Caddy Exec: Dealers Part of Brand's Problem

[PREMiERdrum]

Filed under "No Shit."

 

http://carbuying.jalopnik.com/cadillac-executive-says-dealerships-are-part-of-the-pro-1671792875/+pgeorge

 

Poor Cadillac can't catch a break, sales are down 5.9% this year while other luxury car companies are having record numbers. The problem, according to General Motors, is not the lack of competitive product, because Caddy is making some damn good cars. The problem is the dealerships.

 

The first problem is the number of stores. There are currently 925 Caddillac dealerships nationwide. That is about three times as many dealers as BMW. This makes the brand less exclusive and less profitable in each location.

Cadillac sold 182,540 vehicles in the U.S. That works out to an average of 197 per store. Meanwhile, BMW's 339 U.S. dealers sold 309,280 vehicles last year, or about 912 per dealership — or put another way,

over four times as many

.

 

 

If only another American luxury brand, say, named after a dead president, would have thought that Buying and Owning Experience were just as important, if not more important, than just product.

 

Are these guys serious?

 

You HAD your chance to rightsize the Cadillac dealer network through BK. You didn't.

 

You WATCHED Lincoln go balls-deep in fixing their dealership model and size. You scoffed.

 

You were CERTAIN that some fancy, German-like products were all you needed to find success. You were wrong.

 

Who should be sprinkling the Holy Water now?

[LincolnV]

Maybe they should move all the dealers to New York?.....

[Dave-S]

I agree on the Dealership issue. They need fewer dealers and a better customer experience. If they can pull that off then it will help their sales problem.

 

But because of their prices being equal to their German competitors (and I suspect the dealer issue), they have lost a lot of their old customers and are having a difficult time attracting some of their desired new customers.

 

I know if I were in the market for a luxury car (except for an SUV) I would give BMW, Mercedes, or Audi the nod first if for no other reason than their cars will probably hold their value better than a Cadillac. Lincoln will have the same issue going forward as well with their new cars (whenever they hit the market) if they are priced the same as the German Luxury brands.

[LincolnV]

I agree on the Dealership issue. They need fewer dealers and a better customer experience. If they can pull that off then it will help their sales problem.

 

But because of their prices being equal to their German competitors (and I suspect the dealer issue), they have lost a lot of their old customers and are having a difficult time attracting some of their desired new customers.

 

I know if I were in the market for a luxury car (except for an SUV) I would give BMW, Mercedes, or Audi the nod first if for no other reason than their cars will probably hold their value better than a Cadillac. Lincoln will have the same issue going forward as well with their new cars (whenever they hit the market) if they are priced the same as the German Luxury brands.

 

The closest Cadillac dealer near me sells Chevy, Buick and GMC vehicles as well. These brands all share the same showroom and lot. There isn't anything to show that the Cadillacs are special vehicles worthy of the prices being charged. One could drive down the road to the closest BMW dealer and see nothing but those cars in their own showroom. The same with the closest Audi or Mercedes dealer.

[RichardJensen]

I am so irritated by the Motley Fool's failure to provide a link to the source material for their article.

 

And guess what? de Nysschen is stomping on stakeholders again. Does *anyone* think that this is going to end well? He's already decamped for New York, talking trash about Cadillac engineers and designers that have been left behind in Detroit. He's talked trash about the company that employs him, and he's now talking trash about his dealers.

 

Apparently he thinks that the key to success in business is by alienating everyone who makes success possible.

[Dave-S]

When it comes to dealers we do have some dedicated Caddy dealers but we also have ones that sell Chevys right alongside the Caddys. And for our metropolitan area we have way too many overall dealerships that sell Caddys.

Edited December 18, 2014 by Dave-S

[twintornados]

....Apparently he thinks that the key to success in business is by alienating everyone who makes success possible.

 

Also known as, "The Jacques Nasser approach"...

[bolt in blue]

Not a whole lot of Cadillac dealers around me. My sister was in the market for a luxury car about two years ago. I went with her to the Cadillac dealer - a good 15 mile minimum trek. The guy they assigned us to was probably in his 70s. Office walls covered with sales awards and repeat buyer awards. It was like pulling teeth to get a test drive out of him - it was clear that he didn't think either of us were remotely serious, despite us driving up in my then less than six month old Escape.

 

Everywhere else we went together (BMW, Audi, Mercedes) treated us like potential customers. We only made one visit to Cadillac and made several trips to the others. Cadillac had a better product for her than Mercedes or Audi but didn't get a second look because of their dealer who seemed only interested in "old money". She bought the BMW.

[akirby]

And the negatards scoffed at Lincoln for trying to fix their dealership experience instead of building BMW killers.

[fuzzymoomoo]

And the negatards scoffed at Lincoln for trying to fix their dealership experience instead of building BMW killers.

It's GM, their way is the only way.

[jpd80]

I am so irritated by the Motley Fool's failure to provide a link to the source material for their article.

 

And guess what? de Nysschen is stomping on stakeholders again. Does *anyone* think that this is going to end well? He's already decamped for New York, talking trash about Cadillac engineers and designers that have been left behind in Detroit. He's talked trash about the company that employs him, and he's now talking trash about his dealers.

 

Apparently he thinks that the key to success in business is by alienating everyone who makes success possible.

All Lincoln has to do is watch Cadillac and do the exact opposite.

 

I have never seen a company so poorly managed, you couldn't have given ATS and CTS a worse introduction if you tried.

Let's introduce our new expensive ATS alongside a heavily discounted CTS for 12 months and see what happens...

After we do that, let's bring in a new CTS that's way more expensive and see what happens to brand building when

our existing car customers die of sticker shock and go lease competitor brands nstead.

 

When it comes to brand building, Cadillac has done the exact opposite. The disrespect and uter contempt

shown to return buyers is right there for all to see and reflected in the poor sales of their "BMW Fighters".

Nearly 30,000 unslod ATS and CTS tells me that Cadillac is completely clueless..GM will need a huge

fire sale to clear their parking lot which will undermine any future premium pricing.

Edited December 19, 2014 by jpd80

[akirby]

Don't forget building a super expensive uber hybrid instead of a mainstream hybrid ATS.

 

The lack of understanding of marketing and profitability is staggering.

[twintornados]

I own a 2011 Lincoln MKX and even though my dealership is a Ford/ Lincoln/Mazda store, when I come in for service, they treat me exceedingly well. Always offer me a loaner (and issues me a Lincoln too) and washes the car when they are finished. I could not ask for a better experience.

[atomcat68]

I am so irritated by the Motley Fool's failure to provide a link to the source material for their article.

 

And guess what? de Nysschen is stomping on stakeholders again. Does *anyone* think that this is going to end well? He's already decamped for New York, talking trash about Cadillac engineers and designers that have been left behind in Detroit. He's talked trash about the company that employs him, and he's now talking trash about his dealers.

 

Apparently he thinks that the key to success in business is by alienating everyone who makes success possible.

The thing that irritates me the most about the New York move is that Cadillac is named after the explorer who discovered Detroit! Now Caddy is ashamed of its heritage?!! They should be proud of their heritage and oddly enough the company that tries to emphasize a Detroit connection is the Italian owned Chrysler!

[jpd80]

Don't forget building a super expensive uber hybrid instead of a mainstream hybrid ATS.

 

The lack of understanding of marketing and profitability is staggering.

What's so sad is that Cadillac threw away its Sigma CTS sales base to go chase BMW.

The whole company is way out of kilter with the reality of the market, it's like living in denial..

[grbeck]

When it comes to brand building, Cadillac has done the exact opposite. The disrespect and uter contempt

shown to return buyers is right there for all to see and reflected in the poor sales of their "BMW Fighters".

Nearly 30,000 unslod ATS and CTS tells me that Cadillac is completely clueless..GM will need a huge

fire sale to clear their parking lot which will undermine any future premium pricing.

Maybe GM can dispose of those Cadillacs the same way it disposed of the copper-cooled Chevrolets of the early 1920s. Take them on a barge and dump them in one of the Great Lakes...

[grbeck]

What's so sad is that Cadillac threw away its Sigma CTS sales base to go chase BMW.

The whole company is way out of kilter with the reality of the market, it's like living in denial..

It all comes down to the fact that Cadillac will never be BWM, and people who want BMWs will always buy the real thing, even if the real thing isn't quite what it used to be.

 

The other sad part is that a revamped SRX and a Cadillac crossover slotted above it would probably be selling as fast as GM could produce them.

Edited December 19, 2014 by grbeck

[PREMiERdrum]

It all comes down to the fact that Cadillac will never be BWM, and people who want BMWs will always buy the real thing, even if the real thing isn't quite what it used to be.

 

The other sad part is that a revamped SRX and a Cadillac crossover slotted above it would probably be selling as fast as GM could produce them.

 

And the new SRX is, what, 18 months away? With the 2 new crossovers spread out between 2017 and 2019 model years?

 

I'm sure the competition in arguably the hottest segment right now won't introduce anything innovative between now and then, right?

 

Escalade is the only thing trying to piss out the dumpster fire that is Cadillac right now. I don't anticipate 2015 to be any better for the Wreath and Crest brand.

 

Oh, and did you guys here that the new, sure bet, "going to save the brand," "Flagship" CT6 "will hew to the art and science theme of Cadillac’s existing lineup ... you won’t see a real shift in direction.”

 

http://www.autonews.com/article/20141216/OEM04/141219917/cadillac-styling-wont-take-sharp-turn-with-flagship-ct6

[RichardJensen]

Maybe GM can dispose of those Cadillacs the same way it disposed of the copper-cooled Chevrolets of the early 1920s. Take them on a barge and dump them in one of the Great Lakes...

 

Wow. I had no idea that happened.

[grbeck]

Wow. I had no idea that happened.

Supposedly GM took back the cars that were sent to dealers, along with the stock left at the factory, and loaded them on to a barge and dumped them in Lake Erie. Legend or truth? Today there are only two surviving examples left. GM produced a total of 759 copper-cooled Chevrolets, and managed to either buy back or stop shipment of all existing examples.

Edited December 19, 2014 by grbeck

[PREMiERdrum]

Supposedly GM took back the cars that were sent to dealers, along with the stock left at the factory, and loaded them on to a barge and dumped them in Lake Erie. Legend or truth? Today there are only two surviving examples left. GM produced a total of 759 copper-cooled Chevrolets, and managed to either buy back or stop shipment of all existing examples.

 

This GM incident is regarded as the 2nd biggest mistake on Lake Erie.

 

[RichardJensen]

That guy is going to be on so many "celebrity" shows once he's out of the NFL......................

[PREMiERdrum]

That guy is going to be on so many "celebrity" shows once he's out of the NFL......................

 

Which, if my fellow Brownies fans have any luck (I know, I know), should be ready for air in Fall of 2015.

[RichardJensen]

I can't believe they traded down to get him.

 

But then again, bad organizations are bad organizations because they make bad decisions.

 

And that brings us right back around to GM and their decision to hire de Nysschen and then let him do whatever the heck he wants and say whatever the heck he wants, because apparently they continue to believe that Robert Lutz did more good than harm, despite the fact that he left FoE in a shambles, left Chrysler with no future product in the cupboard, and was a key player in GM's slow descent into bankruptcy.

[630land]

This new 'Savior' will be out the door as fast as the others. Like that one who wanted to stop using 'Chevy' or the Proctor & Gamble guy who tried to 'sell cars like dish soap'.

 

GM has a revolving door.