t figure it out.
I took the car to my personal mechanic a few days later. He went over the car with me. He essentially delivered the car as a courtesy to me. He set up the cluster to my preference and helped with practical information on my new car. I have been back to him a few more times with follow up questions. He always accommodates.
I had one visit to the selling dealer service department for a few issues. The said functioned as designed and tried to talk me into trading it in on another new car.
I scheduled service with a different dealer. The new dealer made things much better. I will return there for future service. Selling dealer is a standalone Cadillac dealer. Second dealer sells 19 marques.
I read a lot about Cadillac improving the dealership experience. My primary interest when I visit a dealership is good service for my car. If I want lattes and WiFi I can walk to Starbucks with a five dollar bill.
The delivery and service experience with the selling dealer is probably an anomaly not representative of Cadillac dealers. How will Cadillac improve the dealership experience if they are hung up on phone pairing, radio presets, coffee and WiFi?
I post from genuine concern and some frustration, no agenda. I’ve always loved Cadillac. I think this is the last one but hope it’s not.
Thank you for any thoughts one this.
Regards.