Cadillac’s Problem of the Cars It Can’t Sell
#196
Lexus Fanatic
My point was, though, that 45 minutes of driving, in this area, often doesn't get one very far. Also, you and I might just have a different idea, personally, of what constitutes a reasonable distance or time. (but, hey, I respect your opinion.......that's why we have this forum)
You have to understand the financial realities here...what would you have a Lexus dealer down the road from another Lexus dealer? Bottom line is anywhere in the area you are, there is a Lexus dealer within 20 minutes of you. If you're out in Howard County or near Baltimore, even Frederick you have Owings Mills and Towson. Up and down the 270 Corridor, Rockville. Up and down 29/95? Silver Spring. Downtown DC? Northern VA? Alexandria. Out 66....Pohanka. PG County, Bowie, Annapolis area, Severna Park? Annapolis. How much more covered do you want them to be? Understanding that its not a high volume brand. When shopping, I'd travel to any of these dealers to save $1,000. To get my buddy's Miata we went to Frederick because it saved him $1,100. Took 45 minutes by the way. For service? I'm going to use a more convenient dealer.
Now when you get more rural, yeah there are less luxury car dealers. We have members here that are 2,3, 4 hours from a dealer. My insurance agent lives in Salisbury on the Eastern Shore, he has a Lexus and a Range Rover. He services them in Annapolis but is about 1.5 hours. Guess where he bought his latest Lexus? Rockville...because they had a great deal. 3 hour drive but it is what it is.
IMHO Lexus dealers are more convenient in our area than Ford dealers...Cadillac dealers are a little less convenient, but not by a whole lot. Have the same sectors of the area covered. If you're up 270, you have Fitzgerald in Frederick, down 270 Jim Coleman in Bethesda, DC or NoVa, Lindsay in Alexandria. Out 66, Moore. South of town, Waldorf. PG County out Annapolis...Fitzgerald in Annapolis. Again...within 25 minutes of pretty much everybody.
Last edited by SW17LS; 09-26-16 at 03:14 PM.
#197
Lexus Fanatic
iTrader: (20)
not sure if you read it all?
dealers selling 50 vehicles or less have no business being a dealer for that brand.
not a bad idea, but i doubt ford/lincoln will want them either.
The dealerships being offered these pay outs all sold fewer than 50 vehicles throughout 2015, meaning that while they represent 43 per cent of all U.S. Cadillac dealerships
If they DO decide to downsize the number, though, maybe the best thing for some of them would be to convert to Lincoln. Lincoln's current dealer system, IMO, is a joke.....selling out of only selected Ford/Lincoln shops. Lincoln could use some stand-alone dealerships.
Last edited by bitkahuna; 09-27-16 at 06:58 AM.
#198
Lexus Fanatic
And the crazy thing is dealers selling 50 or less vehicles make up 40% of their dealers!! Remember this doesn't include dealers that sell 51!
#199
Lexus Fanatic
Hyundai might be looking for some, possibly, to move their new Genesis Division into. We've going to have to assume that they don't plan to operate out of the existing Hyundai shops forever. Ultimately, of course, except for the Tesla company-owned shops, most dealerships are privately-owned franchises, and it will probably end up being whichever automaker (besides Cadillac, of course) the owners of each business decide to go with.
#200
Lexus Fanatic
Originally Posted by mmarshall
Hyundai might be looking for some, possibly, to move their new Genesis Division into. We've going to have to assume that they don't plan to operate out of the existing Hyundai shops forever. Ultimately, of course, except for the Tesla company-owned shops, most dealerships are privately-owned franchises, and it will probably end up being whichever automaker (besides Cadillac, of course) the owners of each business decide to go with.
These dealerships will simply stop selling Cadillacs and continue selling other GM vehicles as they already do, and as the bulk of their business already is.
#201
Lexus Fanatic
You don't get it. These dealerships are in rural locations, and they are part of existing dealers selling other GM models. Why would Hyundai want to sell Genesis vehicles in rural locations that can't keep the doors open selling Cadillacs? That doesn't make any sense.
These dealerships will simply stop selling Cadillacs and continue selling other GM vehicles as they already do, and as the bulk of their business already is.
These dealerships will simply stop selling Cadillacs and continue selling other GM vehicles as they already do, and as the bulk of their business already is.
You don't get it.
#202
Lexus Fanatic
Originally Posted by mmarshall
That's assuming they DO sell other GM brands, besides just Cadillac. Most of the local ones here don't, though you have a point that rural locations may have different set-ups.I get what you are saying............but I just don't think it is necessarily the only option. We'll see, though.
Think about what this article is saying logically for a little bit. Let's say they make $5000 per car which is probably full boat. If they sell 49 cars that's $245,000 a year in revenue. Sorry, but you can't operate a car dealership on that, no matter where it is.
Even if they do service, if they're only selling 49 or fewer Cadillacs, how much service can they do?
So logically these dealers cannot only sell Cadillac.
#203
I purchased my son's 2009 Vibe AWD from a store called Vermillion in Tilton IL.
Back then they sold Chevy, GMC, Buick, Caddy, Pontiac.
These were the nicest folks to deal with imaginable.
They were very honest with me and mentioned that in their market, folks just don't have a bunch of coin.
Pontiac went bye bye and they no longer sell Caddy.
Extending that to what GM is trying to do, I imagine that there really are a lot of Caddy stores in places where the market does not justify having the brand there.
Back then they sold Chevy, GMC, Buick, Caddy, Pontiac.
These were the nicest folks to deal with imaginable.
They were very honest with me and mentioned that in their market, folks just don't have a bunch of coin.
Pontiac went bye bye and they no longer sell Caddy.
Extending that to what GM is trying to do, I imagine that there really are a lot of Caddy stores in places where the market does not justify having the brand there.
#204
Lexus Fanatic
Thread Starter
The bottom line for Caddillac is their products are still inferior to MB and BMW and even Lexus.
The styling language on their new cars no longer stands out as it once did and their interior design and CUE are lacking. Add to that lack of Brand cache and optimistic pricing and you have poor sales.
Also alll the new model name changes didnt help - ATS, XTS, CT6, XT5????? Just pick something and stay with that pattern.
They need to put the V8 engine from Camaro SS into the ATS V, not the crappy TT V6.
Nobody who is considering M3 will buy a Caddy TT V6, now if it had a sweet sounding V8.....
The styling language on their new cars no longer stands out as it once did and their interior design and CUE are lacking. Add to that lack of Brand cache and optimistic pricing and you have poor sales.
Also alll the new model name changes didnt help - ATS, XTS, CT6, XT5????? Just pick something and stay with that pattern.
They need to put the V8 engine from Camaro SS into the ATS V, not the crappy TT V6.
Nobody who is considering M3 will buy a Caddy TT V6, now if it had a sweet sounding V8.....
#205
Lexus Fanatic
Thread Starter
Limiting the number of luxury brand dealerships also helps with the image that the brand wants to project. Luxury brands are supposed to be aspirational vehicles -- they are supposed to be goals that you strive for and work hard for. Lexus would not seem to be a very aspirational brand if every Lexus dealership shared its showroom with Toyota. A Lexus LS or LC would not seem as special if it shared showroom space with a Yaris.
Now, for Cadillac, I understand why one would want the brand under its own roof, but Cadillac has an average transaction rate that is 2nd highest coming in a $51,000 so I am not sure what that will do. I could see the brand being more accepted if it were on its own, but I am not sure that is going to happen.
#206
Lexus Fanatic
I think your comments are wrong. Cadillac makes some fine cars, but people seem unwilling to pay a premium for a Cadillac but instead they are willing to pay for a less performing car and that is because of the badge.
Take the CTS-V and and GS-F, both are about the same MSRP the Cadillac is offering up Ferrari levels of power, what is the GS-F offering?. And for what its worth,
Take the CTS-V and and GS-F, both are about the same MSRP the Cadillac is offering up Ferrari levels of power, what is the GS-F offering?. And for what its worth,
YTD the CTS is outselling the Lexus GS
It will be interesting to see, though, how much the RWD/AWD CT6 impacts future CTS sales.
and Cadillac sells more Escalade than Lexus sells GX/LX combined.
#207
Lexus Fanatic
iTrader: (20)
Cadillac makes some fine cars, but people seem unwilling to pay a premium for a Cadillac but instead they are willing to pay for a less performing car and that is because of the badge. Take the CTS-V and and GS-F, both are about the same MSRP the Cadillac is offering up Ferrari levels of power, what is the GS-F offering?. And for what its worth, YTD the CTS is outselling the Lexus GS and Cadillac sells more Escalade than Lexus sells GX/LX combined.
cadillac just has to take the long view - keep improving product, keep improving dealers, keep marketing the brand. the xt5 is doing fine. the escalade obviously is a cash cow. the ct6 is an excellent vehicle the market's still trying to figure out (size/position/value) and it will only get better. ats/cts need upgrades/refinement of interiors but are certainly not 'bad'. when i see them about i always think they look really sharp.
back to the dealer problem - they simply have to weed out the dealers selling hardly anything - it's a waste of time/effort and distraction.
#208
Lexus Fanatic
Thread Starter
As I see it, though, the Escape sells mostly on two factors.....first, its sheer bling-level inside and out, which few other SUVs can match, and second, the excellent towing capacity from its huge truck-based frame. One can not only ride around in that ostentatious interior, but carry a big family and tow a heavy boat while doing so. But I'll admit that the GX and LX both offer better reliability.
Last edited by Toys4RJill; 09-27-16 at 07:11 AM.
#209
Lexus Fanatic
iTrader: (20)
#210
Lexus Fanatic
Yes, some of what you say is true. But part (not all) of the prestige and cache you speak of comes directly from its high level of bling. Probably no other SUV on the road, except maybe for the Buick Enclave, has an interior like that....though the Yukon Denali, the Escalade's sister, is also impressive inside.