General Motor Facing Twin Roadblocks to Rebuild its Cadillac Brand

Published Date : Feb 11, 2015

The strategy of General Motor’s for rebuilding the brand of Cadillac has hit two twin blocks which the car company cannot persuade the sedan buyers from America to switch from foreign competitors which include Mercedes and BMW. Another issue they are facing is that they cannot produce enough of its SUVs called Escalade to satisfy their domestic consumers demand.

However, these SUV’s retailing is for over 100 thousand dollars which are rolling out of production every day of a Texas based factory which has been operating even on weekend for overtime. This overtime has been going on for months, but still Cadillac is not able to keep pace for more than a few weeks worth of these big SUVs in stock. On the other hand, the dealers are giving discounts worth thousands of dollars on ATS model sedans. The dealers are intended to compete with the 3 series of BMW and also on the CTS sedan which is supposed to rival E-Class model of Mercedes.

At the Seattle suburb of Washington, Brotherton Cadillac Buick GMC’s owner is offering the model 2014 ATS sedans for around 12 thousand dollars off, which is a sticker price that begins with around 33,215 dollars. Near St. Louis, the Bommarito Cadillac is cutting even more; they are offering a 17,500 off for the price of 2014 CTS sedan that has a starting price of 45,345 dollars.

These fire sales show a setback of the Cadillac’s strategy which is to challenge to Daimler Ag’s Mercedes and BMW brand head on in the market for luxury sedan. However, the American Cadillac owner is willing to happily consider a Mercedes or BMW, which are drivers of the famous cars from Germany, but are not willing to put on their shopping list a Cadillac.