Cadillac has posted a record-breaking average transaction price (ATP) for the second quarter of the 2021 calendar year, up to $67,488. The new record tops the previous record from 2019 by roughly $7,000.
According to a recent report from Cox Automotive, the boost in Cadillac ATP was driven by sales of the all-new 2021 Cadillac Escalade and Escalade ESV luxury SUVs, both of which recorded ATPs greater than $100,000 for the first time during Q2.
The ATP figure of $67,488 for Cadillac during Q2 of the 2021 calendar year is a substantial $8,894 more than the luxury brand recorded in Q1, during which the ATP for Cadillac was $58,594.
Per the Cox Automotive report, Cadillac sales grew 55 percent to 36,129 vehicles, which more or less aligns with the broader market increase. Cadillac reported sales volume of 23,296 units during Q2 of the 2020 calendar year.
“The profit-generating Escalade and Escalade ESV had triple-digit sales gains despite puny inventories throughout the quarter,” Cox Automotive reports. “So did the CT4, which had production cut during the quarter. The XT5 was Cadillac’s volume leader with 10,573 sales in the quarter, up 83 percent.”
Additionally, Cadillac cut incentive spending, as did the rest of GM’s U.S. brand lineup. Cadillac incentive spending was decreased by 22 percent, with the average incentive amounting to $6,136. During Q2 of the 2020 calendar year, Cadillac incentive spending averaged out at $7,882.
Although Cadillac’s ATP was up substantially during Q2 of 2021, General Motors has been forced to reduce production due to the ongoing global microchip shortage, impacting available inventory. That said, GM’s U.S. sales were up 40 percent during Q2, with 683,696 units sold. GM’s market share was set at 15.5 percent, a decrease compared to the 16.6 percent recorded a year prior. GMC and Buick had their highest sales numbers in the last six years for Q2.
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Comments
Cadillacs Q2 ATP’s were ~16K higher than Lexus and 22K higher than Acura. Chevrolet had higher ATP’s than Acura. The Sierra ATP’s were 12K higher than the Tundra and 5k higher than RAM. I could go on….
The Escalade has an interesting story. What started out as a product plug for the Navigator became cult status in a matter of a mere 3-4 years after its debut. Fast forward a few more years (mid-2000s), and the Escalade ALONE established a profit center for GM that has never looked back. The 2007 Escalade generated so much profit per vehicle with little or no incentives that its revenues paid for its tooling costs in 4 months. Nice job, GM, on doubling down what makes an Escalade an Escalade for 2021. Please implore this approach on the rest of the Cadillac lineup and not only will sales follow, but so might increased ATPs.
Thankfully this vehicle sells itself because Cadillac has shown time and time again it can’t manage or market itself. Let’s face it, Chevrolet does all the heavy lifting for this platform. When your tooling cost consists of a dashboard it should pay for itself in a week.
Formula for success . Big ,bold ,beautiful & a NAME to give it a personality.
Too borrow a paraphrase an ad campaign from arch rival Lincoln ,years ago . ‘ Escalade is what a luxury car ( SUV ) should be ‘.
Originally Cadillac did not want it .
The dealers getting creamed by the Navigator demanded it & Cadillac loyalists .
In recent years its become the prestige legend of the once most desired prestige car in the USA and aspiration of the world .
Formula : Cadillac needs bold ,brassy ,names and swag = HIGH SALES ,PROFITS & PRESTIGE ,LOYALTY.
It’s nice to see America manufacturing live up to American manufacturing.
Big deal all they sell is Escalade
Escalade sales only…. Although this is good news it just highlights how non competitive the rest of the lineup is….
The Cadillac lineup is the WORSE in the companies long legendary history .
The Cimarron 4 & 5s are a disgrace to the brand & will be remembered as the biggest flop in the what is left of the Divisions history .
The only thing they have worthwhile is the Escalade.
Customers are a lot smarter then the people making these decisions are .
They should of dropped Cimmeron 4 & 5s & retained tge excellent & beautiful CT – 6 ,with a crossover & convertible based on it .
But ,that makes to much sense & has to much class .
I am a true GM fan, but I am very disappointed in Mara Barra earning call speech yesterday. I listen to it twice. Her whole talk was on EV/AV. She talked on and on about GM investment in electric autos, she did not mention one time about GM investment in its ICE autos. There are plenty of customers that are not ready to jump into electric autos. I for one will not be buying an electric auto for at least the next 7 or 8 years. Listening to her it sounds like she does not care about future ICE autos purchasers. What about the customers that want to continue with ICE autos. All of GM’s earnings is coming from its great ICE autos and to keep its lineup great, GM will have to be committed to future investments into them. GM earnings got knot down because of recalls for its E/V Bolt. not only losing money on each sale, now taking profits from its ICE autos to cover warranty recalls on something GM do not make any money on in the first place. Please GM do not forsake us the future ICE customers.
Higher ATPs= less value for the consumer. Supply and demand have almost everything to do with this, not that Cadillac is such a superior product.
Once you learn how dumb the average consumer is it gets easier to steal their money. Go America.
Good to be American
You know it doesn’t cost near a Hundred thousand to build an Escalade. Same with a Tahoe.. why so much? Because you can? Really America and the world! I see stupid everywhere!! LMAO
Cadillac the Standard of the World, not any more. Now the crooks of the world
What’s the competition? Lexota? Nisfinity? Hondcura? GenKia? All are posure badge engineered brands that make fake luxury slotted below Cadillac and Lincoln. So congrats to you Cadillac.
What Cadillac ? They don’t have any prestige ,except for the Escalade anymore .
They offer NOTHING ,but two small Camaro platform based cars .
No commercial chassis , no large sedans ,no convertible .
Soon ,they go the way of Pontiac & Oldsmobile.
It did not need to be this way .
The stupid ,classless people ,with no understanding of what a legacy brand is ,are killing them.
You must have your head in the sand I am a dealer in a large metro market and represent all brands you mentioned Cadillac is at the absolute bottom of the competition