The General Strikes Again (Caddy Rebates=continuing degration of brand, Caddy thread)
01-14-04, 05:54 PM
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The General Strikes Again
Also from the Jan. 14, WSJ
"GM Gives Incentives For Cadillac SUVs
Holding a hefty surplus of its highly touted Cadillac SRX crossover sport-utility vehicle, General Motors Corp. has begun offering its dealers $1,500 in cash incentives to entice customers who trade in rival models to buy the slow selling seven passenger vehicle.
The incentives come on top of a separate promotion offering Cadillac dealers payments of $2,000 to $3,000. Dealers who accept the incentive cash can offer customers some or all of that cash in the form of a discount.
GM has promoted the Cadillac SRX as a rival to luxury crossover SUVs such as the BMW X5 and Lexus RX 330. It is one of a volley of new models GM executives have said will reduce the auto maker's reliance on big rebates in the U.S. market.
But European and Japanese auto makers have so far had more success than GM, Ford Motor Co. or DaimlerChrysler AG's Chrysler Group in capitalizing on the growing consumer demand for car-based crossover wagons.
Cadillac dealers had expected the crisp handling SRX to be a hit but acknowledge that sales so far have been slow. 'People like them, but it's too much money,' said Cadillac dealer Hoot McInerny of Southfield, Mich."
That didn't take long. No sense giving those incentives direct to the buyer when a hard working Caddy salesman can get them while flogging their models.
"GM Gives Incentives For Cadillac SUVs
Holding a hefty surplus of its highly touted Cadillac SRX crossover sport-utility vehicle, General Motors Corp. has begun offering its dealers $1,500 in cash incentives to entice customers who trade in rival models to buy the slow selling seven passenger vehicle.
The incentives come on top of a separate promotion offering Cadillac dealers payments of $2,000 to $3,000. Dealers who accept the incentive cash can offer customers some or all of that cash in the form of a discount.
GM has promoted the Cadillac SRX as a rival to luxury crossover SUVs such as the BMW X5 and Lexus RX 330. It is one of a volley of new models GM executives have said will reduce the auto maker's reliance on big rebates in the U.S. market.
But European and Japanese auto makers have so far had more success than GM, Ford Motor Co. or DaimlerChrysler AG's Chrysler Group in capitalizing on the growing consumer demand for car-based crossover wagons.
Cadillac dealers had expected the crisp handling SRX to be a hit but acknowledge that sales so far have been slow. 'People like them, but it's too much money,' said Cadillac dealer Hoot McInerny of Southfield, Mich."
That didn't take long. No sense giving those incentives direct to the buyer when a hard working Caddy salesman can get them while flogging their models.
01-14-04, 06:25 PM
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That sucks. I'm a big fan of the SRX. I think it looks great and from the reviews, and its supposedly a great driver's SUV with the V8 and AWD. I had a feeling the price was gonna end up raping Cadillac. Turns out my suspicions were right.
James
James
01-15-04, 10:15 AM
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Let's face it, the truck was way overpriced to begin with. Why it makes sense to continue to price domestic cars and trucks higher than they're likely to sell is beyond me. My local paper is full of $2K - $10K off of Ford, GM and DC products. That has to kill resale values for the poor schmucks who actually paid MSRP.
And now Caddy wants to do the same thing with the XLR?
I don't understand the thinking. Yes, you make a few incremental bucks on the first few suckers. But what about the rest of hte people you turn off and don't even lure into your dealership? Why not price the cars more realistically to start with?
And now Caddy wants to do the same thing with the XLR?
I don't understand the thinking. Yes, you make a few incremental bucks on the first few suckers. But what about the rest of hte people you turn off and don't even lure into your dealership? Why not price the cars more realistically to start with?
01-15-04, 11:04 AM
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Count me in as a guy who loved the pictures and concept of the SRX. But in person, this car is very stationwagon looking. Plus, try and configure one on GMs site - what a nightmare (options like 4 wheel drive require NAV or something like that) and boy do costs add up quick. I seem to remember getting into the mid to upper 50s without too much trouble.
01-15-04, 12:14 PM
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A relative bought a Yukon Denali so when I went to the auto show, I checked it out. Because of the hubbub about the SRX, I wound up looking at it. Might have a slightly better powerplant and some suspension tweaking but same old general. Too much Denali inside for me with minor trim changes. My relative paid over 50 for his Denali so I have no doubt the SRX is upper 50's. Not enough value for that price. I am starting to really want US automakers to pull off a surprise or two but they just don't seem to be able to get competitive for me.
01-15-04, 12:51 PM
#7
Originally posted by Da Hapa
I don't understand the thinking. Yes, you make a few incremental bucks on the first few suckers. But Why not price the cars more realistically to start with?
I don't understand the thinking. Yes, you make a few incremental bucks on the first few suckers. But Why not price the cars more realistically to start with?
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01-15-04, 01:53 PM
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don't understand the thinking. Yes, you make a few incremental bucks on the first few suckers. But what about the rest of hte people you turn off and don't even lure into your dealership? Why not price the cars more realistically to start with?
It is pretty ARROGANT to have a 1/2 **** luxury car company for the past 20-30 years, make a couple of new models, and expect to sell them the same price as the competition? THat is nuts. BTW, the SRX has the same interior as the CTS. Imagine the GX 470 having the same interior as the ES 300 or IS 300.
Another bone-head move.The SRX should have started at 30 and went to 45k tops. Not 40k to 55k tops. 55k is Esclade territory.
Not to mention SUV competition is more competative than ever.
01-15-04, 02:02 PM
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Its worse than you guys think. I will admit pricing out the STS prior to getting my Lexus - yea, I ADMIT IT OK! Seats are awesome and I like the looks of it.
My point is you can go over $60K real easy with some of the cool options on the STS and there is no way that car is worth $60K - especially when they go for 1/3 of that after 4 years. If they wanted to move those things, they would have them priced at $48K with everything. As it is, they stopped making the STS for now and only make the SLS.
My point is you can go over $60K real easy with some of the cool options on the STS and there is no way that car is worth $60K - especially when they go for 1/3 of that after 4 years. If they wanted to move those things, they would have them priced at $48K with everything. As it is, they stopped making the STS for now and only make the SLS.
01-15-04, 02:08 PM
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Its worse than you guys think. I will admit pricing out the STS prior to getting my Lexus - yea, I ADMIT IT OK! Seats are awesome and I like the looks of it
And new Infiniti M45s are selling for 10k off sticker!!! . 35k for a new M45. I'd rather get that.
01-15-04, 02:22 PM
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Originally posted by 1SICKLEX
And new Infiniti M45s are selling for 10k off sticker!!! . 35k for a new M45. I'd rather get that.
And new Infiniti M45s are selling for 10k off sticker!!! . 35k for a new M45. I'd rather get that.
01-15-04, 03:13 PM
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New STS Coming in 2005
This is the first official photograph of Cadillac's 2005 STS. The replacement for the aging Seville sedan is designed to serve as the General Motors brand's flagship, and that's why you'll find the fingerprints of GM "Car Czar" Bob Lutz all over the new car. Lutz pushed back the project a few months in order to soften and add curve to the hard edges originally planned for the '05 STS - as can be seen in the doors and roof line, though overall, the luxury sedan bears an unmistakable similarity to the razor-sharp CTS. Inside, the car will feature a significantly refined cockpit, the first step in Cadillac's effort to upgrade its interiors.
A high-performance V-Series version will follow, perhaps a year to 18 months later, according to Cadillac sources. The new STS will be shown in the "flesh" at April's New York auto show and will go on sale in the third quarter of this year.
The STS is intended to provide an attainable halo around a brand that has "stopped the slide and gained momentum," said Cadillac General Manager Mark LaNeve, but there's plenty of work to do before Caddy can truly reclaim its long-held position as the "standard of the world." Propelled by a December surge in SUV sales, the automaker recorded volume of 216,090 last year, its best performance since 1990, LaNeve declared during the Automotive News World Congress.
How much more growth is possible? Not as much as some might expect. At its peak, two decades ago, Caddy seemed hell-bent to push sales as far as they could go. That move backfired, causing quality problems and diluting the brand image - and eventually led to a collapse in demand, with Caddy sales slipping behind import rivals like Mercedes-Benz, BMW and Lexus. The goal, according to LaNeve, is to rebuild that sense of exclusivity, even if that means holding sales down to no more than around 240,000 units a year in the U.S.
After a series of setbacks and delays, Cadillac is finally making a serious move on overseas markets. It has a new dealer network set to grow across Europe. And there are serious opportunities in China, which LaNeve noted, is the third largest market for BMW's big 7-Series.
China could prove an especially good market for the ultra-luxury car now under development. It's based on the Cadillac Sixteen concept vehicle that proved the big hit of the 2003 North American International Auto Show. A production version likely won't have the big V-16 shown in that prototype, but insiders hint a V-12 is likely. While there's no formally approved program, LaNeve is confident a super-lux Caddy will reach market "in some reasonable timeframe after 2007."
At the other end of the spectrum, Caddy has effectively ruled out a so-called entry-lux model below the CTS. But there could be other products coming. There's an updated version of the DeVille due next year, for one thing. And Cadillac is looking at the hybrid market, perhaps with a gasoline-electric version of the SRX. As the declared technology leader among the many GM divisions, it would make sense to introduce hybrids and other advanced powertrain systems at Cadillac, according to LaNeve.
Caddy's general manager acknowledged that the division hasn't been without its setbacks lately. The launch of the SRX got off to a slow start, he said. Initial emphasis was placed on fully loaded V-8 models priced as high as $60,000. Inventory quickly built up and Caddy had to kick in with incentives. With more V-6 versions priced around $40,000 rolling into showrooms, sales have been picking up sharply. -Paul A. Eisenstein
This is the first official photograph of Cadillac's 2005 STS. The replacement for the aging Seville sedan is designed to serve as the General Motors brand's flagship, and that's why you'll find the fingerprints of GM "Car Czar" Bob Lutz all over the new car. Lutz pushed back the project a few months in order to soften and add curve to the hard edges originally planned for the '05 STS - as can be seen in the doors and roof line, though overall, the luxury sedan bears an unmistakable similarity to the razor-sharp CTS. Inside, the car will feature a significantly refined cockpit, the first step in Cadillac's effort to upgrade its interiors.
A high-performance V-Series version will follow, perhaps a year to 18 months later, according to Cadillac sources. The new STS will be shown in the "flesh" at April's New York auto show and will go on sale in the third quarter of this year.
The STS is intended to provide an attainable halo around a brand that has "stopped the slide and gained momentum," said Cadillac General Manager Mark LaNeve, but there's plenty of work to do before Caddy can truly reclaim its long-held position as the "standard of the world." Propelled by a December surge in SUV sales, the automaker recorded volume of 216,090 last year, its best performance since 1990, LaNeve declared during the Automotive News World Congress.
How much more growth is possible? Not as much as some might expect. At its peak, two decades ago, Caddy seemed hell-bent to push sales as far as they could go. That move backfired, causing quality problems and diluting the brand image - and eventually led to a collapse in demand, with Caddy sales slipping behind import rivals like Mercedes-Benz, BMW and Lexus. The goal, according to LaNeve, is to rebuild that sense of exclusivity, even if that means holding sales down to no more than around 240,000 units a year in the U.S.
After a series of setbacks and delays, Cadillac is finally making a serious move on overseas markets. It has a new dealer network set to grow across Europe. And there are serious opportunities in China, which LaNeve noted, is the third largest market for BMW's big 7-Series.
China could prove an especially good market for the ultra-luxury car now under development. It's based on the Cadillac Sixteen concept vehicle that proved the big hit of the 2003 North American International Auto Show. A production version likely won't have the big V-16 shown in that prototype, but insiders hint a V-12 is likely. While there's no formally approved program, LaNeve is confident a super-lux Caddy will reach market "in some reasonable timeframe after 2007."
At the other end of the spectrum, Caddy has effectively ruled out a so-called entry-lux model below the CTS. But there could be other products coming. There's an updated version of the DeVille due next year, for one thing. And Cadillac is looking at the hybrid market, perhaps with a gasoline-electric version of the SRX. As the declared technology leader among the many GM divisions, it would make sense to introduce hybrids and other advanced powertrain systems at Cadillac, according to LaNeve.
Caddy's general manager acknowledged that the division hasn't been without its setbacks lately. The launch of the SRX got off to a slow start, he said. Initial emphasis was placed on fully loaded V-8 models priced as high as $60,000. Inventory quickly built up and Caddy had to kick in with incentives. With more V-6 versions priced around $40,000 rolling into showrooms, sales have been picking up sharply. -Paul A. Eisenstein
01-15-04, 03:28 PM
#15
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I hate to say it but the styling has made it an appliance I wouldn't mind owning. It will be interesting to see if the V-Series Seville styling makes it look better too.
OTOH, Pricing vehicles so high just to offer 5-10K rebates on them (for a 35-40K vehicle) is just plain stupid. Seems like using a rational price point to start with would work much more effectively. Hell if you *have* to leave a 1K cushion in the pricing in case of "good" times but 5K or more?!?!
Last edited by Mr Johnson; 01-15-04 at 03:30 PM.