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Automotive News

January 13, 2015

Here is an interesting quote from the head of Cadillac:

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Automotive News retweeted
KrishnanAnantharaman @anantharaman ·

Exasperated Cadillac prez de Nysschen: "Let me tell you something. There has been no price cut in the CTS."@Automotive_News
 

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I don't think they every said that.
"They" didn't, "he" did. In fact, it's a "big priority".

DETROIT -- Cadillac President Johan de Nysschen said sales of the ATS compact sedan have been hurt by the Mercedes CLA and other lower-priced recent entries, and he plans to respond with an entry-level sedan of his own.

The ATS "is being compared to the new entrants that have come on in this exploding market segment populated by CLA and the Audi A3 sedan," de Nysschen said on the sidelines of the auto show here. "Suddenly, you have access to a Mercedes-Benz at $30,000, whereas the ATS is starting several thousand dollars higher."

De Nysschen said Cadillac is developing an entry level sedan slotted below the ATS to fend off those rivals, calling it a "big priority."

ATS sales sank 22 percent last year, to 29,890 cars sold, amid the more intense competition. The CLA came close to that in its first full year on sale: 27,365. Audi sold 22,250 A3s in about eight months.
 

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"They" didn't, "he" did. In fact, it's a "big priority".
OK...again with this?

Look, Cadillac=GM and Mercedes Benz = Mercedes Benz

If Mercedes Benz wants to sell an "entry level sedan" then it will be competing with either Buick and/or in some cases Chevy in the US, so, I don't see the reason why Cadillac has to worry about this part of the market.
 

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"They" didn't, "he" did. In fact, it's a "big priority".

DETROIT -- Cadillac President Johan de Nysschen said sales of the ATS compact sedan have been hurt by the Mercedes CLA and other lower-priced recent entries, and he plans to respond with an entry-level sedan of his own.

The ATS "is being compared to the new entrants that have come on in this exploding market segment populated by CLA and the Audi A3 sedan," de Nysschen said on the sidelines of the auto show here. "Suddenly, you have access to a Mercedes-Benz at $30,000, whereas the ATS is starting several thousand dollars higher."

De Nysschen said Cadillac is developing an entry level sedan slotted below the ATS to fend off those rivals, calling it a "big priority."

ATS sales sank 22 percent last year, to 29,890 cars sold, amid the more intense competition. The CLA came close to that in its first full year on sale: 27,365. Audi sold 22,250 A3s in about eight months.
I don't believe they or he or anyone else said that they would NOT build one is what I was saying. Since at least about September, it's been in just about every other press release from Cadillac.

I agree GM owner. At what price point is a Luxury car? And what does that do to your "perceved luxury" brand people are always talking about on GMI?
You shouldn't agree with him, because he doesn't know what he's talking about

Buick does not do anything for Cadillac. Cadillac exists and must plan its lineup in a vacuum, away from GM.

If it doesn't, the peanut gallery starts piping up and telling everyone how they have to think about Buick. Wrong.

If Buick died tomorrow, it should have no bearing on Cadillac's portfolio.

As far as price point... it's not price point as much as it is brand. Cadillac has to be out there to be relevant.
 

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I don't see Johan lasting that long at GM. GM announces price cut on the CTS and he comes out and says the opposite? Good way to get your walking papers. GM will get rid of him within the next year.
 
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So by this logic Cadillac would sell everything down to mini-cars and ignore what the rest of GM does. GM is the business to be optimized and Cadillac is responsible for GM's share of the luxury market. If single badge luxury companies trend down into the mid-market chasing volume at the expense of their luxury credentials it is not necessarily logical for Cadillac to follow suit.
 

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I don't see Johan lasting that long at GM. GM announces price cut on the CTS and he comes out and says the opposite? Good way to get your walking papers. GM will get rid of him within the next year.
This brings up this whole specious notion that Johan's Cadillac is truly 'separate' from GM.

But how separate?

In the end, Cad is still under the GM umbrella.

Yes, an absolute dictator can cut through the bureaucracy, but the problem is that the bureaucracy had been set up partially so that one 'strong man' couldn't ride the train off the rails in the effort to 'make the trains run on time.'
 

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So by this logic Cadillac would sell everything down to mini-cars and ignore what the rest of GM does. GM is the business to be optimized and Cadillac is responsible for GM's share of the luxury market. If single badge luxury companies trend down into the mid-market chasing volume at the expense of their luxury credentials it is not necessarily logical for Cadillac to follow suit.
Agree X1000.

CAD should be looking up market, not down. People are paying $70K for Chevrolet Suburbans, Corvettes - even a Camaro model.

Incomes for the '1 percent' are skyrocketing. Cad needs to offer cars above $100,000K, not below $30K.
 

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OK...again with this?

Look, Cadillac=GM and Mercedes Benz = Mercedes Benz

If Mercedes Benz wants to sell an "entry level sedan" then it will be competing with either Buick and/or in some cases Chevy in the US, so, I don't see the reason why Cadillac has to worry about this part of the market.
following that logic Chevy should cancel the Malibu and the Impala as it has Buick to sit in that price spot? not to mention the Tahoe


I agree GM owner. At what price point is a Luxury car? And what does that do to your "perceved luxury" brand people are always talking about on GMI?
the "perceived Luxury" is referring to the "value" the BRAND add to the product IE if ROLEX sold a $500 watch it is a bargain of the century BUT if TIMEX tries it is OVERPRICED
a 30K Buick HAS to be better Value then a 30K Caddy as the brand is worth LESS and that is why CADDY NEEDS a answer to the CLA IF the CLA is really "eating there lunch"

So by this logic Cadillac would sell everything down to mini-cars and ignore what the rest of GM does. GM is the business to be optimized and Cadillac is responsible for GM's share of the luxury market. If single badge luxury companies trend down into the mid-market chasing volume at the expense of their luxury credentials it is not necessarily logical for Cadillac to follow suit.
if there is a business case for a CADDY city car then yes they should explore it
 

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Something told me when I read the price reduction story, that was false. Repackaging and repricing options for certain models is actually very smart. That will be a great thing for CTS and should help boost sales. It's an awesome car and worth EVERY penny they are asking. MY '14 V-Sport is one amazing machine and what a looker!!!
 

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I don't see Johan lasting that long at GM. GM announces price cut on the CTS and he comes out and says the opposite? Good way to get your walking papers. GM will get rid of him within the next year.
Maybe. Maybe not. One careless statement, whether accurate or inaccurate means nothing. The only thing that counts is brand performance. How did each model sell? How are the ATPs? The launches? Did he move the chains down the field? That will be the litmus test, at the end of a year, two years, three. Think of some of the other complete fools GM has had for auto executives of one stripe or another. This guy couldn't be more incompetent than them if he left 90% of his brain at home every day.
 

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If Mercedes Benz wants to sell an "entry level sedan" then it will be competing with either Buick and/or in some cases Chevy in the US, so, I don't see the reason why Cadillac has to worry about this part of the market.
Buick will never ever ever ever ever ever ever ever ever have the brand cachet to comet with Mercedes-Benz.
That's why Mercedes (and Audi and BMW) will win this war against Buick, Acura, etc because they have the attractive and better brand that everyone wants to be associated with.
 

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A price cut would not have mattered - a cramped product that is that tacky looking won't sell at any price especially when the ATS is killing it and doesn't offer any less usable room in the back seat.

Cadihack has proved that adding more models does nothing to drive sales - it just proves it can't build one decent product.
 
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