The should reverse Escalade them. Throw on a Chevy badge, get rid of some luxury and sell them for $10k less
The should reverse Escalade them. Throw on a Chevy badge, get rid of some luxury and sell them for $10k less
I can't find the direct quote I'm referencing, but:
Autoweek: "After a hot 2013, Cadillac sales have slid this year as higher sticker prices repelled customers, leading to gluts of CTS and ATS sedans on dealer lots"
Cadillac must be willing to forgo some traditional buyers as it works to attract the higher-end clientele it's now courting with a revitalized vehicle lineup. "We cannot deny the fact that we are leaving behind our traditional customer base," de Nysschen said. "It will take several years before a sufficiently large part of the audience who until now have been concentrating on the German brands will find us in their consideration set."
Some Cadillac dealers and market pundits blame GM's strategy of pricing the vehicles head-to-head with BMW, Mercedes-Benz and other luxury leaders. They say steeper sticker prices -- some redesigned 2014 CTS models go for more than $10,000 above a comparable '13 -- have turned off buyers.
"Either you have to bring your volume aspirations into alignment with reality and accept that you will sell fewer cars," de Nysschen said. "Or you have to drop the price and continue to transact at the prices where you were historically."
I maintain that the logic of that last bit is nonsensical. It's the equivalent of beating your smart kid until his grades are down to the level of your dumb kid.
Originally Posted by thesameguy
And I'd rather have the Caddy over anything that BMW pisses out right now. IMO all the cars from BMW are shit, and current reports seem to back that up on the reliability side of things. Issues like engines crapping out inside of warranty, electronic systems having massive issues when only a few years old.
And if this new strategy fails then just how fucked is Caddy?
They can always drop the price after de Nysschen is gone.
It's not really fair to compare previous CTS prices to current ones, the new one is a larger car. The old CTS tried to split the difference between the 3 series and 5 series, the new one is clearly aimed at the 5 series as the ATS is now taking the 3 series on.
And sales dropped on the two also because they're no longer brand new models. They just need to adjust their production schedules to the current demand and continue to let the Escalade pay for everything until consumers come around. If they never do, kick out JdN and try the next plan.
Yep, pretty much. Really, how much damage can actually be done to the Cadillac brand? Nothing could worse than the '80s, and they've survived this long!
Um, this is contradictory. If the 'new' one is a larger car, then it must be the new model.
They raised prices on the old model before it finished. And now even more on the new ones.
"Let's raise the price for exclusivity! It will be more exclusive because fewer people will be willing to spend that much money on it!" Genius.
The price jumped in going between the old style 2013 CTS (which was sized between the 3 and 5 series) and the new style 2014 CTS (which is at 5-series size). The new style CTS has been on sale since October of 2013, and the ATS has been on sale since August of 2012. Any pent up demand for the new hotness is now over, and you have to go with selling purely based on merits and not the fact that certain people were waiting for them to come out. Similar to how the Hummer H2 had awesome sales the first year, and then nothing, because the people that had been waiting for them all got one and not many got in line behind them.
Having the prices of new cars be similar to the prices of the competition which they are now closer to matching in specifications and features is not a bad thing. It would be great if they undercut the competition by 5 grand, but they think having lower prices will hurt sales in the long run because it will hurt their image (or at least not raise it from where it was).
I'm not saying it's the right thing to do, but it's what they're doing, and it has seemingly worked before in that segment. And they can ride Escalade profits long enough to find out if it will work.
Get that weak shit off my track
JdN is doing an AMA on Jalopnik, and revealed some small nuggets of info on the CT6: its engines will range from turbocharged 4 cylinder to turbocharged V8, but that will roll out later. Also there will be no manual offered (not surprising).
There's also a brief mention of the sub-ATS RWD car, on the same Alpha platform as the ATS and CTS, which will come in right where the A3 and CLA are pricewise (30 grand).
http://jalopnik.com/ask-cadillac-pre...ing-1687372646
Get that weak shit off my track
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