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Information Source: Edmunds.com



2014 Cadillac CTS

$4,000 Alternative Purchase Allowance Cash may not be combined with 0.00 % APR - 3.90 % APR and vehicle must be financed through Ally Financial Inc.

Bonus $ Offer Type Start End
$2,000 11/01/2014 12/01/2014

Loyalty $ Offer
Lease Loyalty Bonus Cash is available towards leasing or retail purchases to customers who have a current Buick, Cadillac, Chevrolet, or GMC lease through Ally Financial, GM Financial, or US Bank. Customer is not required to terminate their current lease. Offer can be transferred to individuals residing in the same household.

Bonus $ Offer Type Start End
$1,500 Loyalty 11/01/2014 01/05/2015

Conquest Bonus $ Offer
Competitive Lessee Bonus Cash is available towards leasing or retail purchases to customers who currently lease a 2004 or newer non-GM (Buick, Cadillac, Chevrolet, GMC, HUMMER, Pontiac, or Saturn) passenger car or light duty truck. Lease termination is not required. Offer may be transferred to individuals residing in the same household.

Bonus $ Offer Type Start End
$1,000 Conquest 11/01/2014 01/05/2015
 

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Add dealers with overstocked models, assumed GM dealer cash, production cuts, the stated intention of not lowering pricing and the above incentives, and the conclusion is simple: now may be the best time ever to put a CTS in your driveway.

If Cadillac's new boss sticks to his plan, we should never see a deal like this again. Key word: "If".
 

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And the haters gonna hate hate hate hate hate. Call me a hater when it comes to Cts pricing fom day 1. All the people on here who said Cadillac needed to raise their prices, here ya go. Granted this is an attemptn to get of last MY inventory, the Cts is priced too high.
 

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And the haters gonna hate hate hate hate hate. Call me a hater when it comes to Cts pricing fom day 1. All the people on here who said Cadillac needed to raise their prices, here ya go. Granted this is an attemptn to get of last MY inventory, the Cts is priced too high.

Proof that Cadillac arent where they should be.
 

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He said he was going to get rid of bloated inventory and change production strategy to keep it more exclusive. End of MY blowout is the best way to do it really.
Yeah, but slashing prices isn't the way to go about it. Want to get rid of inventory bloat?

1.) Price your cars a little lower than the competition from the get-go, both to offer a reason to buy it, and to also not get stuck with a ton of them and have to slash prices at the end of the model year.
2.) Don't build them as fast as you can if you don't agree with number 1.

It's really not that difficult. How about instead of pumping them out as fast as they can from LGR with sub-par build quality, they take time to build them and ensure the build quality is best in class?
 

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But luxury buyers don't buy based on value, so pricing lower than the competition does nothing. He also said he doesn't want them built as fast as they were which is part of changing the production strategy. You're right, pumping them out was the wrong way to do it and he thought so too.
 

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Well, there you go......


Set the MSRP where ever you want. The market will tell where you should be pricing at.
The market will tell you where you should be pricing at only so long as you're unwilling to accept the size of the market for your cars.

GM needs to build more Alphas and fewer Cadillacs. I've said it before; they need to cut production and place an artificially low ceiling on sales to keep a shortage of product with less elastic pricing that will be more dynamic and turnover more quickly.

They need to work more on a bespoke or build-to-order program and actually suggest that rather than having dealers poopoo it because it's not an immediate sale.

Walk into a Mercedes dealership, ask what it would look like if you want to order an S-Class... "$2,000 and a few weeks, and you get the car of your dreams. It's a great idea if you don't need a car immediately."
Walk into a Cadillac dealership, suggest you want to order a new CTS... "You don't want to do that, it'll take weeks, we would need a deposit now, and we have inventory on the lots or we could swap and get you whatever you want."

You probably aren't going to make a whole lot of money for a while, but adjust production and shift capacity into other high margin and niche products like, say, a Grand National and a new SS. Maybe if you actually build your crossovers off Alpha rather than C1xx and D2xx or whatever they're going to use, you might actually have some volume off the platform.

There goes Johann's plan. :rolleyes:

Arrogance and overconfidence will only get you so far, Cadillac.
It was an inventory surplus that already existed, and they NEED to move these 2014s.

Part of his plan is just to slash inventories. You can't maintain steady pricing when you have a surplus of cars nobody wants to buy. See if it happens again in the next year or two, and you might have a case then.

Cute attempt at patronization, though.
 

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But luxury buyers don't buy based on value, so pricing lower than the competition does nothing. He also said he doesn't want them built as fast as they were which is part of changing the production strategy. You're right, pumping them out was the wrong way to do it and he thought so too.
You're right. They don't buy value vehicles (see: 2008-2013 CTS). But they do however like a better deal. Only a fool wouldn't.

I'm not saying to price the CTS at $39,995. How about instead of $46,340, they start it at $44,995 instead? And drop the price of the V6 down to $51,995 instead of over 54 grand?

CTS is a very competitive vehicle, it just isn't worth what they ask for it, just because of the Cadillac badge up front. It would be a totally different story if it were a BMW or MB badge up front on the CTS.
 

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It was an inventory surplus that already existed, and they NEED to move these 2014s.

Part of his plan is just to slash inventories. You can't maintain steady pricing when you have a surplus of cars nobody wants to buy. See if it happens again in the next year or two, and you might have a case then.

Cute attempt at patronization, though.
It was a problem that they SHOULD have learned from earlier with the 2013 MY ATS. Yet they decided to go about it the same way with both the 2014 ATS and the 2014 CTS.

http://www.autonews.com/article/201...n-hefty-spiffs-sink-residuals-of-cadillac-ats

They knew what would happen if they price a car too high and build too many of them, but they did it anyways. Why they always try to pump them out as fast as possible, I have no clue. It's a stupid idea, and it's gotten them in trouble more than once. And pricing them in the stratosphere is only going to get them in trouble, which it has, AGAIN.
 

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Yeah, but slashing prices isn't the way to go about it. Want to get rid of inventory bloat?

1.) Price your cars a little lower than the competition from the get-go, both to offer a reason to buy it, and to also not get stuck with a ton of them and have to slash prices at the end of the model year.
2.) Don't build them as fast as you can if you don't agree with number 1.

It's really not that difficult. How about instead of pumping them out as fast as they can from LGR with sub-par build quality, they take time to build them and ensure the build quality is best in class?
1) They already did.
2) They aren't going to.
3) An intelligent person would combine both strategies.

But luxury buyers don't buy based on value, so pricing lower than the competition does nothing. He also said he doesn't want them built as fast as they were which is part of changing the production strategy. You're right, pumping them out was the wrong way to do it and he thought so too.
That's not entirely true. Everyone buys on value. What that value is to one person will not be what it is to another, though.

MSRP is also a psychological thing, too. Incentives and lower pricing will help bring down lease payments and give you a more competitive car.

Someone's always first among equals, and a lower lease payment is always more attractive than a higher one. Whether or not the more expensive car is worth it is another issue entirely, but it gives the buyer something to think about.
 

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1) They already did.
Clearly, it isn't enough. ATS needs to be a little bit cheaper, as does the CTS. IMHO ATS should start at around $31,995 for the 2.5L RWD, and the CTS should start at $44,995 for the 2.0T RWD.

ATS 2.5L also needs AWD to compete with the 320i xDrive. And Vsport needs AWD too.

2) They aren't going to.
I don't believe it. History tells us they don't learn from their mistakes.

3) An intelligent person would combine both strategies.
Agreed.
 

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Yeah, but slashing prices isn't the way to go about it. Want to get rid of inventory bloat?

1.) Price your cars a little lower than the competition from the get-go, both to offer a reason to buy it, and to also not get stuck with a ton of them and have to slash prices at the end of the model year.
2.) Don't build them as fast as you can if you don't agree with number 1.

It's really not that difficult. How about instead of pumping them out as fast as they can from LGR with sub-par build quality, they take time to build them and ensure the build quality is best in class?
Sub-par build quality?! Where do you get that from? I haven't seen that many issues with the CTS/ATS in general...

Regardless, this will equalize itself once the Gen6 Camaro is running down the line at LGR. Production of that car should take up more of the volume in production as compared to Cadillac models.
 

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Wrong.

It was a problem that they SHOULD have learned from earlier with the 2013 MY ATS. Yet they decided to go about it the same way with both the 2014 ATS and the 2014 CTS.

http://www.autonews.com/article/201...n-hefty-spiffs-sink-residuals-of-cadillac-ats

They knew what would happen if they price a car too high and build too many of them, but they did it anyways. Why they always try to pump them out as fast as possible, I have no clue. It's a stupid idea, and it's gotten them in trouble more than once. And pricing them in the stratosphere is only going to get them in trouble, which it has, AGAIN.
You're not even arguing about the same thing, you just don't want to be wrong.

http://www.autonews.com/article/201...n-hefty-spiffs-sink-residuals-of-cadillac-ats
January 13, 2014
http://media.gm.com/media/us/en/gm/.../Pages/news/us/en/2014/Jul/0711-cadillac.html
Jul 11, 2014
http://www.autonews.com/article/201...ant-3-weeks-to-trim-cadillac-ats-cts-supplies
August 8, 2014
http://www.autonews.com/article/201...new-chief-vows-no-retreat-on-pricing-strategy
September 15, 2014
Because you seem unable to grasp when Johan's plan would or wouldn't be in effect or when he would still be dealing with previous leadership decisions (or lack thereof) at Cadillac versus grappling with the inadequacies of his own plan, I've reconstructed a rough timeline for you.

I expect some type of weakly assembled, straw man argument like what I'm replying to, so to avoid one I'll attempt to avoid one and bring clarity to the argument by first asking you what exactly you meant by:

There goes Johann's plan. :rolleyes:

I can't say I'm surprised. Arrogance and overconfidence will only get you so far, Cadillac.
You aren't surprised about... what? What is the arrogance and overconfidence Cadillac is now exhibiting with its decisions? What does excess inventory of 2014s have to do with Johan de Nysschen's plan for Cadillac?
 
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