smk4565
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Everything posted by smk4565
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DeLorenzo nailed it. The Escalade is their one grand slam product, and it is big, heavy, V8, has a word name, etc. It is the opposite their other products. The Escalade is riding high now in times of cheap gas, there is risk there if gas gets expensive or the economy tanks. But they could easily put a V6 hybrid system or something in an Escalade to get the fuel economy up if they had to. The rest of the line needs work, they need word names, they need marketing. The alphabet soup names are forgotten among consumers, the ads aren't drawing people in or moving the needle.
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The Cruze is a luxury car? It isn't even comparable to an Acura ILX, let alone a CLA. I am not a CLA fan, but the CLA45 does do 0-60 in 4.5 seconds, that is as fast as a CTS V-sport, so it isn't a slouch car. Even the base car does 0-60 in 6.9 seconds and the interior is what you would expect for a low $30k car. I don't really see what the Audi A3 does any better, I think the Audi interior is more sparse than the CLA.
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Sergio is over compensated by about $70 million. I think a lot of CEO's in a lot of companies are overpaid. If you are like a Steve Jobs who is CEO and inventor, then you are worth every dime, because he was developing the product that was making the money. But for the caretaker of the throne type CEO's that make $25 million then complain that they can't pay workers more than $10 an hour because profits will go down, I think they are full of crap. That is for all industries, not just auto.
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I am not saying that convertibles will help sell more sedans, but there are a number of buyers out there that want a convertible. So if you want that body style, Cadillac isn't even on the radar. Yes it is a small segment, but you can't just ignore it totally. It would help the image of the brand also to have a convertible. Best news of the day is that Cadillac is planning a car based on the Cruze, that will be priced in the mid $20s with a 1.5 liter turbo and a 2.0 turbo range topper to compete with the CLA. Everyone wants to trash the CLA, yet Cadillac seems like they need to build a competitor for it.
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Mercedes and Lexus have better dealerships than Cadillac, but that isn't why Mercedes and Lexus beat Cadillac. Cadillac's marketing is bad, the product line incomplete, and the ATS uncompetitive in the high volume entry-lex segment. CTS sells comparable to a GS or A6, you can live with the CTS's sales volume, although more would help. But when your brand has 2 coupes (if the ELR is still around), 1 crossover and 0 convertibles, you have a product problem, and there is a management problem for letting the brand go this long without essential product.
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If the dealership was so important then Cadillac or Lincoln or Jaguar could just build luxury dealerships and get sales. It doesn't work like that. Copying Lexus's dealership experience would be a lot cheaper than copying their car line. Rahal owns a Jaguar/Land Rover dealership about 3 miles away from their Mercedes dealership, and the Jaguar dealership is newer and nicer, I would assume equal service since it is the same owner. But they sell a lot more Mercedes than JLR.
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Cadillac doesn't have the competing product. They don't make a small crossover which is the #1 growth segment in the auto industry, I think at 17% growth last year. Cadillac doesn't make a convertible, if you want a convertible you can't even consider the brand, lost sales on a high margin vehicle. The product line has holes and has had holes for 10-15 years. ATS is also getting clobbered, Lexus IS and the German 3 outsell it, Acura TLX and Lincoln MKZ outsell it but they are bigger cars, not a direct competitor.
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Honda and Toyota have stand alone dealers too. (Now that Scion is dead . Most car brands have their own building. It is industry common place. Which is why Cadillac should have stand alone dealers, and most Cadillac dealers are stand alone. I have always said dealership amenities and customer service are important for the service department because people have a lot of alternatives to take their vehicle to for service. I don't think the dealership plays a big role in the sales decision. If ABC Lexus has the nicest building in the world and XYZ Lexus 40 minutes away is mediocre but has that RX350 in the color you want for $2,000 less than ABC dealership has it, guess what, the customer is driving for the better deal, and the building didn't matter. An awful dealership can hurt sales, but I think for the most part dealerships are all about the same and aren't winning sales.
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Buick News: 2016 Buick Envision to Start In the Low $40,000s
smk4565 replied to William Maley's topic in Buick
What makes the Buick so premium though? It has an engine you'd find in a CR-V or Rav4. The RDX has a 279 hp V6, the Lexus NX and Lincoln MKC have turbo 4's standard. For the premium price over the Honda/Toyota/Ford you get a noticeable engine upgrade. I wouldn't say the Envision has a better interior than any of those 3 vehicles either, and the Buick is made in China, vs American made Lincoln and Acura, and Japanese for Lexus, so they don't win the country of origin image award either. I think the Buick Envision is needed, crossovers are hot, but they way over priced it. The Envision is priced $14,000 above the Verano, and is the same size vehicle with basically the same engines, 2.4 liter vs 2.5 liter the only difference.- 40 replies
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And to clarify I do think Cadillac should have stand alone dealers, because Lexus, Infiniti, Acura, BMW, Mercedes, Audi for the most part do, and Jaguar/Land Rover often share a dealership. All the other luxury brands do a stand alone dealer, except maybe Lincoln that combines with Ford a lot, and look where they are. It is just the cost of doing business in the luxury market, they all have stand alone dealers. That being said, I don't think the dealership is winning buyers. There is an Acura dealer next to the Mercedes dealership I get my car serviced at. They could pave the Acura parking lot in gold in give away free lunches, that isn't going to make me want to buy an Acura, because I don't like Acuras. The stand alone dealer is just an expectation, like if you go to a restaurant you expect the place to be clean, silverware to be clean, the waiter to bring ice water, take the order in a promo manner, etc. Those are just basic expectations. But if you like Italian food and don't like seafood you aren't going to Red Lobster because the wall paper is nicer than what Olive Garden has. The product matters far more than the building. Cadillac still has a product problem, but their number 1 problem is marketing.
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Did it hurt when you had to backpedal like that? It absolutely does have everything to do with people's decisions. How many times have we heard here how wrong it was for Cadillac to be sharing floor space with any other GM make? I know you sure took part in that dog pile but now that you have been shown proof of Mercedes showering their luxury filled lots with Sprinter vans, you say it doesn't matter? Seriously LMAO at that one SMK! It does matter. I have never been one on the campaign for super luxury stand alone dealers. I always thought it was better if Cadillac had their own dealerships so they aren't thought of as just another GM brand and thought of as more special. But overall you go to the dealer once to buy the car, then you might never go back. I actually think car companies could sell cars online and skip the dealership system altogether. Amazon could sell cars with better deals and greater efficiency than any dealership could. From the dealership standpoint, I think knowledge sales people matter more than what the building looks like, and if you are out on a test drive you aren't in the building anyway. Dealerships aren't Cadillac's problem.
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I think the German government is the one to due testing and find a lot of these cars have emission controls that don't actually meet regulations, but it would be a problem everywhere. Part of the problem is Europe is the tax the crap out or petrol/diesel and also put in super high MPG requirements, so in order for carmakers to get 60 mpg VW Golfs, they throw emission controls out the window. These regulators need to decide if they want to impose restrictions on emissions or fuel economy.
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Lincoln News: 2017 Lincoln Continental To Begin At $45,485
smk4565 replied to William Maley's topic in Lincoln
The ES is a giant disappointment once you drive it. The ride is way way too firm for the class, it bangs over bumps which echo into the cabin..and it has lost its quietness that it has a reputation for. Friends of mind have one and let me use it when I'm in town. It feels like a big Toyota with extra leather. Won't the Continental feel like a big Fusion with extra leather? -
They have lots of new products in the works. Hellcat Grand Cherokee, Hellcat Durango, Hellcat Wrangler, Hellcat Pacifica, Hellcat Dodge Dart, Hellcat Fiat 500, etc. All you have to do is put a monster V8 in a super dated and otherwise lackluster product and jack the price up and watch the sales roll in. Every other car company that has models on 6-7 year cycles has got it wrong. You want vehicles on Crown Vic style 17 year life cycles, throw in some body kits or new engine every 7 years as a "special edition" this is the way to make it in the auto industry. So the Hellcat lineup is the AMG of Fiat/Chrysler/Doge/Jeep? Just slap the label on any old car and call it day and the suckers will gladly overpay for it? Sounds right to me. AMG engines aren't put into super dated, uncompetitive vehicles though. The base cars are actually good and sell.
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Buick News: 2016 Buick Envision to Start In the Low $40,000s
smk4565 replied to William Maley's topic in Buick
The Acura RDX is the same size as the Envision and has a base 279 hp V6 with 252 lb-ft and for $35,370. Plus is has VTEC yo! How in the world is Buick charging $35k for a 197 hp 4-cylinder? If anything the 2.0T should be the base engine at $34k, forget the 1.6T unless that is in the $28,995 price point this car should start at.- 40 replies
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Buick News: 2016 Buick Envision to Start In the Low $40,000s
smk4565 replied to William Maley's topic in Buick
I think if people see Cadillac as an old person's car they will have the same opinion of Buick. The Envision is smaller than an Equinox, it is has the same length and width as a Verano, so it isn't really family sized either. You can also get a 310 hp mid-size Cadillac XT5 for less money than a 197 hp small sized Buick Envision. And your car won't be made in China. The Encore starts around $24k, I thought the Envision was a good idea with a base price around $28k, more money than a Ford Escape, less than a Lincoln MKC.- 40 replies
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Probably some used it as an excuse as to why there isn't an AWD Malibu. Over 1/3 of of buyers say all wheel drive is a must have. If they can put it in the Lacrosse, they should make it an option on Malibu too.
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I think the dealership doesn't have a lot to do with someone's decision on what car to buy. You are going to be in the dealership once, be in the car every day. On the service end I think the dealership matters more, as you might go there a few times a year, if you get poor service you will look toward independent mechanics, Midas, Jiffy Lube, etc. You can have the nicest dealership in the world with champagne flowing from the water fountains, but if you don't have the product to sell, it doesn't matter.
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Buick News: 2016 Buick Envision to Start In the Low $40,000s
smk4565 replied to William Maley's topic in Buick
The Jaguar F-Pace is also going to offer a 550 HP supercharged V8 option, although I am sure at a steep price. You can get a 310 HP V6 Cadillac XT5 cheaper than a 252 HP 4-cylinder Buick Envision. That is a no brainer. I think that GM thinks Buick is on par with Lincoln, Acura, And Lexus, but I don't see people paying $42k for a Buick crossover when the Lexus is actually cheaper.- 40 replies
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I have to imagine the only FCA brands that make any measurable amount of profit are Jeep and Ram. Jeep they can sell world wide with good margins. Ram has pickups that make money, and the Promaster and Promaster City were already developed and paid for by Fiat, so it just lets them sell more to recoup cost. Everything else they sell needs big rebates or fleet sales to move metal. Alfa sells like 900 cars a year in the US, that has to lose money, Fiat has no sales and with subcompact prices, plus import costs, that has to lose money.
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Cadillac for sure wants volume, they just don't know where to find it.
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Buick News: 2016 Buick Envision to Start In the Low $40,000s
smk4565 replied to William Maley's topic in Buick
For $33k base in the Lincoln MKC you get a turbo 4 making 240 hp and 270 lb-ft. For $35k in the Lexus NX you get a 235 hp, 258 lb-ft turbo 4. For that price in the Buick you get the 2.5 liter 4 making 197 hp and 192 lb-ft.- 40 replies
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They have lots of new products in the works. Hellcat Grand Cherokee, Hellcat Durango, Hellcat Wrangler, Hellcat Pacifica, Hellcat Dodge Dart, Hellcat Fiat 500, etc. All you have to do is put a monster V8 in a super dated and otherwise lackluster product and jack the price up and watch the sales roll in. Every other car company that has models on 6-7 year cycles has got it wrong. You want vehicles on Crown Vic style 17 year life cycles, throw in some body kits or new engine every 7 years as a "special edition" this is the way to make it in the auto industry.
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Buick News: 2016 Buick Envision to Start In the Low $40,000s
smk4565 replied to William Maley's topic in Buick
. There you go again. Let me tell you something about the Lexus NX. It is a Fancy Toyota RAV4. Funny how you don't say anything about that but when it involves Cadillac, it is somehow a different story. We are talking about a Chinese built Buick SUV that has already been on market a few years and looks dated at launch, and they want Lexus money for it. Yes the Lexus NX is a Rav4 underneath, but it is still a Lexus, which is better than any Buick, and a much more respected badge. I was comparing the Envision to NX and MKC because they are based on the Rav4 and Escape, and turbo 4, front drive crossovers. Both the Lincoln and Lexus are nicer and I think look better and have a better brand image. Would be unfair to compare those 2nd tier crossovers to the rear drive Germans.- 40 replies
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Avis and National need crossovers to rent out, this fits the bill.
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