Why Is Cadillac So Far Behind The Leader In Crossover Sales?
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It’s no secret that crossovers have morphed into the modern day sedan, becoming the most common vehicle body style. Understandably, Cadillac currently fields six different utility vehicles (crossovers and SUVs), including the unibody XT4, XT5 and XT6, the body-on-frame Escalade and Escalade ESV, as well as the all-electric Lyriq. Overall, the luxury marque is performing relatively well in each respective segment that the aforementioned models compete in. However, Cadillac seriously lags behind Lexus in terms of raw sale sales volume.
Cadillac XT4
The outgoing Lexus RX was available in two- and three-row configurations, wherein the Cadillac XT5 competes directly with the two-row RX, while the XT6 takes on the three-row RX L. While XT6 objectively offers a better project than the RX L due to more space than the Lexus, sales figures don’t reflect this. In fact, the Lexus RX is the runaway sales champion in its segment.
Sales Numbers - Lexus RX - Jan - Oct 2022 - USA
| MODEL | YTD 22 / YTD 21 | YTD 22 | YTD 21 | YTD 22 SHARE | YTD 21 SHARE |
|---|---|---|---|---|---|
| LEXUS RX | -5.11% | 80,299 | 84,625 | 100% | 100% |
| TOTAL | -5.11% | 80,299 | 84,625 |
Lexus managed to move 80,299 units of the RX family during the first nine months of 2022, substantially higher than the 33,286 combined units of the XT5 and XT6. In other words, the RX outsold the XT5 and XT6 more than two-fold.
Sales Numbers - XT5 & XT6 - Jan - Oct 2022 - USA
| MODEL | YTD 22 / YTD 21 | YTD 22 | YTD 21 | YTD 22 SHARE | YTD 21 SHARE |
|---|---|---|---|---|---|
| CADILLAC XT5 | -23.97% | 18,894 | 24,852 | 57% | 58% |
| CADILLAC XT6 | -18.79% | 14,392 | 17,722 | 43% | 42% |
| TOTAL | -21.82% | 33,286 | 42,574 |
Cadillac XT5
Now, we must acknowledge that GM does have another entry in this segment – the Buick Enclave. When including this model in the total, the gap tightens, but not quite enough.
Sales Numbers - XT5, XT6, Enclave - Jan-Oct 2022 - USA
| MODEL | YTD 22 / YTD 21 | YTD 22 | YTD 21 | YTD 22 SHARE | YTD 21 SHARE |
|---|---|---|---|---|---|
| CADILLAC XT5 | -23.97% | 18,894 | 24,852 | 34% | 33% |
| CADILLAC XT6 | -18.79% | 14,392 | 17,722 | 26% | 23% |
| BUICK ENCLAVE | -31.56% | 22,814 | 33,336 | 41% | 44% |
| TOTAL | -26.10% | 56,100 | 75,910 |
With the inclusion of the Buick Enclave, the total GM sales figure comes out to 56,100 units, still around 25K units shy of Lexus’ 80,299.
So, why is the Lexus RX so much more successful over the aforementioned GM models? Here’s what it comes down to, in our opinion.
2021-2022 Lexus RX350 F-Sport
1. Brand Image
First, Lexus enjoys a competitive advantage of carrying an image associated with high levels durability and quality, piggybacking on parent company, Toyota. As a result, customers may feel like they’re getting a better vehicle by choosing a product that originated in Japan.
2021-2022 Lexus RX350 F-Sport
2. First Mover Advantage
The RX, which launched in 1999 as one of the first models to create the luxury crossover utility vehicle space along with the Mercedes ML-Class, enjoys a first mover advantage. As such, the vehicle has more years on the market, more customer awareness, and a potentially bigger and/or more loyal customer base – all benefits typically associated with being a first mover.
3. More Robust Supply Chain
Additionally, it’s possible that Toyota has been prioritizing production of the Lexus RX family in light of parts and components shortages that trace their roots back to the COVID-19 pandemic. The Lexus RX, along with the Lexus ES, are key, bread-and-butter models for Lexus.
By comparison, it’s well known that GM prioritized its limited amount of supplies, including but not limited to microchips, to its key Cadillac vehicle – the Escalade, at the expense of XT5 and XT6 production. It would be interesting to see how XT5 and XT6 sales would stack up to those of the RX during regular, uninterrupted production.
4. Superior Product
This one isn’t as clearcut as the others, but we’ll say it like this: the Lexus RX offers a regular ICE-powered version alongside a very compelling hybrid model that offers 308 horsepower and a very respectable 30 MPG combined (31 MPG city, and 28 MPG highway). By comparison, both the XT5 and XT6 do not offer a hybrid, instead resorting exclusively to non-electrified internal combustion engines.
Next-generation Lexus RX
Before signing off, here’s a gentle reminder that the next-generation, 2023 Lexus RX will only be available as a two-row model that rivals the XT5. The three-row variant, meanwhile, is expected to be served by a different model / nameplate.
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Like someone else said, image. Most of the people buying these are not in the old WASP category anymore, and they have no loyalty to American brands. I think the SRX had an edge with it’s old school platform. Also, the styling of the XT$-5-6, can’t tell one from another at 20 feet.
Many U.S. Consumers are actively looking to detach from China and GM is making it increasingly difficult for their life long customers to do that and subsequently many are turning away to other products
Because they build overpriced garbage and everyone has figured that out.
The Cadillacs aren’t bad crossovers in themselves, but they do seem like phoned-in efforts. It doesn’t help that Cadillac has done basically nothing to update them since they came out and offers no electrified and/or higher-horsepower options.
Quick takes…
XT4 – styling isn’t awful but isn’t grab-you-by-the-collar-good either, needs a more premium powertrain to justify a premium price point; the concept could have been so much more if executed on Alpha, or anything RWD-biased
XT5 – it’s not bad on the whole, but just OK, and getting stale fast; I see styling cues that harken back to ATS and earlier – not inherently bad, but so 10-years-ago
XT6 – front-end design is it’s strength, but after the A-pillar all I see is a 3-row SUV that looks familiar (Subaru? older Traverse?), but not in an upscale kind of way; as others have said, imagine what could have been with something Omega-based
These are ‘competitive’ because they’re offered for sale – they compete – but they don’t sell in quantity because (IMHO) they’re not terribly compelling, or have a shortcoming that undermines their most compelling feature(s). If their successors get the same attention to detail that Lyriq’s (XT5 successor) development did, there’s at least hope for Cadillac. I can’t imagine that any MCEs will make much difference with sales numbers.
I had 2 Cadillacs, both SRX. I wanted reliability at my age. The first was 2009 with the 3.6 and the never ending timing chain issues. They knew the problem but were too cheap to fix it and kept throwing band-aids on it. Gave Cadillac a try again in 2012, warranty went from 4 years to 3 years -wonder why? – and this time had issues with heated seats and rear axle. Blamed the seat issues on “someone too heavy”. The wife weighs under 100#. The rear axle check light came on. Cadillac dealer said sorry about your luck. Took it to Buick – GMC garage and said they had parts in stock to fix it – which means to me GMC knew there was an issue with the all wheel drive. Again if you have an issue – fix it. Anyway those will be the last two I’ll ever own and won’t consider them ever again.
I’d choose Cadillac over Lexus…any model…every time!
When you are serious about competing in a certain segment of the marketplace as GM should be (but isn’t) you simply take the competitors product, drive it, tear it all apart and reverse engineer it but first you find any weak links (they’ll have one or two I’m betting) and fix them, then you “build your product better than they do”! It’s not hard to do, the Communist Chinese have been doing that for years, building better military weapons by using our stolen designs they finding any weak links and fixing ’em! The end product after reengineering design flaws should give the car buying public a better product if you follow the basic plan to build a better product, however if you are General Motors, you first design and build a product that you want the public to buy. So now after you check out the competitors product and find ways to cheapen everything they’ll use to increase it’s desirability and reliability GM will start making that product that is “just good enough but never better than the competitors they’re trying to compete with AND trying to outsell!
I’ve seen this happen so many times before with various GM products…GM will wait for a certain product line to hit the marketplace, watch closely to see how it does, then make a quick decision to build a similar product, only cheaper in every way, from design to production, and then try to tell the world “here you go, we sweat the details please buy our product”!
Do I have to name some of those products or can you think of them on your own…okay, lets take the latest foray into the world of EV’s. Ford has had so many “got you” products before GM that it just staggers the imagination…the Mustang Mach E, the Maverick, the Bronco, the Lightening all “out there” ready for purchasing. So far, GM has been trying to push it’s “over the top” 3 ton, $100 Grand plus GMC Hummer…how many of these are GM really going to sell before they have saturated that small segment of the marketplace? Not many…the Hummer will find it’s niche eventually, the very rich that can afford this behemoth, but the numbers will drop and within a few short years, the Hummer will be gone, again!
You have to be innovative, and you have to produce products that people want and need and foremost, they have to be reliable and they have to have the automotive editors jumping for joy saying how great this product is, not just “it’s ok but isn’t any better than the rest”…Hogwash! Lets face it, GM has been building vehicles that are “just good enough” to sell in the marketplace in numbers that return a small profit right away, but in the long run, They seem to always be playing a “catch up” game compared to other manufactures and this sort of business plan will never lead you to the top of the charts in any segment of the market. After seeing the sales figures posted in this article…I rest my case. Wake up GM!!!
Whatever the styling is, Lexus has a good reputation that has been passionately shaped and protected by Toyota. GM has spent billions to ruin Cadillac’s reputation because they cant figure out a way to LINE ITEM reputation on financial flowcharts so its a non existent concern. Lip service, corporate word salad BS, cost cuts, hemogination and mainstreaming are the priorities that dominate Cadillac making it little more than a punchline punch line. Cadillac.. A Chevrolet in fancy discount cloths…
Sales are down because dealers don’t have any. Tried to find one, I would have to order it and wait. Not going to do it.
Boils down to quality and more importantly reliability, whether true or not Toyota/Lexus, also Honda/Acura are regarded as the most reliable vehicles on the road period. consumers with any common sense want reliable low-cost maintenance to operate on a daily basis, GM/Cadillac has lost their woke way and with MB at the helm will not find it anytime soon
You’re so triggered. The “woke”’ comment shows how ignorant you are
Another way to put this is that the Escalade his all 4 marks here:
1. Brand Image- Absolutely
2. First mover- it’s really second after Navi, but who’s counting?
3- Supply chain- maybe
4- Superior Product- Absolutely. OLED dash has been a homerun!
So… leverage the Escalade “magic” into the crossover product. Easier said that done, but incorporate ALL tangible and non-tangibles that make the Escalade a winner into the XT6/5/4 INSTEAD OF TARTING UP A LOW-END CHEVY SUV.