Cadillac cut prices to compete with the Germans

News | January 11th, 2015 by 4
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Cadillac has been chasing BMW since the second generation CTS in both sales and performance. While the latest-gen CTS is getting closer to BMW in …

Cadillac has been chasing BMW since the second generation CTS in both sales and performance. While the latest-gen CTS is getting closer to BMW in terms of quality and performance, it still can’t match the sales. In 2014 Cadillac sold 31,115 CTS’ compared to the 52,704 5 Series’ BMW sold. So now they’re cutting the prices of CTS models up to $3,000.

It seems Cadillac customers seem to be upset with the price increases on their new cars, which are being priced to be aggressive with ze Germans. New customers also don’t seem to be impressed with Cadillac’s newfound quality and performance.

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I don’t think the problem lies with the car itself. The CTS is actually quite a good car and one I would have no problem with driving everyday. It is absolutely a comparable car to the 5 Series. Maybe the interior quality isn’t up to the high standard set by the Bavarians, but other than, the CTS is a fine vehicle.

I think the problem lies with the badge on the front. People have a problem with plunking down BMW money but getting a wreath and crest on the front instead of a roundel. BMW has been making phenomenal luxury vehicles for decades now and Cadillac has been making well…crap really. People still remember the Seville is my point. No one wants a $50,000 Seville.

BMW may be making cars that push the merits of their Ultimate Driving Machine moniker lately, but people still associate the brand with quality and performance above most others. Cadillac is nipping at BMW’s heals though, and I’d argue more so than any other luxury band. So BMW better be prepared to keep making the quality of cars that people know and love.

4 responses to “Cadillac cut prices to compete with the Germans”

  1. Sohrab O. says:

    Not sure I buy that they are nipping at BMW. In 2014, BMW sold 1.8 million cars. Caddy did 260k.

    • JPT says:

      SALES NUMBERS DOES NOT EQUATE TO THE QUALITY OF THE CARS!! Which is what the author was talking about…re “nipping at heels”. I think they are more than nipping and already caught Bimmer with the ATS/CTS. They are just as good as the Bimmer, even better in some respects and of course not as good in others. But the author is correct that Caddy’s problem is their brand. It’s a brand that GM tarnished over years of neglect and downright incompetence and it will take years to fix it no matter how good the cars get. Gotta fix the brand. This requires a consistent effort in regards to product , price point, communication(read advertising), and customer experience (dealers and service). So far they only have the product right…..Maybe the price. They also need to plug the holes in their lineup.

  2. Enjoying Life says:

    I have to laugh at the tag line about the quality of the Cadillac being the same as a BMW and in the middle of the article, the author states the interior may not be up the same standards – so was is it? New GM, old GM, same old crap – from a former gm driver who test drove a BMW and never went back.

  3. George Kafantaris says:

    “The CTS is actually quite a good car and one I would have no problem with driving everyday. It is absolutely a comparable car to the 5 Series.”
    You bet.
    This is why “Cadillac is nipping at BMW’s heals … more so than any other luxury brand.”

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