Cadillac’s U.S. sales may not challenge its German luxury rivals, but it’s commanding higher prices—and that’s a good thing.
Automotive News recently dove into Cadillac sales data and found the average Cadillac sells for $60,366 in the United States. The closest rival, Mercedes-Benz, sells for $56,736 on average. BMW’s figure sits at $54,336 and Audi’s at $50,860. That means for the average Audi sold, Cadillac is selling a car for roughly $10,000 more.
The reason behind the higher transaction prices is simple: Cadillac sells the big-dollar Escalade. The Cadillac Escalade has made up a quarter of the brand’s sales in 2017. Base prices for the Escalade and Escalade ESV are $74,590 and $77,590 before any extra options are tacked on.
Additionally, BMW, Mercedes-Benz and Audi have all pushed into more mainstream segments, which traditionally don’t command high prices. The Mercedes-Benz CLA, Audi A3 and BMW 2-Series—each entry level sedans—all start around $32,000. Cadillac’s ATS sedan is the brand’s most affordable vehicle, which starts around $34,000.
Cadillac has priced its most recent vehicles—the XT5 and CT6—aggressively, but the brand has stated additional variants will arrive to up the opulence. Starting next year, the Cadillac XT4 crossover will begin the brand’s product onslaught. High transaction prices are certainly a good place to start—for now.
Comments
To all the people who say Cadillac is failing or is in the dumpster please this! When you are done please stop giving Cadillac this crap they have been getting for the past few years!
Overprice, underliver. Great business plan unless you want repeat customers and positive word of mouth.
It’s easy to have a high average transaction price when you only have 7 models, sell few vehicles in general and your one $74k+ vehicle makes up 27.18% of your sales volume alone for June 2017. Cadillac sells 7 models and only two start above $50k, the CT6 and Escalade. The Escalade is single-handedly inflating Cadillac’s ATP. Their ATP relies solely on one model they barely update (problematic with the new Navigator existing, a BMW X7 etc. on the way). This will not continue when Cadillac expands their lineup to include substantially more models that will start at lower prices and begin to erode their high ATP. All cars below the CT6 and all crossover/suvs below the XT6 will start under $50k. Compare this to Mercedes which has 24 models, with 7 starting under $50k, and moved 204,000 more units than Cadillac in 2016. MB is only $4k under Cadillac’s ATP. By the end of the decade Mercedes will have the highest ATP, because they aren’t introducing many new models under their ATP. Cadillac, on the other hand, will introduce nearly all of their new models under their ATP. It has nowhere to go but down. It’s silly to even mention ATP when the brand sells so few cars compared to other brands. Not trying to hate on the brand here, just trying to keep it real.
Silly, but got your attention John.
As flagship brands go, it’s Cadillac at GM and it’s doing its job quite well, and as you say, “keep it real”!
Thats good so long as you don’t price yourself out of the market and offer more for more instead of less for more. Just think what they could do if they were across the board best in class.
Cadillacs marketing, is a complete gimmick. Typical driver: Elderly, and almost retired. Cadillacs are POS’s that are overpriced.
Lexus has older drivers. Complaining about them too?
Cadillac Escalades are driven by many young sports stars.
“Additionally, BMW, Mercedes-Benz and Audi have all pushed into more mainstream segments, which traditionally don’t command high prices. The Mercedes-Benz CLA, Audi A3 and BMW 2-Series—each entry level sedans—all start around $32,000.”
They don’t command high prices? Subcompact luxury cars for mid-size mainstream money? If that wasn’t successful, they wouldn’t sell at all.
This is JDN’s goal and has been since he started . Sell fewer cars and sell with higher TAP’s . Opulence is only going to go so far in the car business . I can understand how they are making money on Escalades that are priced at $90,000+.
Not many people will be able to afford such a car payment except a very small segment of the population .
This type of business case works great with a growing economy but once things start to slow or recede , which is the car business ; feast or famine ,things may not look so good .
Building cars so as not to see them in every driveway may work , but you had better hope that you see them in some driveways .
This revival of Cadillac is like a scientists experiment , sometimes it works and sometimes it blows up . Let’s hope it actually works !
Cadillac is destined to be a niche SUV brand in the US.
The sedans will thrive in China. In NA. Escalade could serve a Corvette-like role standing alone.
GM should buy Lucid and fight Tesla.
Caddy aces phys ed. Take that Rhodes scholars!