Cadillac News: New Compact Crossover From Cadillac Coming In 2018

[William Maley]

The Cadillac XT5 will be the first model in a new crossover lineup for the brand. Next up is a compact crossover to take on the likes of the BMW X3 and Lexus NX according to Cadillac President Johan de Nysschen. But don't expect it anytime soon. de Nysschen said it would coming out in 2018.

 

Following the compact crossover will be a large crossover that would take on the likes of the Audi Q7 and Volvo XC90. This model is expected in either the second half of 2018 or 2019. Wrapping up the crossover lineup could be a subcompact model that would compete with the BMW X1 and Mercedes-Benz GLA-Class. No word on when we could see that model.

 

Source: Automotive News (Subscription Required)

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[G. David Felt]

Yes I see value in having a Large, medium and compact CUV, I question if they really need to have a subcompact CUV at Cadillac. This is the overlap where I think leave the subcompact market to Buick.

[Drew Dowdell]

Yes I see value in having a Large, medium and compact CUV, I question if they really need to have a subcompact CUV at Cadillac. This is the overlap where I think leave the subcompact market to Buick.

 

If they can get people to pay $30k for a Cadillac subcompact CUV the size of the Encore, more power to them.  the Encore starts at $24k and tops out at around $34k.  That leaves some room for a Cadillac to start at $29,995 + destination.

[Frisky Dingo]

The Encore is far smaller than the X1, no?

[Suaviloquent]

Using a Sonic platform, Gamma to make a Cadillac... I thought we've been here before, Cadillac doesn't have to dilute itself, it can leave this to Buick.

 

Unless they use Delta. The new Delta platform can accommodate AWD sub-frames, so that makes wayyy more sense. It'll give a slightly more vehicle to work with too.

[G. David Felt]

 

Yes I see value in having a Large, medium and compact CUV, I question if they really need to have a subcompact CUV at Cadillac. This is the overlap where I think leave the subcompact market to Buick.

 

If they can get people to pay $30k for a Cadillac subcompact CUV the size of the Encore, more power to them.  the Encore starts at $24k and tops out at around $34k.  That leaves some room for a Cadillac to start at $29,995 + destination.

 

I see the point you are making and as Suaviloquent has stated, if they use Delta and only have it as an AWD version so it truly is a nicer product than the Encore than more power to them to have it and sell. Just do not use the current Encore or a Chevy product rebadged. I still think the market is small for a Full Blown Luxury SubCompact but I have been wrong before.

 

Happy Thanksgiving to you all.

[Drew Dowdell]

The Encore is far smaller than the X1, no?

 

Externally, yes. Internally, no.  That is more a reflection of the excellent packaging of the Encore rather than a knock on the X1.

Using a Sonic platform, Gamma to make a Cadillac... I thought we've been here before, Cadillac doesn't have to dilute itself, it can leave this to Buick.

 

Unless they use Delta. The new Delta platform can accommodate AWD sub-frames, so that makes wayyy more sense. It'll give a slightly more vehicle to work with too.

 

I would gather that it will be a Delta.  There are new Delta crossovers coming.

[smk4565]

XT1 on Gamma, XT3 on Delta and XT7 on the next gen Lambda platform.  Clone all those Chevy and Buick crossovers into Cadillacs so they can be like Lincoln.   Sounds like a viable plan.

[Suaviloquent]

The thing is, not ideal from an enthusiasts perspective as it can be, I'm not sure any kind of crossover should be really be made to emulate a good sports sedan. People don't buy them for that reason. Alright I concede enthusiasts might, but they're just as endangered as dead-tree media. I'll readily concede I am not an enthusiast either. I just like finger-licking good cars.

 

Then again Mercede's Metris and Sprinter (Vans of all things) has better steering than a CLA, equal to the C-Class, but I digress no more.

 

Okay maybe some more digression, Lincoln crossovers might have a head start but Cadillac's got overall much more cachet, so therefore Cadillac will catch up, unless an inverse of that inter-relation of the two brands is imminent, okay it might be feasible, but realistic, absolutely not.

 

And has anyone not noticed the weight loss of these new GM products?

 

Give'em the steering of a Fiesta, heck cannibalize as many Mazda and Ford compacts as you have to (speaking to GM here), give'em GKN's new AWD system and you have a formula for an awesome FWD/AWD Crossover. And you don't need RWD.

 

Besides, because of Audi's Quattro AWD configuration, it's defaulted to giving more power to the front wheels even with a longitudinal setup for the commoner models. So here's some eccentric polarization of a North/South setup to give you FWD packaging, at the expense of weight distribution.

 

I see this as a cost-effective way of pushing models out. All GM has to do is make sure there is a clear separation between brands. They are now among the best at doing it. And the ones that do make the platform sharing as inconspicuous as possible result in gloriously expensive vehicles for what they give you (Germans, dammit that is one way to make a ton of money. Wrap cheap bones in succulent meat. Just don't look at the marrow).

[William Maley]

XT1 on Gamma, XT3 on Delta and XT7 on the next gen Lambda platform.  Clone all those Chevy and Buick crossovers into Cadillacs so they can be like Lincoln.   Sounds like a viable plan.

That isn't for sure at the moment. There are conflicting rumors saying it could use next-gen full-size crossover platform, or the Omega platform for the CT6. I wouldn't be surprised if its the former.

[hyperv6]

But Wait There's More!

Uwe Ellinghaus, Cadillac CMO, on the brand and the industry’s crossover craze.

Ellinghaus confirmed what we already knew, saying the 2017 Cadillac XT5 will be flanked by a larger crossover vehicle, to bridge the gap between XT5 and Escalade, and a compact crossover to do battle with the BMW X3 and the like.

Adding to the report of four new crossovers coming by 2020, which includes the likelihood of a subcompact Cadillac crossover, are Ellinghaus’ words of what he envisions could make for five crossovers.

“We can envisage an even more compact [model] but we can also envisage something between a three-row SUV/crossover-derived car and the Escalade,” he said.

Yes, that would bring the lineup to a subcompact crossover, a compact crossover, XT5, a large crossover, this envisioned SUV/crossover and, finally, the Escalade. Though, Ellinghaus is quick to point out the Escalade is treated much differently, seeing as it is derived from a truck, rather than a car.

“The Escalade is so huge, and it’s different because it’s truck-based, that if the growth of the SUV segment continues, I really think there is space for maybe even two smaller cars than the XT5 and maybe even two larger ones.”

Read more: http://gmauthority.com/blog/2015/11/uwe-ellinghaus-talks-cadillac-and-the-crossover-craze/#ixzz3sMaNigDU

[Suaviloquent]

Cadillac got money at their disposal and a whiteboard open to anything that will ensure success. 

 

That means they can make the products they need and the ones they want. Commitment. It isn't easy to make when the going isn't so easy, but Cadillac has real commitment. 

 

I mean seriously, Cadillac is entrenched as being American. 

 

This is on top of everything sedan being redesigned, and 2 new halo sedans. That's up to 8 new products. Nice.

[smk4565]

Cadillac should use Alpha and Omega for crossovers, but they probably will go the cheaper route and just build them off the Chevy and Buicks.  So we get that Chevy is the main stream.  But then Buick and GMC are both supposed to be premium or entry lux crossovers, and Cadillac a luxury version?  How do those not all over lap if they all have the same chassis and engines.  

 

And where are the V-series crossovers?  Cadillac has aspirations of having higher performance than the Germans, yet they have 2 performance products (ATS and CTS).  Shouldn't there be a 575 hp XT5 to compete with the GLE63 and X5M?  A 465 hp  XT3-V to compete with the coming GLC63,  An Escalade-V? etc.

[Drew Dowdell]

XT1 on Gamma, XT3 on Delta and XT7 on the next gen Lambda platform.  Clone all those Chevy and Buick crossovers into Cadillacs so they can be like Lincoln.   Sounds like a viable plan

 

 

Cadillac has done an excellent job in making their vehicles their own when they are shared with other GM products and vice versa.  Sharing some under-bits with the Suburban clearly hasn't hurt the Escalade since they can't even build them fast enough.  No one will ever mistake a Camaro for an ATS or CTS.... and using the Alpha for Camaro was the best possible solution available to GM.

 

 The SRX was one of the best handling FWD based crossovers out there and the new platform the XT5 uses is only going to improve on that.   I have no problem with Cadillac using a new Lambda platform replacement as long as it rocks the segment.

[Suaviloquent]

Cadillac should use Alpha and Omega for crossovers, but they probably will go the cheaper route and just build them off the Chevy and Buicks.  So we get that Chevy is the main stream.  But then Buick and GMC are both supposed to be premium or entry lux crossovers, and Cadillac a luxury version?  How do those not all over lap if they all have the same chassis and engines.  

 

And where are the V-series crossovers?  Cadillac has aspirations of having higher performance than the Germans, yet they have 2 performance products (ATS and CTS).  Shouldn't there be a 575 hp XT5 to compete with the GLE63 and X5M?  A 465 hp  XT3-V to compete with the coming GLC63,  An Escalade-V? etc.

 

I think Drew mentioned this before.

 

There are core vehicle platforms. Then there are body styles. Then there are variants of the body styles. Variants are the last step in defining a product lineup.

 

It's not so simple to say that GM is just building cars off of Chevys and Buicks. If anything, it looks like all of the recent platforms are using trickle-down from Cadillac. It's evident, not always everywhere, but you do get consistent themes. Weight-reduction is among them. All of GM carmaking is getting lessons learned from state-of-art Corvette and new generation Volt development programs. And styling is really maturing, and GM is one of the few automakers that still makes great, original designs.

 

Your concerns are valid though. I have been adamant as always, the El Miraj was begging to be built when they unveiled it. It was the best 50-50 chance to glory I'd ever seen for Cadillac recently. They missed a big one, and they will regret it, because opportunities like that will only come again when something they make suggests a radical departure from Art and Science and still resonates with fans and critics.

 

Cadillac very recently did do parity in pricing, like for like in options and they were trounced. So they had to increase standard equipment. Even the old CTS Wagon and its departure were a sign then as it is now, Cadillac cannot be reasonably expected to have exactly equivalent counterparts to the German competition within the decade. The market does not want extreme Cadillac crossovers just yet. They're not out of the realm of possibility though,

 

They cannot intentionally build vehicles that are not profit-centres. The ELR I think of now as the cross between an i8 and an Audi TT. A car that with any other German make as its creator could have been easily justified among a very large portfolio. 

 

I'm not going to excuse them for not being ahead of the curve, but I do say, build up your core vehicle platforms. Then get the right power-trains to power the vehicles based on those platforms. Get each brand styling formula right.

 

Make the body styles you can sell. Then, at the very end see if it aligns with core competencies to make variants. The things with BMW and Mercedes is that they are just one core brand. They don't have other complete brands that aren't restricted to a niche. So they have to make variants as their filler for showrooms. It's different, but it aligns with core competencies.

 

Cadillac could over-stuff its showrooms, but the rest of GM certainly can't. It'd be an utter waste. 

 

There are glaring holes right now at Cadillac - heck even Lincoln is ahead by default. What Cadillac has to do, is to make sure their future crossovers are revolutionary in their own right, in a way that pushes them ahead of the league. They are capable of doing it. Being ahead for once in one area, will bide them time to build variants to complete the brand. Heck, some vehicles might just be lost in the process too. And the Germans makes are not immune to this either.

[hyperv6]

Cadillac should use Alpha and Omega for crossovers, but they probably will go the cheaper route and just build them off the Chevy and Buicks.  So we get that Chevy is the main stream.  But then Buick and GMC are both supposed to be premium or entry lux crossovers, and Cadillac a luxury version?  How do those not all over lap if they all have the same chassis and engines.  

 

And where are the V-series crossovers?  Cadillac has aspirations of having higher performance than the Germans, yet they have 2 performance products (ATS and CTS).  Shouldn't there be a 575 hp XT5 to compete with the GLE63 and X5M?  A 465 hp  XT3-V to compete with the coming GLC63,  An Escalade-V? etc.

No what you are going to see is more of the products being made for Cadillac and then trickled down to Chevy and Buick. Cadillac got it ass backwards for too many years where a share platform was made a Caprice then dumbed up to be a Cadillac. Today it is a Cadillac first and then trickled down to a Chevy and they all benefit.

Cadillac for once not just has the money but the independence to do things unthinkable 5 years ago.

I think you may find that there may not be a need to use an Alpha or Omega as there may just be another platform lurking out there yet to be seen. With the profits in the Crossover segment there is no need to go the cheap route out and base a RWD car platform for a CUV that could base 3-4 different models.

The benefits of doing it right and making a new RWD/AWD platform for a CUV is that there would be less compromise better weight reduction and more ability to adapt it to different models. there is enough of a business case to do this and I think you may just see it.

Note on other sights they are reporting Chevy has registered the Blazer name again for use and GM also added a AT4 name that I suspect may be a GMC name for All Terrain 4 wheel drive. These could be the trickled down models of the Cadillac bases CUV model. Not fully clear yet but bears watching.

When I mean this segment is making them money that is clearly an understatement. Look for even more serious investment in these models in all division and see things you did not expect happen.

Last year the CUV finally out sold the sedan and this is a trend that will last as long as the mini van or longer. It is a model that appeals to many because of the utility that they provide the truck like height to see and it is something a man will feel better being seen in. Automakers love it because they make money they sell in great numbers the Nox and Terrain alone sold over 350,000 units with the old models last year. Also they get better MPG numbers than most larger SUV models that will have to be trimmed back in the future.

[Suaviloquent]

You gotta love the essay style defence of Cadillac. Very good sirs, very good.

[Guest Wings4Life(BANNED)]

Sales have gone nowhere for the last several years. 

They can surely use this product.

[ocnblu]

The People want crossovers, crossovers they will get.  The CUV is, above all, a very functional type of vehicle... high seating position, wagon hauling capability, AWD security... what's not to like, if the thing is made to be nice to DRIVE.

[hyperv6]

Sales have gone nowhere for the last several years. 

They can surely use this product.

This division and as I think you will see with Lincoln too that it is not about volume but profit per unit that is key anymore. Prices will climb the units sold will go down but profit per unit sold will continue to climb. In a CUV It will climb even faster.

The HHR is the greatest proof of what a CUV can do. They took what was a Cobalt wagon, made it look like an Old SUV with a high roof and look more truck like. It sold over 100,000-150,000 units per year. People loved it. If it were a car or mini van it would have sold nothing near this.

In todays world people want more utility as most cars can not handle much cargo wise. Yes some have large trunks but try to get a square box into it or a 60"Tv and you are stuck.

My wife loves her Terrain and I have grown to love it too. At first I really could care less but today I am so glad we bought it. Now if it were a Mini Van I would not be caught dead behind the wheel. That is the real key here as they have made a Mini Van men love as well as women. With the market being pretty much 50/50 with men and women that is a key demo that few vehicles hit.

Just look at the Encore. People love it as it is comfortable, and you can fold everything down and haul a lot of cargo. Then the MPG is not 15 MPG or the price is not $60K. This has hit a sweet spot with many people. Lets face it the only real complaint most have is it needed a little more power and this year it got it with little MPG penalty.

Edited November 24, 2015 by hyperv6

[surreal1272]

Sales have gone nowhere for the last several years. 

They can surely use this product.

While their profit has increased for the last several years as well. Gotta suck when that happens.

[surreal1272]

 

Sales have gone nowhere for the last several years. 

They can surely use this product.

While their profit has increased for the last several years as well. Gotta suck when that happens.

 

Thanks for saving another down vote for me. For someone who trumps up profits so much when it comes to Ford, it sure is sweet irony that you would down vote the same kind of statement when it is NOT about Ford. Fact is that while volume is down, profits are up for Cadillac.

[El Kabong]

Cadillac: it's products carve corners!

It's spreadsheets don't cut them!

[smk4565]

How do we know Cadillac profits are up?  Do we think the CTS is making more gross profit on 1,400 sales a month than it was on 3,800? They have been putting $6-7,000 incentives on the SRX this year, that is why the sales numbers have been good in addition to it being their only crossover in the show room.    GM doesn't break the brand profit numbers out, so we don't really know if Cadillac is making money or losing it.   GM's entire company turns less profit than BMW or Mercedes, if Cadillac is a profit machine on the level of the Germans, are we to believe that Chevy and Buick are losing money?

[balthazar]

Profit is calculated on cost of doing business subtracted from revenue from said business.

 

I only define this because smk seems rather unsure.

 

SMK, why would you care how much profit Cadillac makes?

[surreal1272]

How do we know Cadillac profits are up?  Do we think the CTS is making more gross profit on 1,400 sales a month than it was on 3,800? They have been putting $6-7,000 incentives on the SRX this year, that is why the sales numbers have been good in addition to it being their only crossover in the show room.    GM doesn't break the brand profit numbers out, so we don't really know if Cadillac is making money or losing it.   GM's entire company turns less profit than BMW or Mercedes, if Cadillac is a profit machine on the level of the Germans, are we to believe that Chevy and Buick are losing money?

All I am gong to say is this. Google is your friend. Nothing else needs to be explained to you.

[surreal1272]

Profit is calculated on cost of doing business subtracted from revenue from said business.

 

I only define this because smk seems rather unsure.

 

SMK, why would you care how much profit Cadillac makes?

He was replying to my statement about Cadillac's profits being up.

[Drew Dowdell]

Sales have gone nowhere for the last several years. 

They can surely use this product.

 

False.

 

Globally, Cadillac sales are up 16%.  In the US, sales are flat but average transaction prices are up $7,000 per unit over the last 12 months... and that's after a huge jump in the prior 12 months.  Escalade transaction prices are up $20k over the previous model. 

 

Selling the same number of vehicles but at a $7k increase in price is a really good position to be in.

[Guest Wings4Life(BANNED)]

 

Sales have gone nowhere for the last several years. 

They can surely use this product.

 

False.

 

Globally, Cadillac sales are up 16%.  In the US, sales are flat but average transaction prices are up $7,000 per unit over the last 12 months... and that's after a huge jump in the prior 12 months.  Escalade transaction prices are up $20k over the previous model. 

 

Selling the same number of vehicles but at a $7k increase in price is a really good position to be in.

 

 

 

Yeah, well, if we are suddenly talking global, then Lincoln is REALLY up.

But flat = 'nowhere' in the US.

[Drew Dowdell]

Again, you miss (or willfully ignore) the part about ATP.

[smk4565]

What if you could have the highest ATP, highest sales volume and highest total profit. You' cover all 3 points and be a star for sure.

[Drew Dowdell]

What if you could have the highest ATP, highest sales volume and highest total profit. You' cover all 3 points and be a star for sure.

 

Because there are people out there who will buy a sack of cow dung as long as it has a 3 point star on it.... and then they get to Pretendz that it is the best thing ever.

[Guest Wings4Life(BANNED)]

 

 

Sales have gone nowhere for the last several years. 

They can surely use this product.

While their profit has increased for the last several years as well. Gotta suck when that happens.

 

Thanks for saving another down vote for me. For someone who trumps up profits so much when it comes to Ford, it sure is sweet irony that you would down vote the same kind of statement when it is NOT about Ford. Fact is that while volume is down, profits are up for Cadillac.

 

 

maybe you were downvoted for another reason.

 

Again, you miss (or willfully ignore) the part about ATP.

 

 

ATP's and the price of lettuce in China has what to do with the fact that customers are flocking to CUV's, and Cadillac is behind the development 8-ball there.  That's a simple fact.

[Drew Dowdell]

 

 

 

Sales have gone nowhere for the last several years. 

They can surely use this product.

While their profit has increased for the last several years as well. Gotta suck when that happens.

 

Thanks for saving another down vote for me. For someone who trumps up profits so much when it comes to Ford, it sure is sweet irony that you would down vote the same kind of statement when it is NOT about Ford. Fact is that while volume is down, profits are up for Cadillac.

 

 

maybe you were downvoted for another reason.

 

Again, you miss (or willfully ignore) the part about ATP.

 

 

ATP's and the price of lettuce in China has what to do with the fact that customers are flocking to CUV's, and Cadillac is behind the development 8-ball there.  That's a simple fact.

 

 

 

 

This *huge* step up is replacing the second best selling CUV in the segment. 

 

[Guest Wings4Life(BANNED)]

^

 

Drew, you know better.

CUV's are Hot and GM has one and will only have one for a few more years.

 

Hence my point, small CUV in a few years will help their flat sales .....in the US

[G. David Felt]

^^^^^ OK, So I am not able to Bing or google what ATP is for the auto industry. Lots of sites that use ATP in their name but no clear answer here. Please help me out here.

 

In regards to the pictures, the XT5 is going to be a hit and the interior is superior to what MB or BMW or anyone else has right now.

[surreal1272]

 

 

 

Sales have gone nowhere for the last several years. 

They can surely use this product.

While their profit has increased for the last several years as well. Gotta suck when that happens.

 

Thanks for saving another down vote for me. For someone who trumps up profits so much when it comes to Ford, it sure is sweet irony that you would down vote the same kind of statement when it is NOT about Ford. Fact is that while volume is down, profits are up for Cadillac.

 

 

maybe you were downvoted for another reason.

 

Again, you miss (or willfully ignore) the part about ATP.

 

 

ATP's and the price of lettuce in China has what to do with the fact that customers are flocking to CUV's, and Cadillac is behind the development 8-ball there.  That's a simple fact.

 

So you were just trolling then. Thanks for confirming that. Again, when it comes to ATPs and profits from Ford, you rah rah rah it all the way home but when it comes to anything NOT Ford, you sidestep, deflect, and make lousy excuses for it. Drew has already pointed out those facts very well, that you have willfully ignored.

[surreal1272]

 

 

Sales have gone nowhere for the last several years. 

They can surely use this product.

 

False.

 

Globally, Cadillac sales are up 16%.  In the US, sales are flat but average transaction prices are up $7,000 per unit over the last 12 months... and that's after a huge jump in the prior 12 months.  Escalade transaction prices are up $20k over the previous model. 

 

Selling the same number of vehicles but at a $7k increase in price is a really good position to be in.

 

 

 

Yeah, well, if we are suddenly talking global, then Lincoln is REALLY up.

But flat = 'nowhere' in the US.

 

In fairness, Lincoln had nowhere else to go but "up" so a bit of a misleading statement to make there.

[Drew Dowdell]

^^^^^ OK, So I am not able to Bing or google what ATP is for the auto industry. Lots of sites that use ATP in their name but no clear answer here. Please help me out here.

 

In regards to the pictures, the XT5 is going to be a hit and the interior is superior to what MB or BMW or anyone else has right now.

Average Transaction Price = ATP

At least in this context.

The XT5's new interior blows a lot of the competition out of the water.

 

 

 

 

And this is the current number 1 seller..... 

 

 

[G. David Felt]

Thanks Drew, totally zoned about the average transaction price - ATP.

 

Those are great pictures and it does blow Lexus out of the water.

[smk4565]

BMW, Audi and Cadillac are all around $52k ATP. That isn't Cadillac's problem. The problem is having one crossover and crossovers didn't becomenhot last year. GM more than anyone relies on trucks and SUVs, you'd think they would have had more Cadillac product in the works.

This sort of ties in with lacknof coupes for a while, XLR being the only convertible in the past 20 years, etc. Cadillac doesn't have the product they need. And that is mind boggling. VW makes 80% of its profit on luxury brands that are less than 20% of their total volume.

[balthazar]

In 2010, Cadillac was behind BMW & MB in ATPs, and about $5K above Audi & Lexus.

 

Now Cadillac is still above audi, has increased it's ATP lead over Lexus to $10K, and has surpassed BMW. 

[hyperv6]

BMW, Audi and Cadillac are all around $52k ATP. That isn't Cadillac's problem. The problem is having one crossover and crossovers didn't becomenhot last year. GM more than anyone relies on trucks and SUVs, you'd think they would have had more Cadillac product in the works.

This sort of ties in with lacknof coupes for a while, XLR being the only convertible in the past 20 years, etc. Cadillac doesn't have the product they need. And that is mind boggling. VW makes 80% of its profit on luxury brands that are less than 20% of their total volume.

You really can not see the big picture can you?

Coming out of chapter 11 delayed many projects and Cadillac was focused on the Alpha and Omega as they had nothing for cars to offer that were even in class qualified. The SRX held its own and could wait till its new platform arrives. Now there are more coming but their platform is not ready yet.

Even GM can not do it all at one time as development take billions and a lot of man power and they can only spend and use as much as they have.

As for the lack of coupes. They are such a small part of the business they can wait. Getting the class leading sedans are much more important as well as more CUV models.

You really are showing you have no clue how a automaker operates. I do not say this to be mean but with post like this you really are showing ignorance to what all it takes. You have been here long enough to have even accidentally pick up a few clues here.

[smk4565]

For a company in bankruptcy, or coming out of it, wouldn't you want to get the highest profit margin vehicles to market first? Yet look at the products they did in 2011-2013, like Regal, Volt, Impala, Malibu, Cruze, Verano. Those should have taken a back seat to pumping products into Cadillac.

Let's use VW as an example. If they filed Bankruptcy in 2009, they could have put a 5 year freeze on VW product launches had Jetta and Passat sales drop to zero and it wouldn't matter because the luxury brands would make the money and save the company.

[balthazar]

VW isn't, exactly, the model any car company should be looking to for business practices.

 

The reason Audi cannot eclipse Cadillac's ATPs is half their model line-up uses VW engines. Or so you might say… were you remotely objective.

Edited November 26, 2015 by balthazar

[Suaviloquent]

For a company in bankruptcy, or coming out of it, wouldn't you want to get the highest profit margin vehicles to market first? Yet look at the products they did in 2011-2013, like Regal, Volt, Impala, Malibu, Cruze, Verano. Those should have taken a back seat to pumping products into Cadillac.

Let's use VW as an example. If they filed Bankruptcy in 2009, they could have put a 5 year freeze on VW product launches had Jetta and Passat sales drop to zero and it wouldn't matter because the luxury brands would make the money and save the company.

 

For a company in bankruptcy, or coming out of it, wouldn't you want to get the highest profit margin vehicles to market first? Yet look at the products they did in 2011-2013, like Regal, Volt, Impala, Malibu, Cruze, Verano. Those should have taken a back seat to pumping products into Cadillac.

Let's use VW as an example. If they filed Bankruptcy in 2009, they could have put a 5 year freeze on VW product launches had Jetta and Passat sales drop to zero and it wouldn't matter because the luxury brands would make the money and save the company.

 

There are immense positive externalities to producing high volume, low-margin vehicles.

 

Back at MT I used to criticize GM for forgetting the meat and potatoes when Corvettes and V Series Cadillacs were the best vehicles they could make and indicative of a firm that can have greatness baked in every vehicle it makes.

 

Even looking at other makes. Toyota and now Hyundai/Kia entered the luxury realm only on the backs of their mass-market sales.

 

When the economy tumbled, so did luxury sales and margins there. You're grossly oversimplifying the issue. Ford for a lack of better words survived by halting most of its new product launches until after the collapse as well. That's why you saw more product refreshes than anything before 2011.

 

We can criticize Cadillac a few times for being behind the curve. That's about it.

 

After that, we can only hope that Cadillac delivers the gravy on top of the meat and potatoes. Cadillac has a recent history of not leaving anything to hope or chance. Expect the gravy to be little at first, but I'm dead sure it'll go a long way.

 

Judge them on their future potential based on current results, not current results due to past performance.