A recent TV ad extols the wonders of the Cadillac CTS. Suddenly, the image zooms backwards and flips around to become a sparkling GM logo. “The CTS is made by General Motors,” the narrator intones. “Surprised?” I sure was. I mean, I understand the intended subtext: See? We’re not a total basket case. But as my father would say, if you’re so smart how come you’re not rich? Students of this series know that GM has plenty of answers to that question. The only thing neophytes should clock: none of these answers involve the phrase “we fucked up.” That and the fact that GM wants you to believe that their turnaround depends on building more cars like the Cadillac CTS. Uh-oh.
Don’t get me wrong. I like the CTS. It’s not a Bimmer beater or a Merc mauler or a Lexus liquidator. But it’s a fine car in its own right, especially at a discount. (Yes, there is that.) Just as the Chevrolet Silverado offers tremendous value-for-money, especially at a discount. (Yes, there is that). By the same token, the Chevrolet Malibu. And therein the problem: it is a token.
The vast majority of GM products– and there are over 120 of them– are, well… let’s not go there. There’s only so much J.D. Power Initial Quality Survey data a man can drink-in before it all starts to taste like Kool-Aid. So, back to my main point…
What’s with the blending of Cadillac and GM? Does anyone care that GM owns Cadillac? OK, given that taxayers will soon have a $13.4b financial interest in The General’s product portfolio, they might appreciate the heads-up. But GM’s paternal relationship with Caddy cuts both ways. On the upside, the CTS is GM’s automotive poster child. On the downside, the GM – Caddy hook-up rivals Jerry Lee Lewis’ first marriage to his cousin as “one those things with which marketing-minded folk shouldn’t bother the buying public.”
The CTS ad’s muddied message is symbolic and symptomatic of GM’s ongoing, endemic and abject inability to manage the core of its business. Cadillac is a far stronger brand than GM, which now stands for executive greed and incompetence, union intransigence, environmental foot-dragging, failed manufacturing, back-room politics and corporate socialism.
Cadillac is such a strong brand– still– that all it really needs is world-class products. Even if you put the CTS in that category, that leaves nothing much worth talking about, never mind buying.
GM is supposedly addressing this deficiency with the new SRX. The view from here: the SRX will be the CTS of luxury utes. It will offer plus-sized comfort priced higher than smaller, less expensive foreign competitors, for less than the cost of its larger, more expensive foreign competitors. How great is that?
Not as great as a no-compromise f-off sedan with presence, power and panache. That’s the popular conception of a Cadillac, as witnessed by the success of the blinged-out, gas-guzzling Escalade (to each their own in the panache department). In fact, all GM had to do with Caddy was build the world’s best automotive products and charge customers exorbitant amounts of money for the privilege of owning them.
Of course, GM can’t do that now. Now that the American automaker’s mortgaged its future to the suckle on the taxpayer teat, Cadillac is hemmed-in by GM’s need to satisfy its new owners: the democratic party. These days, Caddy’s alphanumeric model names might as well start with the letters PC.
This folks, is GM’s strongest brand. Saturn’s branding is in such a shambles that GM’s own TV commercial shows a customer who thinks he’s in the wrong showroom. Buick is dead. HUMMER and Saab are… never mind, GM’s selling/starving them. GMC? Pontiac? Chevrolet? When it comes to branding, GM ain’t got game.
Never mind a “viable business.” Can an American car company survive without viable brands? Not in this market.
I don’t mean a market suffering from seemingly terminal consumer constipation. I’m talking about an automotive arena filled to the rafters with a wide range of highly-focused automotive brands. From Toyota’s reliability rep to the MINI’s fun factor, from unattainable Ferraris to stack ’em high and sell ’em cheap Hyundais, there’s no niche left behind. Without a single compelling brand, GM is nothing more than taxpayer-funded chum in a shark-infested ocean.
So what’s Cadillac’s killer app? The CTS. And what’s CTS’ killer app? Cadillac. That’s the kind of self-referential logic with which it’s impossible to argue and, it seems, impossible to eliminate. But GM’s fortunes depend on better branding. Until and unless GM masters the art of creating and sustaining a tightly-focused automotive brand or eight, they are simpliy killing time. Even as they are slowly, gradually, inexorably killing the only truly valuable assets they’ve ever owned.
Anyone seen heavily discounted cts-v’s ?
Its sort of interesting that the killer-app for Cadillac is the entry-level model. Aren’t caddy’s supposed to be huge, imposing, impressive, and somewhat unattainable? If anyone can afford one, whats the point?
Also, if Hyundai is sell ’em cheap, I wonder about the fate of the Genesis. As always, it’ll be interesting to see how it plays out. Were I in the market for a big luxobarge, I’d definitely consider the Genesis.
@ZCline:
Caddy’s CTS is their 3 series competitor for a 5 series size. Other than the G8, it appears to be the only truly compelling GM car (and RF seems to think the G8 is sunk due to the Pontiac label affixed to it’s snout. Based on sales, he’s right).
The Genesis example will be quite interesting. The last time a pedestrian brand swung for the fences was Mazda with the Millenia. Great car, but most buyers couldn’t get past the Mazda label and it was a sales dud.
I’m not sure I’d put the Phaeton in this category, as it was, what, triple the price of any other VW for sale at the time? VW wasn’t swinging for the fences… they tried strapping a couple of rockets on a baseball and shot for the moon.
I’m not sure I’d put the Phaeton in this category, as it was, what, triple the price of any other VW for sale at the time? VW wasn’t swinging for the fences… they tried strapping a couple of rockets on a baseball and shot for the moon.
Its interesting, because everything I’ve read seems to indicate this was actually a very very good car, just overpriced since it was a “VW”. So what’s the solution? You can’t just build a kick-ass car anymore (everyone seems to agree the G8 is very good as well). I realize some of this is the reputation (GM- makes unreliable crap, VW- car of the people/cheap? Even if they haven’t really been cheap in a while) so what must an auto manufacturer do? Build something truly awesome for a cut throat price and hope that enough people will take the plunge and realize its great and hope that they tell enough people so that your rep will change? It seems very long-term, and a lot of evidence seems to indicate that the domestic auto makers aren’t long-term thinkers.
Wow, you can buy a sub-20,000 mile, 2008 CTS for $25k at ebay.
I would never buy a new GM but a one year-old CTS looks like a great deal even if GM liquidates.
The VW Phaeton pricing issue relates back to the premise of the story about branding. VW is a German value brand. Offering a compromise of traits found in other German vehicles for a reduced cost. The Phaeton offered no compromise on price or features and thereby broke the branding promise.
The same is true with GM.
Anchorage, Alaska has 2 large “everything under one roof” GM dealers for a city with a population of about 250K. The funny thing is, I don’t see any new GM cars on the road–not even the new Malibu.
Anchorage, Alaska has 2 large “everything under one roof” GM dealers for a city with a population of about 250K. The funny thing is, I don’t see any new GM cars on the road–not even the new Malibu.
I saw a new Malibu the other day (this things been out what, a year? ). I liked it! The rear was kind of neat, with the round tail lights, and this must have been the loaded model as the interior actually looked really good, I liked the old Corvette style dual cowells, and admitidly I was looking through the window and not sitting in it, but it didn’t seem that bad at all. Certainly more stylish than a Camry and a lot less button-happy than the new Accord.
Sadly, I’m not in the target market. I don’t even have a car now, and I typically buy sports cars. But if I did have some kids, it would at least be on the list …
GM, consumers know that you own Cadillac; they are not the naive idiots that you take them for. Surprised?
Can anyone answer this for me?
Why is there a little silver “GM” badge on the front passenger doors of every single model across the range?
Does anyone else think this looks tacky?
It’s one of a laundry list of reasons why I don’t give GM products a second look…except aforementioned CTS-V.
You’re right. It’s a case of brand gangrene. They need to cut off the bad parts before everything else rots away. You’ve got me thinking. What if they get rid of all brands except Cadillac, Chevrolet, and Opel. Replace the GM corporate name with Cadillac Motor Company and have Chevrolet as a value brand of Cadillac.
It would be the Chevrolet Division of Cadillac Motors. Similar to BMW with MINI as a sub-brand. My preference is to have a value brand as a sub brand of a premium name rather than the other way around. That way a Malibu becomes a value version of a CTS rather than a CTS being seen as a fluffed up Malibu. Even if it isn’t true, that’s the image you want to project.
Finally, Opel gets the Saturn dealers and free reign to build what they want for the US.
Killing the GM name along with the zombie brands would be a wonderful symbolic gesture and if it were to happen, it would be an indication that the old thinking was gone.
dude.
The Cadillac Automobile Company was formed from the remnants of the Henry Ford Company on August 22, 1902.
Maybe, just maybe, the Cadillac, LLC. will be formed out of the remnants of the General Motors Corporation 107 years later.
Ideas that are old, are now new again.
One can only hope.
If I possessed an analytical mind-set I would seek out a correlation with the near-demise (future total demise?) of GMC as compared to the decline then disappearance of fins gracing the exterior of Cadillacs.
I’ve driven a lot of Cadillac road barges over the years, and road barge describes it exactly. That said, my neighbor bought a 08 CTS — direct injection V6, all wheel drive. I’ve driven said CTS half a dozen times. Credit where credit is due: the car is fantastic. If GM had been building cars like the CTS for the past 30 years, they wouldn’t be bankrupt now. Unfortunately, the CTS was born out of pants shitting fear. I could just hear the CTS design team, “Oh, crap! It’s for real this time! We gotta do it right now!” Alas, it’s too little, and too late to save GM. This phenomenon is not unique to GM, however. A study of bankrupt car companies will show that they almost all produced some of their best products just before the sheriff padlocked the doors. Think of how a light bulb flares up just before it goes dark.
I saw that ad with my daughter, who said: “Dad, doesn’t that kind of bring down the Cadillac name?” It didn’t help that the closing of the ad was an announcement that Cadillac is having its first ever Red Tag Sale!
If the XLR had been an enormous six passenger 4-door, instead of an overpriced SL competitor GM would be just as dead, but they would have had to burn through a much larger pile of cash to get there.
Elvis owned a pink 1961 Caddy convertible, same year as shown. OD’d and now Cadillac will OD as a result of ever larger bling cars.
I really feel for GM. They BY FAR have the best products of the Big Three.
They have the best trucks
Best SUVs
Best Crossovers
and a lot of fantastic cars (Malibu is by far the best mid-sized sedan, the CTS is sex, the Cobalt gets 37 MPG, the G8 is the best car they make, The Corvette, the Sky…and on, and on, and on).
GM is the only Domestic manufacturer that proves that America can build competent vehicles.
They just need to change their perception and all will be fine (oh…and ditch the bloodsucking UAW)
P71_CrownVic :
December 26th, 2008 at 9:54 pm
Malibu is by far the best mid-sized sedan, the CTS is sex, the Cobalt gets 37 MPG, the G8 is the best car they make, The Corvette, the Sky…and on, and on, and on).
And the Impala is the best large sedan named after an African cloven-hoofed animal, and Aveo is the finest small car with a name that ends in “-veo.”
P71_CrownVic :
I think you missed the entire point of the article.
An excellent vehicle does not a brand make. And that’s before we start talking about sales numbers, relative quality, profit per vehicle (or lack thereof), and on, and on, and on.
No foot, no horse. No brand, no automaker. Ipso facto.
GM’s also the only domestic to dominate the worst of the worst used car list.
Really I think the mantle of “most competent domestic” has to go to Ford by a long mile. It may not have the standouts like the CTS and Malibu, but it doesn’t have too many dogs either.
Robert:
I respectfully disagree.
I think that the vast majority of GM vehicles are excellent…people just aren’t willing to give them a chance.
And that is probably brought on by GM themselves…but times have changed, vehicles have changed, and GM makes great products.
mcs:
You mention the BMW – MINI relationship, but BMW is actually the mainstream brand in the BMW parent company’s lineup. The luxury brand is Rolls Royce.
Cadillacs, at a time, were better than or equal to Rolls Royce automobiles. And commanded prices that were the same or higher.
To see how desperate GM has gotten, image a BMW commercial saying “The Phaeton is made by Bavarian Motorworks. Surprised?”
Mercedes and BMW are not really luxury brands. In Europe they are somewhat mainstream brands. Cloth, four-bangers and steel rims, but rear wheel drive, excellent safety, and, for the most part, excellent build quality. Unfortunately in the US well made, safe cars with rear wheel drive have become considered a luxury.
If the Ford and Chevrolet lineups were consistently improved and refined since the 1960s, instead of cost cut and schizophrenically switched to FWD, they could be on par with the European BMW and Mercedes lineups.
It’s going to be a long time, if ever, before Ford and Chevrolet can regain that status, but they will definitely never get there unless they drop the Mercury and Volvo, or, in GM’s case, Pontiac, GMC, Buick, Saab, Hummer and Saturn distractions.
I think the “[t]he Malibu is made by General Motors. Surprised?” commercial is particularly insulting. Maybe 70% of consumers know that Cadillacs are GMs, but probably 90% of consumers know that Chevys are. Talking to customers like they are idiots will get GM nowhere. They might as well be saying “2 + 2 = 4. Surprised?”
However, if there are any consumers that are unaware that the Malibu is made by GM, it is because the fact that GM also makes the almost identical Aura and G6 confuses the hell out of them.
As Americans, we have become very myopic with our choices as consumers. We really target what we want very specifically. Look at how the auto market has been delineated over the last decade: Wagons, SUV’s, Sport Utes, Crossovers, Sports Cars, Minivans, Sport Wagons, Subaru’s…etc.
We expect to get exactly what we are looking for when buying computers, cell phone devices, houses, cars and so on. What, specifically, is a Cadillac offering to the consumer? I feel this is where they have fallen short. They offer up a product in the ‘grey’ zone…it is neither black nor white. This is precisely why my buddy sold his CTS and bought a Lexus. The CTS really has no point, no compass, no direction. Same goes for GM…
no_slushbox :
I agree 100%
I’ve noticed an ad even worse than the “surprised” ads. Has anyone seen the latest Ford ads. They’re running one in the Boston area about their end of year sale and they’re using the dreaded “Final Days” phrase in the ad. They even have it stamped on a graphic. I nearly fell over. Where do they get these marketers? Don’t use the phrase “Final Days” in your ads when your viability is in question even if it only refers to the final days of a sale.
There are also Nissan and Honda ads that seem to be alluding to the Detroit brands problems. The Nissan ad uses the phrase You don’t just need a car, you need a car company. I can’t remember the Honda ad – I think it says something like “and we’ll keep building cars you want.”
P71_CrownVic : I think that the vast majority of GM vehicles are excellent…people just aren’t willing to give them a chance.
The vast majority of their 120 vehicles are excellent? I’d counter that the majority are either average or below average: and none of them have the years of quality branding or the marketing dollars to get them up to par (public perception wise) with their (mostly foreign) competition. The obvious exceptions are the Corvette, trucks, and the CTS/Malibu.
And I’d also counter that most GMs still have dull , un-American styling and cheap interiors with few key differentiators (like a gearbox smoother than a Honda, or a door panel nicer than a Camry LE, which isn’t exactly asking for much) from their competitors. You know, the things that people appreciate when visiting the dealer.
Proof positive: the “Surprised?” ad for Buick/Pontiac/GMC. Sure the G8 is great, but not for the reason given on that ad, heaven forbid they advertise the well-sprung RWD poise, efficient, American muscle thing and stick with it. And the quality/efficiency of the Buick CUV and GMC trucks aren’t gonna swing market share back to GM: conquest buyers are a hard sell because of years of loyal service from their non-GM vehicles.
And GM doesn’t have years to get these people back. So, they quickly promote the Toe Tag sales incentives, making it the same ‘ol shuck and jive to get the metal moving. And then the problems of poor resale, brand deterioration, etc after.
So no, I really am not surprised. They still need better product and FEWER of them to make an impact. And more time, more money, and a complete re-org via bankruptcy judge.
Well, maybe GM has great cars, maybe it doesn’t. The hard fact is that they squandered their brand loyalty. You don’t get that back easily, especially in the car market.
Half the problem is that GM and GM fans thought that all the people buying Toyota’s secretly longed to go back to GM, but couldn’t because the numbers just didn’t make any sense. Hence the surprise that people don’t flock back the moment they get their act together on a handful of models. That arrogant belief that the American people were always and would always be in love with GM is a big part of why they let themselves rot for so long. I cannot think of another company that has ever so thoroughly and willfully soiled its own brand image as GM.
Most customers are not especially interested in heading back to GM. GM is going to have to woo people back the hard way.
I must confess that when I first saw the headline, I thought the question was “[Am I] surprise[d that there is a] Death Watch 225?” i.e. am I shocked and awed that they have managed to survive this long and appear to be headed for several future death watches?
I think the ad’s “surprised?” message is simply to remind the consumer that these are excellent products that are built by GM. In case you haven’t noticed, there has been some negative news surrounding the big 3 these days. Of course, many die hards here process domestic vehicle information differently.
BTW the answer to the question I thought was being asked is yes. And sadly, yes, I do have a dog in this fight, and it’s fortunes are tied to the General.
Yeah. It think GM should change their name. Gives them a bad rap. For instance, I found this cheerful headline pronouncing “Consumer benefits could drive switch in GM opinion.” And look where that got me …
Has anyone ever noticed the square “GM” badge on many of their cars that are placed just behind the front tires? I haven’t seen them on EVERY product, but it’s on quite a few…you just have to look for it. Every time I see that, I just can’t believe how stupid it is. Why would I buy a Buick with BOTH a Buick and GM badge? What car am I really buying? You don’t buy an Apple computer to run Windows, you buy it to run the Mac OS.
And the Impala is the best large sedan named after an African cloven-hoofed animal,
C’mon, it’s not a terrible car. Everyone hates on the Impala and Cobalt just because they aren’t the class of their segment, but they’re decent cars, at least the ones I’ve rented have been fine.
However, if there are any consumers that are unaware that the Malibu is made by GM, it is because the fact that GM also makes the almost identical Aura and G6 confuses the hell out of them.
Only car guys know they’re on the same platform. The G6 looks nothing like the other two. I do wish, however, that GM would give the Aura, ‘Bu and Lucerne differently shaped C pillars.
I remember being at my local annual auto show the year the XLR was first displayed and I sat in each of the new Cadillacs. My joy crumbled to dismay and shock. There was no rear leg room! And these were supposed to be… Cadillacs! I have to agree with Detroit-Iron. GM has lost vision and doesn’t seem to know what previously had been special and exceptional about their products. Does anyone remember the quote of a GM exec saying at a shareholder meeting, “GM isn’t in the business of making cars; it’s in the business of making money?”
I kinda got caught by that “if you’re so smart why aren’t you rich” line.
That seems to presuppose that smart people aren’t rich. I’d submit that this is a fallacious assumption.
I’m so sorry to see the once great GM in this place.
Current management is so inept that they try to use their one decent brand (Cadillac) to help rescue a meaningless corporate badge (GM). This is as stupid as the Chrysler full page ad “Thank you for the bailout, America”. We taxpayers give you money so you can run a useless ad thanking us? ARRGHHHH!
These once-great companies have enough challenges– being run by idiots is certain to take them down. There is no hope until current management is thrown out. Bankruptcy is the best option by far.
I was behind a Cobalt SS on the way home today. this is the first time I really looked at one. The rear valence, and I’m not joking, is the same plastic screen that the disposable tray my last purchase of seedlings from the garden center came in. Then I noticed the tail lights. I’m fairly certain the cars tail lights are the same $20 utility trailer light kit you can pick up at any hardware store. When he signaled left and the round brake light blinked, I actually let out a laugh. Sorry GM, if this is one of your bread and butter cars, you’re going to be going hungry.
Reminding potential buyers that the Cadillac CTS is from GM is plain wrong. After being dragged through the mud for months and months the GM brand has very little value. To paraphrase Bob Lutz, “GM” is THE damaged brand.
Please, GM bloggers. GM is not building a full line of competitive cars.
Let’s take Caddy, I need a large interior in a car as I am 6’4″. There is one car that caddy has that should fit, it is the hoary DTS.
So, I go red tagging and look at the tweaked 2008 model. This is truly a large car (on the outside). Inside things are much more compromised. Front leg and knee room are only adequate, but the back seat is right out of a mid sized car. Huge doors are so placed that you have to struggle to get in, and if I am the driver most people will be up against the front seat backrest with their knees.
A center hump replicating a rear wheel drive car takes it’s piece out of the center rear seat.
A sidewinder northstar pulling a hoary 4 speed auto awaits the driver with a less than race car performance.
AS for resale, while looking at $8000 off of 2008’s I stumble into a”rental return” that went through the GM dealer auctions. Here are the numbers,
Stickered last March for $49,000 (lightly equipped) price today with 12,000 miles, $25,900. And if you think you should grab it before the bargain goes away, this caddy is heading for $15,000 next year if history is any judge.
For $26,000 I can get a 4-5 year old LS430 lexus with 35,000 miles. Which do you think is the better deal? Consumer reports just sent me a car report calling the new LS460, “the most perfect car they ever tested”.
If the Hyundai Genesis stays glued together, and get’s a similar report, I’m heading there next year. Just don’t know if I want the V6 or V8 (there is a choice).
A much more effective “Surprised” ad for the Cadillac CTS would show it on a test track with a voice over talking about it’s handling competence. They could also mention the power output of the direct injection V6. The fact that Cadillac is still owned by GM isn’t a surprise.
P71_CrownVic : “I really feel for GM. They BY FAR have the best products of the Big Three.”
Being best of the the Big Three is about like being the manufacturer of the best frozen pizza. An unintentional case of damning with faint praise. The fact that the Cadillac CTS is much better than the Catera it replaced doesn’t make me want to run out and buy one new. I’d consider buying a used CTS, but explaining the purchase with “but it’s a great deal on the used car market” takes away from the whole luxury brand experience.
I think most of you haven’t seen the ads.
The vehicle in each ad is shown in silhouette, specific features/awards/class leading capabilities (ie. fuel economy for the Malibu) are highlighted then the voice over says that this is a ‘specific model’ made by GM. Surprised?’
Meaning that they are going directly after the perception issue by showing that if you like what you see, whether it is an interior shot, best in segment award winning, or best fuel economy, surprise! You liked a GM made vehicle.
I find it interesting that GM does not have to market it’s cars under it’s tarnished corporate name, yet it’s choosing to do so more and more. Those GM logos on every car they make only showed up in model year 2006. Corvettes barely have the Chevrolet name and logos on them, yet they have silly GM logos on the sides now. Back in the 80’s the keys that has the Cadillac logos on them were cool and the ones that said GM were the cheap looking spare keys you never used. Chrysler Corp. had to sell it’s fanciest cars under it’s corporate name which was usually being draged through the mud. Ford at least could have Pintos blowing up and Lincoln buyers did not even feel associated with that. I think the only GM brand car ever sold/leased was the EV1 and that cars demise was a public relations disaster that is a tarnish on their reputation as well.
I find it interesting that GM does not have to market it’s cars under it’s tarnished corporate name, yet it’s choosing to do so more and more.
GM, collectively, doesn’t think it ever did wrong. If you understand that, you’ll understand a lot about them.
Now, that said, the “Surprised?” ad is in itself a surprising admission of fallibility, but it fails on two counts:
1. People don’t care, or even want to know, the GM makes the CTS. GM is trying to drum up support for itself based on product, which is incredibly stupid: all this does is remind people who might be interested in the CTS that the car is being glued together by a company that’s been reduced to looking under the couch cushions for spare change.
2. GM is not a brand any more than Fuji Heavy Industries is. It certainly has no brand equity.
This is incredibly selfish on GM’s part: they’re trying to say “If we go under, cool cars like the CTS will go away”, to which most people will respond “So why would I buy a CTS, then?”. They’re wilfully ignorant of the fact that anyone who might buy a CTS would probably buy a G35 if GM tanks. This ad probably loses them more than it gains.
If anything is indicative of GM’s utter inability to understand it’s customers, this ad is.
“Every time I see that, I just can’t believe how stupid it is. Why would I buy a Buick with BOTH a Buick and GM badge?”
And this is a serious concern? You have got to be kidding. If there was no GM logo, you would complain that the parent company failed to ID their product.
“I was behind a Cobalt SS on the way home today. this is the first time I really looked at one. The rear valence, and I’m not joking, is the same plastic screen that the disposable tray my last purchase of seedlings from the garden center came in. Then I noticed the tail lights. I’m fairly certain the cars tail lights are the same $20 utility trailer light kit you can pick up at any hardware store”
So typical of the “best and brightest” unfortunately to spread nonsensical trash. Keep up the hate!
I think most of you haven’t seen the ads.
I have, and I have to agree with the editorial — they suck.
The whole point of branding is to craft a message that projects unique qualities and benefits onto the products that carry it. This is particularly important with luxury cars, because the higher end brands allow the companies to pull a lot more revenue out of R&D and platforms that went into higher volume, lower price products.
Slapping a GM logo onto a Cadillac only drags down Cadillac. The ads should position Cadillac as a higher end luxury statement, but all the GM logo does is to lump it together with the rental cars and second-rate product that GM is known for.
That’s just a lousy idea. Just imagine if Bentley ads promoted those cars as “Bentley, built by Volkswagen. Shocked?” or if Ferrari was pitched as “Brought to you by FIAT. Excited?”
Yeah, those ads would be as dumb as these GM ads. The difference is that the Europeans knew better and didn’t make them.
no_slushbox : Mercedes and BMW are not really luxury brands. In Europe they are somewhat mainstream brands. Cloth, four-bangers and steel rims, but rear wheel drive, excellent safety, and, for the most part, excellent build quality. Unfortunately in the US well made, safe cars with rear wheel drive have become considered a luxury.
I have never thought of this in such stark simple terms, but I believe it is essentially true. And more than just a bit depressing.
Cadillac is such a strong brand– still– that all it really needs is world-class products.
How can anyone say something like this… I own, drive and love Cadillac and even I am the first to admit that the brand is as DEAD as Saturn, Pontiac or Buick…
Lets be honest here, Oldsmobile was in beter shape in 2000 when they stuck the knife in that brand…
Cadillac has only ONE car that sells… The CTS and even that car creates confusion… What exactly does the CTS compete against? A BWM 5? MB E? its the same size… but it totally out classed in every measure… It does stand up nicely against a BWM 3 or a MB C but it is to big and heavy…
The rest of the Cadillac lineup is a JOKE… The DTS is nice if you are an octogenarian.. The “Lutz designed” STS has to be the biggest joke at GM… and the BLS that they plan to bring to America doesn’t sell in Europe… I hope they call the American BLS the Cimarron
The current supply of XLRs is over 300 days… They could stop making these cars and still have enough for MY2009 AND MY2010. And this is supposed to be the flagship.
Oh but wait, it gets worse… The replacement for the Head gasket blowing half case leaking joke that is the Northstar has been cancelled… If you want a V8 Caddy you can either have a truck engine or a Leaky-star…
The replacement for the really bad STS and 18 year old DTS is on-hold INDEFINITELY.
So there we have the ONLY division at GM that is worth something and it turns out it is worth nothing.
How is this brand “strong”… It, like all other GM brands, has been managed into oblivion.
CamaroKid :
A successful brand almost always starts with a successful product. For example, the Dyson vacuum cleaner or the first Cadillac (with interchangeable parts!).
Once the product establishes the brand, the brand often takes on mythic status. In other words, the products can fail to live up to the brand’s promise without completely killing the brand. Ever tried killing a myth?
For example, Volvos were known for their safety. Even though there are other models that are at least as safe or safer, the myth continues. A Toyota may not be as reliable as another brand’s vehicles, but Toyota owns the rep. Or, as they say in the biz, the “mind space.”
At the top end, Mercedes and “engineered like no other car in the world” are still synonymous in many consumers’ minds– even though Mercedes did everything in their power to sever that connection.
In short, people still expect a Cadillac to be the world’s best luxury car. They may be thinking, well, those were the days. Mercedes, BMW and Lexus are now far better. But IF Caddy came out with a world-class, class-leading automobile, consumers wouldn’t be resistant to the idea. (As they were with the phenomenal VW Phaeton.)
“Not being resistant” is a ways from “receptive” or “ready to buy,” but it’s not such a high mountain to climb. If Cadillac survives GM’s demise, it could stage a genuine comeback. America certainly has the know-how.
CamaroKid-
Respectfully, I do not believe-“I own, drive and love Cadillac” statement for a minute. CTS is an excellent product. STS, DTS are in sales slump right now (along with the entire industry) but you cannot fault them as a poor product (or as “biggest joke” nonsense). SRX is about to be replaced. With gas prices down to $1.39 here in north NJ, Escalade sales have picked up tremendously with nary an ’08 available. SLR a niche product. And according to you Chevrolet has no value?
Robert…
You and I both know that
In short, people still expect a Cadillac to be the world’s best luxury car.
Just isn’t true anymore. Maybe in the 50’s, 60, and for a short time in the early 90’s… but now most people look at Cadillac as the maker of Full sized “old man” cars… This is what Cadillac became in the 70’s, 80’s and this still lingers today. I’m 42, when I bought my STS, EVERYONE asked “You bough an old man car”. The ribbing I got with my Allante was even worse. “Hey you put your Caddy in the dryer and it shrunk”
The fact that GM advertises the CTS as “hey look what Cadillac makes” even shows that GM knows this.. The days that people “expect” Cadillac to be the “world’s best” have long since past.
World Class luxury at Cadillac is as relevant as Pontiac is Performance Coupes… Neither are true.
And Bridge2Far,
I drive a 2002 STS, loaded, a rare unlimited top speed “W” car with in dash NAV. And I also owned a Red on Black Allante.
The CTS is a great product, its a little to small for me an my growing family I need a full sized Caddy. If you don’t think the the STS or the DTS are jokes… take a look at the unit sales… Most DTSs are sold to rental fleets or men in their 80’s… The “new” STS has been as sales Dog since day one. In 2009 the STS will approach unit sales that were common for the 1990’s Allante. And you spell XLR with an “X”
I never said that Chevy had no value… I said Cadillac has no value.. Though the share price would suggest the value of either is less then zero.
Thanks for the spelling lesson. Unfortunately, it looks like you are far too concerned with what your “friends” think of your purchases. And I think you might be a little too much into stereotyping as well. And you are basing your experiences on a discontinued model and a 7 year old sedan? Sorry also that I misinterpreted your statement that Cadillac was the ONLY division that was worth something meant that other divisions were worth zero. My bad.
Bridge,
We are talking about the public perception of the Cadillac Brand… My experience, as a Cadillac buyer has been that everyone thinks I’m a drug dealer, a pimp, or that I’m driving my dad’s car (he is 73)… (I’m too short to be a basketball player)
Sadly THAT is the perception of the Cadillac brand.
I have looked into and driven the new CTS… and as I posted it IS a very nice car… A little small for me and my family… We use the car for frequent “interstate” trips and I need a big back seat… and a big trunk. The CTS doesn’t cut it…
Want to know why I drive a 7 year old “discoed” car… (The 2004 Seville wasn’t discoed BTW they still sell the platform over at Buick… The 2009 Lucerne IS an STS) I drive this car because the new STS is an EMBARRASSMENT…
My car is bigger, pretty, has a nicer interior and is considerably more comfortable… Why would I want to trade in on that.
I have 4 friends/co-workers who drive a 1998-2004 Seville… Most, like me, bought them new… Want to guess how many are considering a new STS (or a CTS for that matter) None of them.
Ask them who makes “luxury” and you will get
MB, BMW or Lexus.
Bridge2far: STS, DTS are in sales slump right now (along with the entire industry) but you cannot fault them as a poor product (or as “biggest joke” nonsense).
DTS sales have been declining for years, and the current STS has been a flop from day one. And while they are not BAD cars, the DTS appeals to a dwindling segment of Cadillac loyalists, while the STS is barely competitive with the second rank of luxury sport sedans.
“Surprised?”
That’s a very very very LAME tag line for GM products.
In marketing, you should never ask a question that you don’t know the answer to. GM hasn’t done that here; they know the answer. But you should also never ask a question when you know the answer might not be flattering.
“Surprised?”
“Yes, your products are usually crap.”
“Surprised?”
“No, I think your warranty work is untrustworthy anyway.”
“Surprised?”
“Doesn’t matter if I’m surprised because I no longer care.”
In a modern public company, marketing has multiple objectives which can only be met, regardless of resources, by segregating the corporate marketing from the product marketing. But in a modern multi-media world, there are necessary justapositions. GM is doing the right thing by reviving awareness that Cadillac is one of their brands, and that CTS is one of their products. It is, after all, GM that is the carrier (and hopefully the accumulator) of market value as a public company, so that entity must be maximized through a variety of real performance measures *along* with conscious efforts to shape perceptions of it. This is elemental to modern marketing and the necessary tiering of corporate, divisional and specific product brands. No question, GM lost most of their long-prior expertise in marketing, but they shouldn’t be criticized for taking a step in the direction of renewed marketing competence.
That said, GM has epic repair ahead to restore its marketing chops to an executional level where it actually contributes to creating demand for, and selling, their cars.
In the 1960s, someone at GM understood this. At a time when the differences between divisions were acute and brand meaning was incisive, the GM Mark of Excellence appeared on *every* GM car, and a portion of their TV advertising buy was allocated to promoting that mark and its meaning. Sometime around 1972, during the great unwinding of marketing expertise and institutional memory in Detroit, the practice ceased and the relentless homogenization of GM cars hit a new point of steeper inflection. As with most dominant companies, GM’s trajectory did not reach apogee in the American market until several years after critical injury.
Cadillac is the strongest divisional brand remaining in GM’s North American panoply, with Chevrolet still meaningful and salvageable close behind. “Standard of the World” is neither supported by product nor sustainable by any automaker anywhere, but Cadillac remains perceived as a luxury brand with performance intimations, the latter aspect having been sharpened by product introductions since roughly 2003, and concepts promoted since 1999.
People who buy Cadillacs today, with the exception of the DTS, want something luxurious, performing *and* distinctive, to rise above the sea of sameness in the generic luxury realm. Cadillacs today look bold where other cars appear undifferentiated. For many Cadillac buyers (no, not just the heavy-set ones) part of luxury is more interior space. And technology integration that isn’t befuddling or unintuitive. Part of luxury is more emotional design. And today they can get all that in a package that is fully competitive for handling and motive characteristics.
In this respect, Escalade, CTS, STS and XLR hang together, but they all need a commitment for continued development. I really wonder how many of the STS detractors have actually driven the car. It’s far better and more competent than rumored here, and if you want to see how much goodness is in its bones, drive an STS-V. XLR may not survive, but a large coupe should take its place if XLR dies. We have further iterations of the 2nd gen CTS coming. Cadillacs are gaining ground here in Southern California, a harbinger market. It’s mandatory that GM feed Cadillac product, and fully correct that GM connect the corporate brand to the division, under the current structure.
Unfortunately the choice to articulate the connection via “…surprised?…” is equal indicator that most of GM marketing remains deep in dysfunction. A correct strategic view cannot overcome relentless tactical error.
anoldbikeguy correctly relates the ad in his comment above. The articulation that I consider sub-optimal is much more serviceable in actual execution. One thing to keep in mind is that while people my age and older (54+) mostly know that GM makes Cadillacs, as a Cadillac owner I am constantly surprised to find how few people under 40 understand this. For people still economically in steep ascent, many of the corporate – product brand relationships are simply lost. Equally, people don’t know the relationship between VW and Audi, and now surely not Porsche in the mix too. Very few people know what corporate brands actually make Bentleys and Rollers. These distinctions which were so embedded in our old-media awareness have to be re-asserted with ascendant demographics. GM marketing isn’t aiming the GM association ads at you, Mr. 50 year old. It is crafting a perception in people 25 – 15 years your junior.
Phil
I really wonder how many of the STS detractors have actually driven the car. It’s far better and more competent than rumored here, and if you want to see how much goodness is in its bones, drive an STS-V.
I have driven both. Problem #1 my wife looks at the car and says, “Wow that’s ugly”. Next problem, inside the dash, the seats and the appointments are (there is no nice word for it…) Cheap… A new Malibu is nicer inside, and so is my 7 year old car… I know GM is going broke but do you have to make it so obvious.
Third problem… the car is “tight” and cramped.. The wife can’t tell it apart from the CTS… Walks over to one in the showroom and says… Wow this one is almost 1/2 the price of that. The CTS got bigger the STS got smaller and now most customers can’t tell them apart… Its one thing that most GM customers can’t explain why both a G5 and a Cobalt are sold… But we have two cars in the same segment in ONE division. Come on GM PRODUCT PLACEMENT!
Moving on… Mechanically 320 Horsepower from 4.6 Liters is “ho hum”; mid to bottom tier of the performance ladder… 300HP from 4.6 Liters was world class in 1996… That was 13 year ago… Come on Cadillac if you want to be “world class”, “Standard of the world” at least keep up with Hyundai.
We won’t talk about reliability issues with the famed Northstar… It took GM 13 to fix the headbolts and head gaskets… THIRTEEN YEARS.. Issues around Cranks Sensors, oil leaks, oil consumption and coolant problems STILL remain. Great commitment to your best customers.
Of course my opinion is a statistical sample of one. But you would think that I’m Cadillac’s core demographic, I’ve been driving Cadillacs since I was in my 30’s I have a post graduate degree and I make mid six figures.
Cadillac has been unable to figure out what I want in a luxury car… I’m not the only one, and the sales numbers back this up. In 2009 GM will be lucky to sell 8,000 of the “new” STS. In 2008 they sold on average about 700 per month…
If the car is SO good why are customers staying away in droves…
Typically, a Cadillac dealer will inventory far more of the CTS as it is the hot product with rave reviews (Motor Trend Car of the Year). I will grant you that the CTS and STS look somewhat similar. But I also will tell you that the STS is a fine automobile and your comment of “cheap” is way off the mark. And please- don’t mention Hyundai in the same sentence as Cadillac.
And please- don’t mention Hyundai in the same sentence as Cadillac.
I think you’re holding on to something that is no longer there. Caddy sure used to mean something, and so did Hyundai. I would definitely say that for just as much as Caddy’s star has fallen, Hyundai’s has risen. The new Genesis sedan looks quite nice and very luxurious, at least to this sports car owner.
The new Genesis sedan looks quite nice and very luxurious, at least to this sports car owner.
It shows what can happen if you build a nice to look at sedan with an engine that actually makes world class numbers. If you look at the month by month sales numbers of this Hyundai… it out sells the STS by almost three to one. If trends continue it will be 4 to 1 by March.
This car has been on the market here since late July and it is already selling on par with the CTS… Both the STS and CTS sales numbers are dropping (like stones BTW) and the (turn head and spit) Hyundai is picking up sales numbers every month… I think it was on this Blog that someone said the Genesis would kill Buick… Nope, Buick is already dead, the Genesis is killing Cadillac.
Yes we won’t mention Hyundai in the same sentence as Cadillac, if we did the engineers at GM just might build an engine that can keep up with a POS Korean car… and the designers at GM just might fix the STS so that it isn’t so “fugly”.
And we wouldn’t want that would we…
“Saturn’s branding is in such a shambles that GM’s own TV commercial shows a customer who thinks he’s in the wrong showroom.”
Text book case in how to build millions of dollars in brand loyalty from the ground up and then toss it down the toilet. So Spring Hill, TN is now on temporary shutdown from building the Traverse. GM probably won’t be hosting any Traverse homecomings in TN anytime soon…
John R asked:
December 26th, 2008 at 5:05 pm
Can anyone answer this for me?
Why is there a little silver “GM” badge on the front passenger doors of every single model across the range?
Does anyone else think this looks tacky?
It’s one of a laundry list of reasons why I don’t give GM products a second look…except aforementioned CTS-V.”
You see GM got freaked that people didn’t know who they were anymore and started slapping the corporate logo on everything (even the vette got it somewhere). I remember the announcement a few years back. This mirrors the Chysler of yesterday (at least prior to Daimler Chysler and Cerebus-Chrysler) putting the little Pentastar logo on the front fender infront of the passenger door. This told the passenger that the vehicle was a MOPAR brand.
However, I can not fathom how the GM plate got by the corporate bean counters as more cars are de-contented…
Yes the Genesis is a nice car. I’ll let you know what I think if I ever see one on the road. It must be as nice or nicer than the Excel was. Hope it has a 10 yr warranty…
“You see GM got freaked that people didn’t know who they were anymore..”
Yes, that is true. A few years ago many people could not recall who or what General Motors was, the world’s largest automaker.
A lot of folks say they want Cadillac to be the Standard of the World like it was back when Maybach was on it’s first lifetime, but I do have to wonder what the reaction would be if they engineered a direct competitor to the Rolls Royce Phantom or Maybach 62?
Cadillac in the same breath as Rolls Royce and Maybach? My heart is a flutter. Does anyone remember how much better than anything a Fleetwood Elderado was? When I was a kid the first thing I bought with my own money was a motorbike (Kawasaki KT30). It was a big deal. My parents were nonplussed, but when it came time for our once a year summer vacation, they packed our suitcases and put them in the trunk. And then they put my motorbike in the trunk too. And locked it. No roof rack. It was better back then. I now dream of that car with a 150kw electric motor and a motorcycle engine. Same car, same drivability – just updated efficiency.
I just find it sad that there is such polarizing opinions of the realities that are GM. It almost makes me think that there are a lot of GM employees posting on this blog.
Take emotional connections out if this equation and re-evaluate: GM is devalued and practically worthless as an investment, their brands are damaged beyond repair as a result of DECADES of mismanagement, and at least from my experience their products are shoddy at best.
My current company car is a loaded 06 Chevrolet Equinox LT AWD. It is loose, handles badly, is assembled with all of the care of a cheap dime-store plastic toy, and the interior is made of cheaper plastics than a disposable plastic take-out container. There are more rattles than I can count, the “check engine” light comes on EVERY time the gas tank hits 50% empty (the dealer still cannot figure that one out), and yesterday the glovebox opened all on it’s own and dumped all of the contents out onto the floor while I was driving down the road. And now it won’t stay closed. And for the record it has only 36K miles on it.
My old Mercedes E300D had almost 500K on it and it was in better condition.
So… anyone at all surprised?