A friend tipped me to a
pretty negative blog post about the
Cadillac CTS Wagon, due to go on sale as a '10 model at the end of summer. It has been on sale in Europe, and Cadillac was going to bring it to the USA.
What started off in an email thread among friends really became a referendum on Cadillac and its role in the "
GM Reinvention" world.
My friend wrote in the email thread, "I really, really wish GM would take Cadillac more in the direction of the Audis, Mercs, and BMWs of the world, but I think they are too afraid. And that's a shame, but I won't give up on them."
I submit that is Cadillac's answer to that wish:
3 comments:
Thanks for the huge response post — you should have left it as a comment!
Starting from the top:
1) Cadillac is aiming at the Euro lux brands, which is the problem. I'm saying to build a better Cadillac for the customers they already have, not to go chasing down M-B, Audi, and BMW. Your friend may want to see Cadillac compete on the world stage, but with only 4,574 (http://www.gm.com/europe/corporate/sales/model/)Cadillacs sold in Europe in 2008, I doubt drivers across the pond are really waiting for a CTS Wagon.
2) Yes, the Cadillac dealer experience is sorely lacking. But that's got nothing to do with the product, right?
3) Cadillac should never race. Ever. Again, delusions of: "We can fight BMW!"
4) "Banovsky wrote is that Caddy is suffering from having customers that it doesn't want, so it shouldn't make cars for them. Instead, it should make cars for a different market and try to woo them." Close, but I was saying that Cadillac has customers its current marketing doesn't reach but should be making cars for them. I give Cadillac due credit for the range-extended electric, SRX, and — heck — CTS Coupe, 'cause coupes are what the brand is all about.
5) "Wrong. They're competing successfully with this car in Europe, it is made in the USA, we export it, and it is a platform that could be a Voltwagen or use the Chevy/Escalade hybrid electro-trans." Nope…Again, they sold only 1,166 CTSs in Europe last year, and GM expects the wagon to be chosen for 1 out of every 20 buyers…which is 5 per cent. That's 58 CTS Wagons at 2008 European sales rates (2009 will be even worse.) In America, they've sold 58,774 CTS models in 2008. Applying the 5 per cent rule again, and you get 2,938 CTS Wagons sold, optimistically, in 2009. Why would Cadillac develop the wagon for under 5,000 sales?
6) You point to Porsche as an example of how little sales are needed to turn a profit. In 2007, Porsche earned at least $15,000 of profit per car sold! (http://www.autocult.com.au/NewsDetail.aspx?id=886) Cadillac should be so lucky.
7) "Gee, when all those folk stopped buying LX500s and M-class Mercs, why didn't we have something in the wagon segment they're all flocking to now?" Those buyers are moving toward crossovers, like the SRX. Cadillac is also planning to downsize the next Escalade (great!), but wagon owners never would have considered the LX570 or M-Class in the first place. Nor will luxury SUV owners consider a Cadillac wagon when their lease is up.
8) Most of the conjecture about Northeastern people was purely for fun. I'm Canadian.
Cheers, M!
You are probably the only Cadillac fan who knows who Randy Pobst is.
MB - I take exception to a few things you've said - and I'm a guy who grew up as anti GM.
That said, I take HUGE exception to #3. Every manufacturer should race!
Oh yes, not sure if you missed it, but Caddy did quite well with the CTS thank you very much! The sports car abomination, not so much!
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