Incentive spending at the Cadillac luxury brand fell 57 percent in Q2 2022, however Cadillac’s incentives remained the highest of the four GM brands and saw the smallest year-over-year decrease.
Cadillac spent an average of $2,634 per vehicle on incentives in Q2 2022, down 57.1 percent from $6,136 in Q2 of last year. Incentive spending at Cadillac remains higher than at Chevy, Buick or GMC, all of which spent an average of less than $2,000 per vehicle on incentives last quarter. Incentive spending at Buick was down the most, falling 79 percent year-over-year to just $1,077 per vehicle.
Cadillac sales dropped 7 percent to 33,703 units in Q2, although its market share reached one percent, which is the highest level recorded in the past six years, accorded to Cox Automotive. Cadillac CT4 sales were up 14 percent to 2,617 vehicles, while CT5 sales were up 70 percent to 4,171 units, and XT4 sales were up 116 percent to 5,432 units. The Cadillac Escalade saw sales slip by roughly 20 percent, while Cadillac XT5 sales fell by 37 percent. Production of the Cadillac CT4, CT5 and XT4 was heavily impacted by the semiconductor chip shortage, which is part of the reasoning behind the large year-over-year sales increases. GM also recently began deliveries of the battery-electric Cadillac Lyriq and expects deliveries of the crossover to ramp up through Q3 and into Q4.
Incentive spending at Cadillac was high than the GM brand average of $1,705 per vehicle. Cox Automotive says “robust demand” at GM allowed it to slash incentive spending across all four of its brands in Q2, just as it did in the first three months of the year, while its average transaction prices rose five percent to $50,261. This also marked the first time quarterly incentive spending at GM was below $2,000 in recent history, the publication said.