The 2015 Cadillac CTS is arguably the best sedan in the world so why isn't it selling?
Last month Cadillac sold 2,652 copies of its range topping CTS and that is a terribly low number. It's particularly stark when compared to the 5,119 E-Class Mercedes Benz sedans and 5,517 BMW 5-Series sedans sold. Why are Cadillac's numbers so bad? Simple. They're over charging for their wares.
Cadillacs being very expensive is certainly nothing new. This 1971 Coupe DeVille had a sticker price of approximately $9,300 when the average American was making under $11,000 a year. Cadillac sales in the early 1970's, incidentally, were at record levels.
Today, the average American makes more than $52,000 so that makes the 2015 Cadillac, with an average sticker of $50,000, actually less expensive than a 1971 Cadillac. So, what's the problem exactly?
Well, despite the fact that today Cadillac makes a vehicle every bit the equal if not superior to what Mercedes and BMW is making, if you've got the money for an expensive car, chances are, you're springing for a Mercedes or BMW and not a Cadillac. I know I would and you're not going to find many fans of Cadillac bigger than me. Now, why is that?
It's because General Motors is attempting to position Cadillac in the same league with BMW and Mercedes and price their cars like BMW and Mercedes. That's a big mistake. Y'see, after years of selling horrible cars like this 1983 Coupe DeVille while BMW and Mercedes made great cars, Cadillac completely lost its groove as a super premium brand. Instead of being "The Standard of The World", Cadillac, through their own doing, had only become the most expensive automobile brand that General Motors sold.
This 1971 Cadillac sold in record numbers and was more expensive (in 1971) than a 2015 Cadillac is.
General Motors priced this very fine automobile to be in line with the BMW 5 series and Mercedes Benz E class. That was a mistake. They should have, instead, undercut the German makes.
Today, the average American makes more than $52,000 so that makes the 2015 Cadillac, with an average sticker of $50,000, actually less expensive than a 1971 Cadillac. So, what's the problem exactly?
Mercedes Benz E Class Coupe. Spectacular. Expensive too but no more so than a Cadillac CTS. Which one would you buy?
Well, despite the fact that today Cadillac makes a vehicle every bit the equal if not superior to what Mercedes and BMW is making, if you've got the money for an expensive car, chances are, you're springing for a Mercedes or BMW and not a Cadillac. I know I would and you're not going to find many fans of Cadillac bigger than me. Now, why is that?
Cadillac has a gigantic image problem to deal with and it will take upwards of twenty years to overcome. Their target buyers today still think Cadillacs are old man shit boxes like this '83.
It's because General Motors is attempting to position Cadillac in the same league with BMW and Mercedes and price their cars like BMW and Mercedes. That's a big mistake. Y'see, after years of selling horrible cars like this 1983 Coupe DeVille while BMW and Mercedes made great cars, Cadillac completely lost its groove as a super premium brand. Instead of being "The Standard of The World", Cadillac, through their own doing, had only become the most expensive automobile brand that General Motors sold.
Sorry, America. My money's on a BMW 4 series like this. Even in eye searing golden yellow.
Cadillac has announced that they're reducing prices on the CTS, knocking $3,000 off of trim levels near the top of the CTS range but it's not enough. Not by a long shot. C'mon, guys, you can't all of a sudden start charge super premium prices, realize it's the cause of your poor sales then reduces prices a smidgen. You think $3,000 is going to make me buy a Cadillac over a BMW? Now, if you reduce the price by $10,000 to $12,000 then maybe we'll talk but until then, I'll keep playing the lottery hoping for a windfall so I can buy a BMW. An M4 in case you're wondering. Cheers.
The 2015 Cadillac will make great sense as a used car since its resale value will be much lower than a similarly expensive (when new) BMW or Mercedes.
The 2015 Cadillac will make great sense as a used car since its resale value will be much lower than a similarly expensive (when new) BMW or Mercedes.
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