Cadillac incentive spending plummeted nearly 28 percent in Q1 2023 on a year-over-year basis, a landing well below Q1 2022 figures.
According a Cox Automotive report, the average incentive offered on a Cadillac vehicle sold in the U.S. in Q1 2023 stood at $2,800 per vehicle, which was down from $3,871 per vehicle in Q1 2022. The average incentive spending across all four GM brands in the fourth quarter of this year fell three percent to $1,908 per vehicle.
In contrast to incentives spending, Cadillac sales performed quite well, increasing almost 29 percent from 28,261 units in Q1 2022 to 36,321 units in Q1 2023.
Sales Results - Q1 2023 - USA - Cadillac
| MODEL | Q1 2023 / Q1 2022 | Q1 2023 | Q1 2022 |
|---|---|---|---|
| CT4 | +43.26% | 2,712 | 1,893 |
| CT5 | +37.39% | 4,593 | 3,343 |
| ESCALADE | -14.03% | 5,523 | 6,424 |
| ESCALADE ESV | -9.21% | 3,705 | 4,081 |
| LYRIQ | * | 968 | * |
| XT4 | +83.00% | 6,773 | 3,701 |
| XT5 | +45.90% | 7,285 | 4,993 |
| XT6 | +25.98% | 4,762 | 3,780 |
| CADILLAC TOTAL | +28.72% | 36,321 | 28,216 |
Sales of the Cadillac XT4 performed quite well, posting exactly an 83 percent increase to 6,773 units sold in Q1 2023. Next up was the Cadillac XT5, which saw an impressive 46 percent increase to 7,285 units in Q1 2023. In fact, almost every single Cadillac product saw an increase in sales besides the Cadillac Escalade, which saw a 12 percent decline to 9,228 units sold in Q1 2023. It’s worth noting that the Cadillac Lyriq wasn’t available during Q1 2022, and thus doesn’t have any figures from that timeframe.
Overall, total GM Q1 2023 sales in the United States – which include Chevy, Buick, GMC and Cadillac – increased more than 17 percent to 599,187 units. That’s a noticeable improvement over GM Q1 2022 sales of 509,108 units.
The average incentive spending for GMC stood at $1,793 per vehicle in Q3 2022, down more than 17 percent from the same time period last year. Meanwhile, both Chevy and Buick incentive spending increased, rising exactly seven and almost four percent, respectively, to $1,846 and $2,096 per vehicle, respectively.
While incentive spending did decrease as compared to the same timeframe last year, due to slowing demand and increased supply, overall GM incentives were still up from Q4 2022. It’s likely that this trend will continue moving forward.
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Comments
This is confusing. What is being spent? Define incentive spending and what it means for a brand – whether spending going up or going down is good or bad for the brand.