Cadillac Should Lose the DTS

[Ghrankenstein]

Cadillac: Lose the DTS

An Editorial by Ghrankenstein


When I first reviewed the 2006 Cadillac DTS for GMI, I was taken. For the record, I’m still taken, but I’ve developed a few opinions about Cadillac, and about its allies, since working on multiple car lots. I’ve learned a few things about selling Cadillacs, and about selling the Deville.

As much as I like the DTS, and I really like it, the DTS doesn't do anything but put a Wreath and Crest on a Lucerne CXS, and hold necessary features back from Buick. Despite a more sporting tune for the Northstar, I can't say anything for this car that couldn't otherwise be attributed to the equally capable Lucerne. In short, I really like it, but I like the Lucerne CXS just as much, and the Lucerne is better looking and around $15,000 less.

Meanwhile, the $37,000-$42,000 Lucerne CXS loses worthwhile features such as a memory power tilt/telescoping steering wheel, front parking assist, and, most maddening, a driver's overhead grab handle. The Lucerne's steering wheel is a cumbersome 5-tooth tilt adjustment, while the Lacrosse gets a vastly handier 10-tooth with a generous manual telescope and more attractive integration of radio, cruise, and HVAC controls. I can see the DTS retaining the sweet massaging lumbars, but is it worth the difference? Furthermore, wouldn't a Lucerne with the same feature be even sweeter?

Regardless of what I think, and how good I think the Lucerne is, the number of people interested in the DTS and wouldn't dare look at a "lesser" Lucerne remains high. I have both cars on my lot, and I learned not to "insult" those people early on. If they want to pay several thousand more for basically the same thing, I can't afford to stop them. It's a minimum commission either way (so much for dealer arrogance), but a "Cadillac person" won't accept a lesser offering, even if it's just as good or better in a Buick.

The DTS has a very sharply bimodal purchase schedule from my experience, in that customers purchase very early or very late in the model year. Those that purchase early want the newest, along with the added resale value; those that purchase late want the deals and are willing to kludge on color and equipment. Both logics are finance-oriented, and are thusly influenced by resale value. Not only is it needless (read on),it is the worst possible scenario for Cadillac.

Fleet DTS is still out of control. The reason that DTS sales have dropped to where they have, regardless of their "best seller" status for Cadillac, is because thousands upon thousands of used (program=rental) Luxury I and Luxury II DTS's hit the market in six months. These cars sell for well below $30,000, albeit uncertified by Cadillac and not covered by its superb warranty.

This is what Cadillac-customer old guys are looking for, and in this scenario GM is competing with itself on self-made poor terms. "Program" DTS Luxury I and Luxury II models are completely sold out. Luxury III and Performance sedans are unaffected, except that on the used market those trims are a bigger upgrade, financially, than they were when new. A used Luxury III or Performance DTS is still stronger than new Lucerne CXS. The STS, supposedly the flagship, is seen as a midgrade on the used market, and the DTS is among the factors contributing to its poor resale value (Mgescuro: I said among).

The good news is that used (="rental/program") Lux I and Lux II (for 2007 V8 and Lux I) models are in high demand. That means that the next round that hits the market will go for higher prices (i.e. better resale value) at wholesale auctions. Ultimately, this demand and Caddy's superb certified pre-owned program will help solidify even the DTS Luxury I and II resale value. The downside is non-Caddy certified dealers peddling the same cars, with lower prices in the newspapers and their own dealer warranties added after the fact. Certification on a DTS isn’t as big of a deal as on the CTS. Perceived last-time buyers don’t really care.

That good news isn't much, at least in the short term. Wealthy old people pay cash for their vehicles, part of the reason for the demand on program DTS's. They're less concerned about resale value later than getting a low price now. While DTS Lux I/V8 and Lux II/LuxI (06/07) resale value might creep up and help Cadillac sell a few more new DTS's, GMAC SmartLeases and SmartBuys aren't going anywhere. Old people don't see themselves as needing another vehicle; salespeople jokingly refer to this as the "Last-time Buyer's Program."

My conclusion is that the DTS needs to end with the current generation, perhaps with one facelift and a Platinum Edition. The DTS is a latter-day cash cow that is costing Cadillac new sales and future brand equity in the form of a legitimate S-Class competitor. It hurts Cadillac because it is the perceived flagship, while the intended flagship, the smaller STS, can cost much more.

Losing/weaning the heavily price-conscious luxury frigate market to Buick, and allowing its premium features to filter down in favor of premium hardware, will ultimately allow both brands to offer better solutions to their clienteles without compromise. Right now, it's a matter of whether or not Cadillac is willing to face some growing pains, and accept a bit of rivalry within Buick.

Let the STS be what really should be, and get Buick-as-Cadillac product out of the way in favor of a true flagship. Can a true Buick flagship be bad for the rivalry?

Sincerely,

Insane W. Ghrankenstein

[stevecmh]

i agree somewhat....

They just totally need to redo the DTS into a more edger car....

but i do see how they could just totally dump the car all together.. but i think you would lose a whole bunch of sales to people who dont want a CTS

[tama z71]

I disagree. Rather than hop in my Canyon, wait ten minutes for the thing to heat up, and let it cool off while in Sheetz, my uncle offered to drive my cousin and I in the DTS.

Heated rear seats -- mucho bueno.

Big, comfy leather rear seats -- fantastical.

Easy entry (on the busted knee) -- glorious.

Cadillac always needs one BFL car -- that is, Big Fkin' Luxury -- and the DTS is a beacon of indulgent comfort and glorified luxury. I say keep it.

[smk4565]

The DTS is a necessary evil. They need a car for hearse/limo/taxi/rental fleets, and to appease the older folks that want a big car. The STS actually needs to become sportier, and can no way be used for limos, hearses, etc. Cadillac needs a whole different car to compete with the S-Class and 7-series, and actually that car should be smaller than the DTS also, the DTS is huge, 6 inches longer than a S-Class I think.

[dindak]

Originally Posted by smk4565

The DTS is a necessary evil. They need a car for hearse/limo/taxi/rental fleets, and to appease the older folks that want a big car. The STS actually needs to become sportier, and can no way be used for limos, hearses, etc. Cadillac needs a whole different car to compete with the S-Class and 7-series, and actually that car should be smaller than the DTS also, the DTS is huge, 6 inches longer than a S-Class I think.

I agree. Can't loose the DTS. Leave it and work on the rest,

[smk4565]

People that like the DTS or Lucerne would hate a CTS or STS. Much like no one is shopping a Town Car against a G35 or CTS.

[gdsm3]

I understand where your coming from, but I don't think killing DTS is the answer. What Cadillac needs to do is just up the ante with the STS and keep the DTS as the front drive cruiser that it is. Look at how successful Lexus is with the ES350......people love it because they get that fancy little "L" on a midsize, non-sporty, front wheel drive car at a much lower price. Sure you could probably get a Camry or Avalon with more options at a lower price, but it doesn't have that special Lexus aura surrounding it.

What Caddy needs to do is overshadow the DTS with a true ultimate luxury sedan that is high on style, technology, class, and a little bit of sport just like the S-class, etc. If they do kill the DTS I think they should replace it with a midsized sedan with the same kind of attributes (fwd, cruiser, barely worthy of the badge it wears).

[babyfacedkayos]

I feel conflicted about this. sure the dts isn't a tru competitor to the s class, but you know what its still fabulous. the most comfy rides I have ever taken have been in th back seat of either caddy or a lincoln.... but caddillac does need a true competitor to the big german and japanese cars.the only problem I see with this post is the o.p. makes it seem like the dts is a lucerne with extra bells and whistles. in reality isn't the lucerne a reskinned de-contented dts?

[Ghrankenstein]

Originally Posted by smk4565

People that like the DTS or Lucerne would hate a CTS or STS. Much like no one is shopping a Town Car against a G35 or CTS.

Or shopping the same vehicles against a Lucerne, especially a Lucerne with competitive equipment that is held back for its price point by the DTS, even if that price point is far lower than a DTS's.

The DTS's features aren't a liability. Its price point, size/status relationship, and fleet sales are a complete liability to Cadillac's brand status. If Cadillac is to sell an STS (which it might have decided it won't), it needs it to be an upgrade to the CTS, but not as much of an upgrade as the DTS.

If Cadillac is to sell a DTS, it can't be a fleet vehicle that will sell for $30,000 to old people, when a used non-fleet STS is supposed to hold more value.

[1969CamaroSS350]

I don't think they should kill the DTS. They would lose alot of sales and not just fleet. I doubt average DTS buyers are cross shopping it with the CTS and STS. Just like the Town Car, the DTS is a car that probably has a lot of repeat customers.

[rsbaker]

If I were the King of Cadillac I would ditch the car but keep the DTS name and affix it to a truly world class luxury sedan. The DTS should be the 7-Series or S-Class of Cadillac which is to say it should be rear wheel drive. DTS Should have outstanding V-8 performance and unparalleled elegance and style. Rock solid structure and bullet proof reliability. All of Cadillacs cars CTS, STS and a new DTS should always feel just as at home on the Autobahn and the Nueburgring as it does on Rodeo Drive and Pennsylvania Avenue. Cadillac of course should never again have any front wheel drive cars.

[Ghrankenstein]

I don't think they should kill the DTS. They would lose alot of sales and not just fleet. I doubt average DTS buyers are cross shopping it with the CTS and STS. Just like the Town Car, the DTS is a car that probably has a lot of repeat customers.

If I read one more comment like this, I'm likely to close the thread.

The current DTS is competing with itself on the pre-owned market.

The used (fleet/"program") DTS is lowering the resale value of not only the new DTS, but the smaller STS, thus dragging the STS down with it.

Thus the DTS is killing Cadillac from the inside out, when Cadillac has so much going for it. I'll leave it to Mgescuro to elaborate why Cadillac doesn't have so much going for it, but I feel that Cadillac has a lot going for it right now.

Killing the G-body DTS, and replacing it with a truly higher-line model, would resolve this.

[Evo69]

Originally Posted by smk4565

The DTS is a necessary evil. They need a car for hearse/limo/taxi/rental fleets, and to appease the older folks that want a big car. The STS actually needs to become sportier, and can no way be used for limos, hearses, etc. Cadillac needs a whole different car to compete with the S-Class and 7-series, and actually that car should be smaller than the DTS also, the DTS is huge, 6 inches longer than a S-Class I think.

Exactly. Cadillac needs the DTS for North American buyers and the business/Diplomat fleets. Why kill the DTS because of its obvious succsess? Its good at what it does, Cadillac should therefore concentrate on rebuilding its reputation as "The Standard of the World" with great cars to compete with the worlds best and it can be done. The DTS is traditional old school luxury cruiser that only Cadillac can make, nobody else can do it.

The only thing I see Cadillac doing to the DTS is continue to improve it with new technologies and maybe redesign it with heritage styling with a modern twist, other from that the DTS stays and make money for Cadillac.

[Kar Krazie]

I dunno. I really like the DTS. I know it is a Lucerne with a Caddy badge, but it is an awesome car. We rented one for a week on vacation, and it was great. We will most likely end up with a black one in our driveway by summer.

[BigAls87Z28]

While the DTS in its current form should be killed, I think that the DTS SHOULD continue as a speicalty model, something like a CLS from MB. Something with style a bit more off the track of the A&S. Something a bit more exciting, something built off the Sigma II platform. Maybe suicide doors? Perhaps a large touring coupe, something on par with a CL, call it the DTC, or Devillie Touring Coupe. I think that Caddy needs to think outside the box with the next gen DTS. No need to get rid of a name, just improve on its style and status. Move it away from the old mans car, and move it twards a fashonable vehicle that Caddy can sell at low numbers to keep the Sigma plant moving and always in production.
I belive that fleet needs to be left alone for Caddy. Leave it for Buick, Pontiac and Chevy. Caddy and Saturn should NOT have any involvement with fleet sales.
I think that the G-Body needs to go away all together. Move the Lurceren to the Zeta platform, move the DTS to SigII, and continue to produce a solid car.