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spinning off Escalade doesn't fit in with any strategy they've hinted at.
I think Cadillac marketing dweebs are still pursuing strategies to have Cadillac vehicles be taken seriously by customers of the Tier 1 brands (BMW, Mercedes-Benz, Audi, and Lexus). Since Escalade is the one Cadillac product that those customers care about at all, an Escalade brand or sub-brand may help. Then again, it may be too late as you said.
 

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Considering the whole world shut down March 2020, I don't think anyone should be too excited to tout YOY gains for the next year. Of course they are going to show huge gains...
Not only that, I think we are also seeing pent up demand from all the people who put off major purchases due to shut downs and general uncertainty most of last year.
 

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Yup, all of GM's U.S. divisions registered a healthy increase in retail sales in March 2021 compared to March 2020:
  • Cadillac, up 43%
  • Buick, up 43%
  • GMC, up 23%
  • Chevy, up 13%
With all the craziness of Covid and chip shortages, etc. these increases are hard to interpret. Market share will be more telling, and even that will be questionable with some companies more impacted by chip shortages than others. Toyota is largely unaffected, I think GM didn't raise the red flag until a month or so after Ford and a few others....
 

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I wonder if their "interesting" CT4/CT5 pricing structure has something to do with it, funneling a lot of potential CT4 sales over to the CT5 (of which, CT5 sales aren't great either).
Also the lack of safety tech in base models might be hurting sales. The base CT4 was upgraded a bit for 2021 but you still need PremLux/Sport and a package to get things like adaptive cruise which is standard on say Honda Accord.
 

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Toyota is largely unaffected, I think GM didn't raise the red flag until a month or so after Ford and a few others....
What's somewhat ironic is that Toyota Motor Sales USA has been operating with the lowest inventory levels of any automotive OEM in the U.S. market for at least the past nine months. This is intentional; Toyota has traditionally been the best automaker when it comes to matching supply with customer demand and keeping vehicle inventories reasonably low.



Though Toyota has been largely unaffected by supply chain issues for semiconductor devices at least compared to other automakers, that constraint along with more recent shortages of petrochemical products like foams (due to weather in the Southern U.S. about a month ago) are now starting to affect Toyota. Recently, the company has idled some of its U.S. plants, including the powertrain facility in West Virginia and the consolidated facility in Kentucky.

I wonder if Toyota's traditionally lean operating procedures may end up biting them amid these global supply chain challenges...
 

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I think Cadillac marketing dweebs are still pursuing strategies to have Cadillac vehicles be taken seriously by customers of the Tier 1 brands (BMW, Mercedes-Benz, Audi, and Lexus). Since Escalade is the one Cadillac product that those customers care about at all, an Escalade brand or sub-brand may help. Then again, it may be too late as you said.
Cadillac is a Domestic CUV/SUV Brand that sells a few sedans, about he only thing that separates them from Lincoln.

With all the craziness of Covid and chip shortages, etc. these increases are hard to interpret. Market share will be more telling, and even that will be questionable with some companies more impacted by chip shortages than others. Toyota is largely unaffected, I think GM didn't raise the red flag until a month or so after Ford and a few others....
Exactly, I don't want to say the numbers are "garbage" but it's more about survival in the current environment.

A lot of extra work minimizing production line shut-downs, and adequate inventory, as a company, you don't really even know if your product/pricing are right, or were you the one that had something to sell? And as I say this, our business unit is going through this as we speak. We had some changes to our product, increased our prices and cut-back some customers deeper discounts, January was mostly catch-up from year-end shut-down and orders that were placed before the increase, February our sales were light, but March we were well above plan, even with B/O that we couldn't fill because of component shortages.

One thing for sure (for GM) because of tight supply, supply/demand is out of balance, on most products, keeping incentives low, so profits should be good; assuming COGS didn't go up too much.

There was a story in Automotive News the other day about "Lease Buyouts" with new & used car prices up, it makes more sense to buyout your end-of lease vehicle, you know the vehicle, a comparable used is similar price, and a new purchase or lease is a lot more than 3 years ago. - This is more good news, because even though auction prices are up, we all know lease residual prices are a lot more than the net price a manufacturer would get at auction.
 
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What's somewhat ironic is that Toyota Motor Sales USA has been operating with the lowest inventory levels of any automotive OEM in the U.S. market for at least the past nine months. This is intentional; Toyota has traditionally been the best automaker when it comes to matching supply with customer demand and keeping vehicle inventories reasonably low.



Though Toyota has been largely unaffected by supply chain issues for semiconductor devices at least compared to other automakers, that constraint along with more recent shortages of petrochemical products like foams (due to weather in the Southern U.S. about a month ago) are now starting to affect Toyota. Recently, the company has idled some of its U.S. plants, including the powertrain facility in West Virginia and the consolidated facility in Kentucky.

I wonder if Toyota's traditionally lean operating procedures may end up biting them amid these global supply chain challenges...
I am very happy I am not in a product planning profession or responsible for ordering parts, especially in the auto industry. It has got to be tough to forecast the future and such huge quantities of money at stake. I bet it is one of those thankless jobs - just doing your job if you get it right and all sorts of grief if you get it wrong.

I'd love to see Toyota get bit in the ass :D

Though I wonder if they are expecting a downturn over the next couple of years. The government can't keep sending out checks....
 

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Cadillac is a Domestic CUV/SUV Brand that sells a few sedans, about he only thing that separates them from Lincoln.



Exactly, I don't want to say the numbers are "garbage" but it's more about survival in the current environment.

A lot of extra work minimizing production line shut-downs, and adequate inventory, as a company, you don't really even know if your product/pricing are right, or were you the one that had something to sell? And as I say this, our business unit is going through this as we speak. We had some changes to our product, increased our prices and cut-back some customers deeper discounts, January was mostly catch-up from year-end shut-down and orders that were placed before the increase, February our sales were light, but March we were well above plan, even with B/O that we couldn't fill because of component shortages.

One thing for sure (for GM) because of tight supply, supply/demand is out of balance, on most products, keeping incentives low, so profits should be good; assuming COGS didn't go up too much.

There was a story in Automotive News the other day about "Lease Buyouts" with new & used car prices up, it makes more sense to buyout your end-of lease vehicle, you know the vehicle, a comparable used is similar price, and a new purchase or lease is a lot more than 3 years ago. - This is more good news, because even though auction prices are up, we all know lease residual prices are a lot more than the net price a manufacturer would get at auction.
Yes! To sum it it, I'm glad GM is still in business and making profits. Had Covid-19 hit in the early 2000's, GM, Ford and Chrysler probably wouldn't have been able to make it.
 

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What's somewhat ironic is that Toyota Motor Sales USA has been operating with the lowest inventory levels of any automotive OEM in the U.S. market for at least the past nine months. This is intentional; Toyota has traditionally been the best automaker when it comes to matching supply with customer demand and keeping vehicle inventories reasonably low.
Toyota has far fewer dealers, than GM - Which means they can actually have less supply, yet better selection at the same time, you never find the exact Toyota model in the trim, options and color you want at some obscure small town Toyota Dealership, because those dealerships don't exist.
 

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Toyota has far fewer dealers, than GM - Which means they can actually have less supply, yet better selection at the same time, you never find the exact Toyota model in the trim, options and color you want at some obscure small town Toyota Dealership, because those dealerships don't exist.
Toyota Motor Sales USA does dealer relations better than anyone else - much better than GM. Lexus and Toyota almost always rank in the top five in NADA's Dealer Attitude Surveys, and usually they capture the top two spots. Here are the results from Winter 2019:

NADA Dealer Attitude Survey Winter 2019 - measures dealer satisfaction with franchise value and policies and the brands' field staffs
Rank
Brand
1
Lexus​
2
Toyota​
3
Subaru​
4
Honda​
5
Porsche​
6
Mercedes-Benz​
7
Audi​
8
Volvo​
9
Jeep​
10
Acura​
Source: NADA​
 

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Perhaps GM dealerships aren't happy with the amount of incentives needed to move units?
 

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Right off the bat, GM is obviously starting to lose customers in the traditional midsize car/crossover slots with the Equinox/Terrain/Blazer all losing sales this year, and their sedans all disappearing. Regal and Impala are dead, and the Malibu is all but dead.
They are picking up cheaper sales with the South Korean/Chinese built Buicks and Trailblazer, but this will be a problem very soon if the Equinox/Terrain twins are left without major refreshes.

Bolt sales are up in that midsize price range, but we know that they are not profitable vehicles right now.

Lexus has double the sales of Cadillac for the quarter... GM should find that horrifying, but they're probably ecstatic with the profits the Escalade is generating.
Lexus is selling similar products to GMC/Buick Franchise than Cadillac at this point
 

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Lexus is selling similar products to GMC/Buick Franchise than Cadillac at this point
There's overlap between Lexus' U.S. product lineup and both GMC/Buick and Cadillac:

Lexus modelGM competitors
ISCT4, CT5
ES--
LS--
UXEncore GX
NXEnvision, Terrain Denali, XT4
RX, RXLAcadia Denali, XT5, Enclave, XT6
GX--
LXYukon Denali, Escalade
RC--
LC--
 
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There's overlap between Lexus' U.S. product lineup and both GMC/Buick and Cadillac:

Lexus modelGM competitors
ISCT4, CT5
ES--
LS--
UXEncore GX
NXEnvision, Terrain Denali, XT4
RX, RXLAcadia Denali, XT5, Enclave, XT6
GX--
LXYukon Denali, Escalade
RC--
LC--
I really don't know why you entertained that....Lexus >>>>>>>>>>>>>>>>> Buick ("Chevy+") & Lexus > Cadillac (except the Escalade...for now)
 

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I really don't know why you entertained that....Lexus >>>>>>>>>>>>>>>>> Buick ("Chevy+") & Lexus > Cadillac (except the Escalade...for now)
My intention was to point out that there are as many Cadillac products as Buick/GMC products in certain segments where Lexus has an entry, and that there other segments in which GM has no entry at all to compete with Lexus.

Yes, Lexus is higher than Cadillac and much higher than GMC or Buick when it comes to brand reputation. I don't think anyone doubts that, other than maybe a few marketing dweebs at GM and a certain "Bott" on this forum that seems to have disappeared.
 

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Yup, all of GM's U.S. divisions registered a healthy increase in retail sales in March 2021 compared to March 2020:
  • Cadillac, up 43%
  • Buick, up 43%
  • GMC, up 23%
  • Chevy, up 13%
You got to take into account, last year March, everything shut down, so there was not much there to consider in terms of sales prior year period comparison.
 

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You got to take into account, last year March, everything shut down, so there was not much there to consider in terms of sales prior year period comparison.
My mistake, those numbers are actually Q1 2021 compared to Q1 2020 (not the month of March alone in 2021 and 2020).
 

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Amazing that the $100k Escalade is Cadillac's top seller. Just shows people are willing to pay for a Cadillac when they get "it" right. CT4 sales, while disappointing, doesn't surprise me. And they really need to improve the XT4, that should be Cadillac's volume leader, not the Escalade.

The new production tracking software for the dealers sounds neat. My comment is, "why did that take so long to get software like this"?
The XT6 in China is getting an e-assist engine based on the 2.0T. It gets 13 more horsepower, and 37 more torque, and the electric motor is said to make the engine quieter and smoother, and despite the extra power, it gets better gas mileage.

They need to bring that engine from China and put it as the base engine in both the XT4 and XT5.

It could end some of the NVH issues in the XT4. Create some more luxuriously sculpted seats and a modification of the dash to give it more gravitas, make the active dampers available on the premium luxury, and make an AKG system available, and it would probably change the character of the XT4 right away.

I notice that Mercedes offers an acoustics package that brings more sound deadening materials to the E Class, and Cadillac should consider developing such a package or its vehicles as well, including the XT4.
 

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The XT6 in China is getting an e-assist engine based on the 2.0T. It gets 13 more horsepower, and 37 more torque, and the electric motor is said to make the engine quieter and smoother, and despite the extra power, it gets better gas mileage.

They need to bring that engine from China and put it as the base engine in both the XT4 and XT5.

It could end some of the NVH issues in the XT4. Create some more luxuriously sculpted seats and a modification of the dash to give it more gravitas, make the active dampers available on the premium luxury, and make an AKG system available, and it would probably change the character of the XT4 right away.

I notice that Mercedes offers an acoustics package that brings more sound deadening materials to the E Class, and Cadillac should consider developing such a package or its vehicles as well, including the XT4.
Bring it on, no reason they shouldn't use the hybrid engine in the USA.

And yes - AKG should be available on all Cadillacs. Customers can't give Cadillac money if it isn't offered! I definitely would've considered it. My take on the luxury market of 50 years ago was that biggest = best. Things have changed - I have zero need for something the size of an Escalade. GM is cutting off the customer who wants a high end, small vehicle with every bell and whistle available on the Escalade.
 
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