Cadillac XTS: Brilliance or Failure
How the next Caddy is walking a fine line.
www.gminsidenews.com
February 16, 2010
By: Nick Saporito
We at GMI have had numerous debates abut the future of the Cadillac brand. Five years ago Cadillac was the only General Motors division within North America that appeared to have its collective head on straight. GM and Cadillac management were determined to make the Wreath and Crest brand into America’s BMW. Since then we’ve seen that direction take a detour with the new SRX and now the upcoming Epsilon-based XTS. Cadillac swears that the XTS is what luxury buyers are looking for. If that turns out to be the case, the XTS will be riveted as a brilliant move on GM’s part. If not, well, it will go down as another failure for post-renaissance Cadillac.
GM revealed the XTS Platinum Concept last month at the Detroit auto show. I witnessed the revealing of the car and have to say that it is a stunning design. It is one that you have to see in person to fully appreciate. However the design also reveals the most controversial aspect of the XTS: it’s Epsilon front-wheel drive underpinnings. From the A-pillar forward it is clear that the XTS is on a front-wheel drive platform simply due to the wheel-to-windshield ratio and overall short hood. In that respect, a Holden Commodore looks more like a performance luxury flagship.
Like I said though, overall the XTS design holds a lot of merit and looks like it belongs to the Cadillac brand. The interior of the XTS Concept was also excellent and the GM folks on stage were making some lofty promises that the interior we were looking at was very close to the real thing. I won’t hold my breath on that one, but I remain cautiously optimistic. Frankly, if it isn’t close to the real thing then GM is going to have a rough time with the automotive press.
The way I see it with the XTS is that it’s either going to be hailed as a brilliant move by GM or a complete failure. Yes, those are the absolute extremes on the spectrum of product success, but that is what we’re dealing with. The XTS is a risk-taking move on GM’s part, however I have yet to be convinced it is a risk that was worth taking.
Brilliant
Let’s, for a second, assume that the XTS is a complete success for Cadillac. Sales surpass all expectation, both internally and externally and it directly causes other luxury marquees to take notice of this rethought luxury market.
GM has been fairly vocal about the XTS being a technology leader for Cadillac. It’s already confirmed that the sedan will sport GM’s Two-Mode hybrid system and I have been hearing tid-bits from sources that the XTS may be the car that debuts GM’s first twin-turbo V6. Both of those powertrain developments would lead to positive results for the XTS, no question. Also in Los Angeles, Cadillac management suggested that the “X” in XTS holds a lot of meaning; suggesting that the car will only be available in all-wheel drive.
GM has based all of the above around the assumption (or is it market research?) that luxury buyers are shifting to “smarter” purchases that are not dripping with garish luxury details to announce that they and their six-figure salary have arrived. GM knows luxury customers still want luxuries, however the tastes are changing from high-performance, rear-wheel drive power sedans to more economical, technology-laden vehicles.
To my knowledge no luxury marquee has shifted any one model to that sort of formula, so the XTS is really going to be a pilot vehicle in that regard. That’s why I say the XTS could end up being brilliant. If this car does capture the modern-day, post Great Recession luxury buyer, it could very well be an excellent move.
Failure
Obviously the other potential outcome with the XTS is failure. I see this as a potential outcome for one fundamental reason. Even if the luxury market is moving to vehicles like the XTS, does that erase the fact that Cadillac has an image problem? To me it would be more important for Cadillac to be churning out vehicles like the CTS. I’m talking about luxury performance vehicles that compete head-to-head with their German counterparts and can hand them their ass on the track.
Cadillac is not seen as a full-on luxury provider and that is an issue if Cadillac wishes to make any headway in the European market. Even assuming the XTS will do well; it does not do anything to prove that Cadillac is a serious luxury contender with the Germans. And if Cadillac is going to give up on competing with the Germans, then I am convinced it’s time to give up on Cadillac. Buick has proved it can do premium and do it right. If Cadillac moves down-market, we all know Buick will turn out to be the winner in an internal sales battle.
If the car ends up being a failure it will indicate two things to us. Firstly, it is going to suggest that GM’s vision of a modern luxury market was a bit off and performance luxury is still the name of the game. Secondly, it’s going to further the 800-pound gorilla in the room: Cadillac’s image problem.
Zeta What?
As everyone knows by now, the XTS is the response to GM’s financial crisis, the government’s new CAFÉ legislation and an their alleged shift in the luxury market. The XTS was originally the Cadillac DT7, a Zeta-based rear-wheel drive flagship sedan that was sporting a turbo V6 with about 435 HP. To add insult to injury, I always heard it was a stunning vehicle. Perhaps that is why the XTS is a bitter pill to swallow?
To make matters a touch bitterer, I’m hearing the chances of a Cadillac Zeta sedan are very small. The idea is still on the table, but I have been told that the business case is very difficult and the issue was tabled as recently as a couple weeks ago. I just do not anticipate it working out at this point, so the XTS is all we’ll have in the large Cadillac sedan area.
I’ll be optimistic and say that maybe the XTS will be the perfect alternative. If the car does indeed sport a turbo V6, high-tech hybrid and other pioneering technologies it may make for an interesting product. However if it is that “good” Cadillac will not be capturing any DTS buyers, as the XTS will be priced out of their league. DTS buyers will likely move to the new Impala or the riveting new Toyota Avalon. That’s the main reason I say this car will be a brilliant success or a complete failure, no in-between. The car won’t have any target market to fall back on if it does not lure the six-figure crowd like Cadillac is hoping.
How the next Caddy is walking a fine line.
www.gminsidenews.com
February 16, 2010
By: Nick Saporito
We at GMI have had numerous debates abut the future of the Cadillac brand. Five years ago Cadillac was the only General Motors division within North America that appeared to have its collective head on straight. GM and Cadillac management were determined to make the Wreath and Crest brand into America’s BMW. Since then we’ve seen that direction take a detour with the new SRX and now the upcoming Epsilon-based XTS. Cadillac swears that the XTS is what luxury buyers are looking for. If that turns out to be the case, the XTS will be riveted as a brilliant move on GM’s part. If not, well, it will go down as another failure for post-renaissance Cadillac.
GM revealed the XTS Platinum Concept last month at the Detroit auto show. I witnessed the revealing of the car and have to say that it is a stunning design. It is one that you have to see in person to fully appreciate. However the design also reveals the most controversial aspect of the XTS: it’s Epsilon front-wheel drive underpinnings. From the A-pillar forward it is clear that the XTS is on a front-wheel drive platform simply due to the wheel-to-windshield ratio and overall short hood. In that respect, a Holden Commodore looks more like a performance luxury flagship.
Like I said though, overall the XTS design holds a lot of merit and looks like it belongs to the Cadillac brand. The interior of the XTS Concept was also excellent and the GM folks on stage were making some lofty promises that the interior we were looking at was very close to the real thing. I won’t hold my breath on that one, but I remain cautiously optimistic. Frankly, if it isn’t close to the real thing then GM is going to have a rough time with the automotive press.
The way I see it with the XTS is that it’s either going to be hailed as a brilliant move by GM or a complete failure. Yes, those are the absolute extremes on the spectrum of product success, but that is what we’re dealing with. The XTS is a risk-taking move on GM’s part, however I have yet to be convinced it is a risk that was worth taking.
Brilliant
Let’s, for a second, assume that the XTS is a complete success for Cadillac. Sales surpass all expectation, both internally and externally and it directly causes other luxury marquees to take notice of this rethought luxury market.
GM has been fairly vocal about the XTS being a technology leader for Cadillac. It’s already confirmed that the sedan will sport GM’s Two-Mode hybrid system and I have been hearing tid-bits from sources that the XTS may be the car that debuts GM’s first twin-turbo V6. Both of those powertrain developments would lead to positive results for the XTS, no question. Also in Los Angeles, Cadillac management suggested that the “X” in XTS holds a lot of meaning; suggesting that the car will only be available in all-wheel drive.
GM has based all of the above around the assumption (or is it market research?) that luxury buyers are shifting to “smarter” purchases that are not dripping with garish luxury details to announce that they and their six-figure salary have arrived. GM knows luxury customers still want luxuries, however the tastes are changing from high-performance, rear-wheel drive power sedans to more economical, technology-laden vehicles.
To my knowledge no luxury marquee has shifted any one model to that sort of formula, so the XTS is really going to be a pilot vehicle in that regard. That’s why I say the XTS could end up being brilliant. If this car does capture the modern-day, post Great Recession luxury buyer, it could very well be an excellent move.
Failure
Obviously the other potential outcome with the XTS is failure. I see this as a potential outcome for one fundamental reason. Even if the luxury market is moving to vehicles like the XTS, does that erase the fact that Cadillac has an image problem? To me it would be more important for Cadillac to be churning out vehicles like the CTS. I’m talking about luxury performance vehicles that compete head-to-head with their German counterparts and can hand them their ass on the track.
Cadillac is not seen as a full-on luxury provider and that is an issue if Cadillac wishes to make any headway in the European market. Even assuming the XTS will do well; it does not do anything to prove that Cadillac is a serious luxury contender with the Germans. And if Cadillac is going to give up on competing with the Germans, then I am convinced it’s time to give up on Cadillac. Buick has proved it can do premium and do it right. If Cadillac moves down-market, we all know Buick will turn out to be the winner in an internal sales battle.
If the car ends up being a failure it will indicate two things to us. Firstly, it is going to suggest that GM’s vision of a modern luxury market was a bit off and performance luxury is still the name of the game. Secondly, it’s going to further the 800-pound gorilla in the room: Cadillac’s image problem.
Zeta What?
As everyone knows by now, the XTS is the response to GM’s financial crisis, the government’s new CAFÉ legislation and an their alleged shift in the luxury market. The XTS was originally the Cadillac DT7, a Zeta-based rear-wheel drive flagship sedan that was sporting a turbo V6 with about 435 HP. To add insult to injury, I always heard it was a stunning vehicle. Perhaps that is why the XTS is a bitter pill to swallow?
To make matters a touch bitterer, I’m hearing the chances of a Cadillac Zeta sedan are very small. The idea is still on the table, but I have been told that the business case is very difficult and the issue was tabled as recently as a couple weeks ago. I just do not anticipate it working out at this point, so the XTS is all we’ll have in the large Cadillac sedan area.
I’ll be optimistic and say that maybe the XTS will be the perfect alternative. If the car does indeed sport a turbo V6, high-tech hybrid and other pioneering technologies it may make for an interesting product. However if it is that “good” Cadillac will not be capturing any DTS buyers, as the XTS will be priced out of their league. DTS buyers will likely move to the new Impala or the riveting new Toyota Avalon. That’s the main reason I say this car will be a brilliant success or a complete failure, no in-between. The car won’t have any target market to fall back on if it does not lure the six-figure crowd like Cadillac is hoping.