2014 Cadillac Srx Premium on 2040-cars

Auto blog

Why Cadillac needs a real truck in its lineup

Premium brands such as BMW, Mercedes-Benz, Lexus, and Cadillac sell vehicles that cover the spectrum from car to crossover to SUV. But trucks? They remain the last frontier when it comes to luxury brands. These days Chevy, GMC, Ford, and Ram sell cheap, bare-bones work trucks alongside loaded models that top $75,000. There is a reverse elitism that comes with this sales tactic. A brand gets to reflect a rugged working class lifestyle with the emblem up front, while what's behind it costs as much as a small house in middle America. But Americans who spend big money on cars and SUVs have always gradually tailed towards luxury nameplates over time. Everyone knows what an Escalade is, and thanks in large part to that image the Escalade is now the best-selling fullsize luxury SUV in the USA. Cadillac's flagship model, along with its midsize luxury crossover, the SRX, routinely outsell the competition from Audi, Mercedes, and BMW, not to mention Ford's Lincoln brand and most of the Japanese rivals. With trucks already dominating overall sales and headed into the pricing stratosphere, I believe it's time for Cadillac to consider a fullsize truck. And no, not a lipstick version that merely takes a Chevrolet Silverado pickup and throws in a few leather seats and some slight interior touches. That experiment already failed both for Cadillac (the Escalade EXT) and for Ford's Lincoln brand (Blackwood, Mark LT). Cadillac is an American brand that currently focuses a ridiculous amount of energy and resources trying to compete with European car offerings. The brand needs to create the Cadillac of trucks. Head honcho Johan de Nysschen has been blunt in his desire to "restore Cadillac to the pinnacle of global premium brands, not in sales but in aspirational brand character." This sounds well and wonderful. But the present problem in achieving this goal is that, on a global basis, Cadillac is a failed brand. Look at Europe, where Cadillac has sold so poorly in recent years that former Soviet manufacturer Lada managed more new registrations in 2014 by a factor of more than four to one. Cadillac is an American brand that currently focuses a ridiculous amount of energy and resources trying to compete with European car offerings. After more than 20 years of Cadillac models selling themselves as import killers, the only one with sustained success has been the CTS, and even that has been a marketplace loser for the last several years. The CTS-V?

Why Cadillac is willing to lose 43 percent of its dealers

Cadillac is offering about 400 dealers in the United States a lump sum of money to close down. That represents over 40 percent of Cadillac dealers in America. Offers start at $100,000 and top out at $180,000. The average offering is around $120,000. According to Automotive News, Cadillac chief Johan De Nysschen estimates it will cost the automaker around $50 million to close these dealers. Any dealer that chooses to remain open will have to submit to Cadillac's ambitious Project Pinnacle, which will divide dealers into incentive categories based on how many units they sell. "Every single Cadillac dealer will have the potential to earn significantly higher profits than they do today," says De Nysschen. Dealers have until November 21 to decide if they want to take the cash or submit to Project Pinnacle. A logical question: Why is Cadillac willing to spend $50 million to close down 43 percent of its dealers? First, GM's luxury brand has way more dealerships than it needs. Second, the 400 dealers with offers to shutter each sold 50 or fewer vehicles in 2015, representing just 9 percent of its sales volume in America. So, while closing these smaller dealerships may have a small initial impact on sales, it's not going to be a major hit to Cadillac. Related Video: News Source: Automotive News - sub. req.Image Credit: Gary Cameron / Reuters Cadillac Car Dealers Luxury Performance

De Nysschen says Cadillac will be ready for a $250,000 model in 15 years

Cadillac president Johan de Nysschen has some very, very lofty goals for the American luxury car manufacturer. That's according to a new report from Reuters, where the former Audi and Infiniti exec says that Cadillac is only 15 years away from selling a $250,000 car. "It is too early today for a $250,000 Cadillac," de Nysschen told Reuters at the LA Auto Show. "Fifteen years from now, it won't be." Now, provided de Nysschen doesn't envision a future of hyper-inflation, where an ATS rings up at $200K and a CTS at $225,000, the idea that Cadillac could sell a car worth a quarter-of-a-million dollars in just 15 short years is the very definition of ambitious. That's doubly true when you realize that, at present, Cadillac's most expensive vehicle is the Escalade ESV Platinum, which costs no more than $97,940, while de Nysschen said the upcoming CT6 sedan will be priced "in the 70s." What do you think? Could a Cadillac that costs well over twice as much as the brand's most expensive current vehicle be a reality in the distant future? Or is de Nysschen aiming too high too soon? Let us know what you think in Comments. News Source: ReutersImage Credit: Jae C. Hong / AP Cadillac Luxury cadillac ct6