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Analysis: Cadillac CTS Sales Down 39 Percent In First Six Months Of 2015, But Why?

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#1 · (Edited by Moderator)
Analysis: Cadillac CTS Sales Down 39 Percent In First Six Months Of 2015, But Why?
July 28, 2015
BY CHRIS ECCLESTONE



During the first six months of 2015, the Cadillac CTS was responsible for 9,689 sales. That’s a 39 percent decrease compared to the 16,008 units sold during the same time period in 2014. But is the drop as bad as the numbers would suggest?

Other segment contenders also experienced drops: the Mercedes-Benz E-Class — the segment’s perennial best-seller — saw sales drop 36 percent to 22,252 units during the first six months. Meanwhile, the BMW 5 Series was off 15 percent to 23,581 units, the Acura RLX/RL was off 42 percent to 1,200 units, and the Audi A6/S6 was down 4 percent to 11,409 units. Taken as a whole, the midsize luxury passenger car segment was down 20 percent during the first six months of the year in the United States.

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#2 ·
Ok, did my best to comply with the new format rules, I give up trying to make the grid a reasonable size :)

So, while the CTS isn't doing well vs. the segment, it isn't like the E Class and 5 Series aren't down as well. Though that isn't much of a consolation prize, but when coupled with the price increase it isn't surprising. Are there any production constraints with the new E? Though I could see people staying away from the E Class with its bulbous styling (of course just my opinion).

Edit: Oops, I was thinking of the bulbous new C Class, not the E Class.
 
#5 ·
As has been discussed many many times on this forum, crossovers continue to take more sales from cars. When a car is introduced, it may get a quick bump in sales, but people will keep on going to crossovers instead.

Some purists may not like it, but GM should be diverted in more development away from these cars, and put that towards another smaller cross over, and updating their current SUVs more often.
 
#20 · (Edited)
To me this hits the nail on the head above all other things. Why analysts continue to miss the fact that the CTS simply is not the same car or even a continuation of the same car is beyond my understanding. Even more simplistic in explaining the drop would be to look at the fact the current CTS is missing 2 major components (coupe and Vseries) in its makeup from last go round that, ironically gave it about 39 of its sales.

I will go on record as saying that despite my respect for the brand and it's new management, they were idiotic in not implementing the name change over at the launch of the ATS let alone the CTS to prevent this kind of confusion. For one the ATS is now occupying the last two generation CTS' spot in the lineup, while the current CTS is in the STS', along with, making it even more confusing an XTS with a similar, no identical, price point. Launching a CT2, CT4 and upcoming CT6, with the odd man out XTS changing to a CT5 should have happened in 2012, when the first ATS appeared.
 
#14 · (Edited)
The SUV/Crossover is not a fad and certainly can't compare to previous trends like Station Wagons or Minivans (minivans btw is a larger and growing segment compared to the collapsing large sedan market). Those segment never dominated the sedan market which is happening now with SUVs and Crossovers. If this is a fad, they are sure as hell not going back to sedans. The great thing about Crossovers is that there are countless variations and sizes possible for each customer and there is just no way we are going back on that now. Expect compact crossovers like Escape to overtake midsize sedans as the bestselling vehicle segment in the US (which is why Chevy is realigning its Crossover portfolio). And it's happening for more rapidly now that I think anybody expected, especially Caddy.

If there is one thing that has been proven throughout automotive history, faded segments never regain their previous popularity (station wagons, coupes, small pickups, minivans, muscle cars, etc.). Some segments are utterly extinct like Station Wagons, others are fickle like muscle cars and coupes, some are stagnant like minivans. But in either case, this is a constantly changing form of technology that never regresses. It's important to put your money where the growth is.
 
#18 ·
is it possible the ATS took away a few sales? the ATS and CTS are attracting same type of buyers of the first and second generation of CTS?
 
#42 ·
That is a point.

Cadillac, in 2011-2012 had really one passenger car nameplate and that was the second generation CTS, though the highly successful Coupe and highly unsuccessful Wagon were recent variants. The last STS and DTS were built in April 2011 if I recall correctly.

Now, Cadillac has 3 distinctly different nameplates where they had only one for a while. I haven't had time to research, but I'd be interested to know what total Cadillac car sales are now as opposed to 2011/12.
 
#19 ·
I'm interested in the tahoe and suburban's july sales numbers to see if poor sales continue as well. Even if it's as bad as last month, it doesn't necessarily indicate a negative trend due to the small sample size. However, there is absolutely no reason for such a significant drop in sales due to internal factors. The Tahoe and Suburban are the unbeatable titans in the segment, simply the best, and were highly incentivized last in June. Sales should at least remain stagnate. A strong possibility for the decline is a sweeping customer market shift away from huge SUVs, just like the drop in mid and full size cars. Clearly the CUV is the best of both worlds. It's roomy and comfortable like a SUV with the fuel economy and handling of a car. The GM fullsize SUVs, exluding Denali and Escalade, may be in the same boat as the CTS.
 
#28 ·
Cadillac's bread and butter needs to be a full range of CUVs and SUVs. Sedans, coupes and wagons should be there for image and purists.
 
#33 ·
I think the SRX is competitive, but they need a Q3/GLA fighter. A lot of first time luxury buyers are looking for a small SUV in the mid 30's, and then as their income increases they'll move up to something larger...which Cadillac also needs to have ready for them - something between SRX and Escalade.
 
#36 ·
Page one and there are probably 10/15 posts that are aneurysms over the existence of crossovers.

Crossovers offer a genuine advantage over sedans. They look better than station wagons and minivans. They're certainly more efficient than big BOF SUVs.

It's not a fad, but it's not the end of the sedan, either. Re-effing-lax.

As far as sales go, Cadillac sales dropped because they stopped over-producing and giving away cars.
E sales have probably dropped because it's a dumpy car that's old and ugly and there's a C-Class not very far away on the showroom floor that obliterates it in every metric but size.
I have no idea why the 5 is down. It's also getting old. My guess is probably some external conquest from the CTS (sales have to come from somewhere) and internal conquest from the X5 and particularly the X6.
 
#39 ·
During the first six months of 2015, the Cadillac CTS was responsible for 9,689 sales. That’s a 39 percent decrease compared to the 16,008 units sold during the same time period in 2014. But is the drop as bad as the numbers would suggest?

Other segment contenders also experienced drops: the Mercedes-Benz E-Class — the segment’s perennial best-seller — saw sales drop 36 percent to 22,252 units during the first six months. Meanwhile, the BMW 5 Series was off 15 percent to 23,581 units, the Acura RLX/RL was off 42 percent to 1,200 units, and the Audi A6/S6 was down 4 percent to 11,409 units. Taken as a whole, the midsize luxury passenger car segment was down 20 percent during the first six months of the year in the United States.
Fundamental difference between E-Class, 5-Series, and A6 compared to the CTS, is the Germans are at or near End-of-Life.
CTS is **NEW**!!!!!
 
#47 ·
No it's not. Its now 3 years old and despite it being top of class in many areas, it's platform was developed pre-BK . Great thing I'd that it's still getting a re-engineering for 2017
 
#52 ·
Design, interior, CUE, price, brand cache. Did I miss anything?
The previous CTS appealed to American males interested in a reasonably priced RWD vehicle with somewhat aggressive design.
CTS Gen 2 sold well because it was value priced. It offered 5-series size for a 3-series price.
CTS Gen 3 doesn't sell well because it's not value priced enough in buyers' eyes. It offers 5-series size for a 5-series price.

So why doesn't the ATS sell well in it's place?
Design, interior, CUE, price, brand cache.
And because it looks so boring and looks like it was designed in 2006.
 
#56 ·
Styling. Generation III CTS is too bland--both first and second generation CTS's were eye-catchers when they debuted. The generation III CTS MCE should have come for 2016, along with an even more highly styled Coupe (following the formula that the first CTS Coupes were more highly styled versions of the Sedan! Perhaps a true hardtop--and of course, a convertible variant a few months later.) At present, the best looking Cadillac model is the ATS, but many buyers find it too small for their needs. The generation III CTS should have eclipsed the ATS in styling. Create a more sophisticated styling with Cadillac design cues and CTS will once again be a big seller.
 
#65 ·
"You cannot tell me that GM's analysts and product head and managers up and down the chain didn't see this growth trend over the course of 10+ years!??" - yeah we can! Aztek was first, awkwardly styled so GM assumes, people dont want CUVs!? They arent viable. Then here comes the BMW X5 which saves their bacon, but GM brass is still saying we tried with the Aztek, the segment doesnt work- I wish GM brass would read pages like this- we are the only ones who give a crap about the company and have been asking for cuvs for 10 years-
 
#75 ·
Remember they sell in China too.

And there will be a replacement but we don't know what form it will take yet.
 
#90 ·
I could have told you that long time ago, Gm in starving CTS and ATS giving them no advertisement. They should continue to run ads on these two great Machines, keep it fresh in people's mind on considering a Cadillac. Run ads at least every other day. And Gm should lower the lease prices.
 
#111 ·
So you'd rather sell 9,500 cars now to people who may buy another in the future, rather than selling 23,000 cars now, among whom 11,500 customers may buy another in the future?
 
#104 ·
People are buying cuv s. The sedan market as a whole is shrinking.

Cadillac s crappy leases and horribly cheap looking base model is just icing on the cake.

Thanks for posting up the article.
 
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