Who Is In Charge At Cadillac?

Cadillac needs to stand firm on pricing as long as they feel their cars are worth the price, feature for feature, relative to the competition.  Let the people hunting for a deal on a luxury car go to Buick or get an Impala.

Cadillac's primary goal is NOT sales volume, but profit. 2% is no where near motivation to write an article over (...unless of course; it's a domestic brand).

I agree with the comments above, I just hope they get a Auto person that has passion about building world class luxury cars and SUV's!

The incentives have favored new customers over existing customers. Honestly, if I can't get the same deal as the next guy then I will look at other brands. If Cadillac isn't loyal to me they shouldn't expect me to stick around.

The Cadillac brand has lacked leadership and focus for the past 10 years or so.  They started on a plan in the early 2000s to dump the FWD boats and bring out the CTS, the first SRX, the STS and XLR.  The idea was great, a pair of rear drive sedans to take on the Germans, a badly needed crossover giving them an SUV priced below the Escalade, and a convertible halo car.  The execution was just poor.  Now Cadillac is sort of back to square one, the ATS is getting crushed by the Germans and the IS350, so they missed the mark there.  The CTS and XTS cost the same, similar to the failed STS-DTS strategy of 10 years ago, and they have no convertibles or sports cars.  Cadillac doesn't have any hybrids or diesels either so they are missing on the "green" crowd, with the exception of the ELR which no one is buying.

Lexus has loads of hybrids which can sucker people in, and it makes it seem like Lexus is cutting edge technology because they were the first luxury company doing hybrids.  The Germans have a wide range of body styles and engines to hit every niche there is.  You can't build a luxury brand on gas V6 powered sedans: see Acura, Lincoln and Infiniti for proof.

As far as profit margin goes, it is hard to say if Cadillac is successful because GM doesn't seem to break down the numbers of where the money is made.  Audi makes about $5,000 profit per car, Porsche makes a staggering $23,000 in profit per car sold which is an 18% margin.  A 10% margin is what the luxury brands strive for, Mercedes actually has the lowest profit margin of the German brands, they have been between 6-7% the past few years, but they also aren't dressing up Volkswagen's like their neighbors are.

Moral, sometimes you build and they still don't come!!