
Cadillac is in a curious state.
Many would rightly argue that Cadillac’s products are more competitive now than they’ve been in decades. Cadillac is making headway in China, a market which accounted for slightly more than half of Cadillac’s global volume in the first-quarter of 2017. Cadillac’s average U.S. transaction prices are also above the norm thanks in part to a high percentage of its sales being produced by the high-dollar Escalade.
But sales in Cadillac’s home market continue to slide. U.S. volume has fallen by a fifth over the last decade and has decreased in two of the last three years, falling to a four-year low in 2016. More recently, U.S. sales at Cadillac are down 5 percent in early 2017 after decreasing on a year-over-year basis in six of the last twelve months.
Long gone are the days when Cadillac could sell new vehicles in America at the same rate as Mercedes-Benz, BMW, or Lexus. Indeed, Cadillac is well back of Audi now, as well. To put an exclamation point on Cadillac’s difficulties, little ol’ Infiniti — also historically reliant on the U.S. market and rather weak globally — outsold Cadillac by a margin of more than 40 percent in March.
What’s next? Which brands will be outselling Cadillac in ten years, or even five, or even two? (Read More…)
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