New Cadillac chief not planning to slice prices or sweeten incentives

Article by Christian Andrei, on September 17, 2014

Cadillac does not have any plan to trim its sticker prices or offer sweeter incentives to sell more vehicles in the United States, brand chief Johan de Nysschen told Automotive News in an interview. De Nysschen said that Cadillac should be willing to leave behind its traditional customer base as it tries to woo higher-end consumers it is currently appealing to by offering a revitalized vehicle lineup.

He remarked that it would take several years before those who have been attracted with German luxury brands to consider Cadillac. The marque has seen its sales in the United States drop 5 percent in the first eight months of 2014, in contrast to an eight-percent surge by the overall US luxury car market during the period.

US sales accounted for around 73 percent of Cadillac global deliveries last year. Dealers have found their lots full of inventories, as the brand logged sluggish sales across its sedan lineup. Bloated inventories have been so far blamed on Cadillac’s strategy of pricing its products vis-à-vis its German rival, saying that higher prices of its models have discouraged buyers.

De Nysschen, however, defended Cadillac’s strategy, calling the ATS and CTS "segment leading" in design, craftsmanship and driving dynamics.

He expressed confidence that traditional customers unwilling to cough up enough money to pay for its offerings will soon be supplanted by import buyers as the brand builds its portfolio and improves its appeal through better customer experience. De Nysschen remarked that Cadillac has decided that it is better to build off a solid base in terms of product credibility while charging a fair price. [source: automotive news - sub. required]

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