mmarshall

That was partly because of the yen's exchange-rate in the world currency market (and what they could realistically charge), not necessarily where the factory felt the best pricing might be, or where they would have wanted it.

Toys4RJill

Not really. As a brand, Lexus was not always perceived to be on the same level as MB, BMW and Audi.

Some of the models they made could command a high price, but not all. The LS460h struggles to justify the insane MSRP while the LX has no problem being priced at the MSRP it has.

Toys4RJill

Lexus as brand and this point should be able to command more money for their cars like the next gen LS and LC. We will find out if they can, but I think they will be able to do it.

Toys4RJill

Cadillac has no image issues with charging the high price of the Escalade. The success of the CT6 will rely on whether or not those high end buyer (who buy the Escalade) will buy the CT6 over a comparable Mercedes, BMW or Audi.

I believe the CT6 is good enough to achieve this. But hearing the words China built hybrid CT6 does not sound like it's something a MB or BMW shopper wants to buy.

SW17LS

This isn't the reason. Toyota made a conscious choice to price Lexus vehicles to the point where they were extremely compelling values, and then slowly (even not so slowly) raise those prices up, but even today they still present a compelling value.

TangoRed

Agreed. The yen advantage certainly did pad Toyota's pockets, but Lexus largely held the line on the LS400's prices when you consider the yen's appreciation in the 90's.

mmarshall

I never said it was the whole reason....there were others as well. But it is a fact that currency exchanges can go a long way towards auto-pricing. Because of that, in some cases, you can buy a new Corolla today for almost the same price in American dollars today as you could 20 years ago. I know...my late mother had a new 96 Corolla wagon.

TangoRed

It's funny because the Ford CFO mentioned this a few years ago: http://www.bloomberg.com/news/articl...-from-weak-yen

While domestic auto manufacturers were largely churning out pure crap during the 80's/early 90's, there was some truth that the weak yen helped out the Japanese manufacturers to a large degree.

mmarshall

I remember those days well. Domestic products were indeed mostly crap. With the Japanese, the yen played a role with the companies themselves, but their American-branch dealerships and franchises profited even more because the import-embargos of the period artificially depleted the source of Japanese vehicles coming into the country and caused a shortage. That shortage led to big dealer mark-ups over list....and sometimes long waits for a vehicle. Basically.........(and nowhere was this worse than at Toyota and Honda dealerships)........you walked in, said what car you wanted, agreed to pay over list for it (the Accord, especially was extremely popular back than), and probably settled for a car that wasn't quite the color/trim-level/options you wanted. Or if, you were very lucky, they had it on the lot or at a nearly dealership....and you paid even more over list for it because they knew that was exactly what you wanted. If no cars were available (which was often the case), you paid a big deposit, went n a waiting list, and just waited for the boat and transporter to arrive. If these conditions weren't acceptable to you....tough luck. It was basically sign........or don't let the door hit you in the a** on your way out.

My first Japanese-made new car was a 1984 Mazda GLC sitting right in the showroom (after years of frustrating, unreliable Detroit crap), and, even using my best negotiating skills and finding a halfway-honest sales guy (who knew I was no pushover, either)...I still ended up paying $8000 for a new $7860 car......$140 over list. Some others, of course, paid much more, especially for an Accord or Camry.

I don't want to ge to far off-topic, though....we were on the Cadillac CT6.

mmarshall

Here's some actual review/test-drive experience from behind the wheel. In the first part of the review, he has to ride in the back seat with company-reps in front, but then he gets the car for himself. He doesn't cover the area of ride comfort very much but describes everything else pretty well.

Toys4RJill

Although this guy's reviews are not very good and too long. It's nice he got the review out by now.

If this new Cadillac can get the reception the Escalade can get, this will be a monumental home run.

bitkahuna

iTrader: (20)

wow... awesome.

pbm317

So far, even the best reviewed Cadillacs have failed to get the "reception the Escalade can get" The Escalade is far and away a sales anomaly for the brand, hence the strength in the Escalade name has left it off the Alphanumeric nomenclature change. Of course if the CT6 could achieve that it would be a homerun.

CT6 is no doubt a solid car, I was able to drive several variants myself, but is it answering a question no one is asking, or perhaps just a slim niche?

The Germans have strong full size cars in the E,5,A6 and also strong executive level cars in the S,7,A8. They each offer a style-focused alternative as their "tweener" CLS, 6 gran coupe, A7.

Not sure what kind of volume Cadillac is hoping for, but with their other models, they've shot production through the roof initially, and when initial demand stumbled or was a quick peak, they were forced to use excessive incentives.

Off-topic, but a similar product focusing on a tweener type segment is the Nissan Titan XD. Trying to live somewhere between half-ton and heavy duty life. No doubt an attractive product on some specifications, but potentially a very small subset of actual market demand.

bitkahuna

iTrader: (20)

you've driven several variants of the CT6 already?

pbm317

I have. I work within the auto industry.