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News: Why General Motors' Cadillac Needs More Than a New Ad Campaign

Rob

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I found this article to be interesting, and I'm currently working on a followup story which I hope to release by the end of the week with my own view on the recent changes within the Cadillac brand.

I'm curious what others think?

-Rob
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Why General Motors' Cadillac Needs More Than a New Ad Campaign

By John Rosevear
The Motley Fool
December 9, 2014


For years, the "problem" with General Motors' (NYSE: GM ) Cadillac brand was simple and obvious: The cars weren't good enough.

Specifically, Cadillac's products weren't good enough to be taken seriously by luxury buyers who might have chosen Cadillacs decades ago but have since come to favor German luxury brands like BMW and Mercedes-Benz.

"Cadillac" used to be synonymous with top-tier luxury, "best-of-breed" products. But for a long time, its products couldn't back up that reputation, and the brand lost its appeal.

Recently, things have started to change. Cadillac's latest models, particularly the ATS and CTS sedans, are as good as Germany's best -- maybe even better in some ways.

So say the experts. But so far, the evidence shows that BMW, Audi, and Mercedes buyers aren't flocking to Cadillac's showrooms. Very few people seem to be cross-shopping the new Cadillacs against their German peers.

Meanwhile, Cadillac's new products are hugely improved, but their higher prices mean they're now too expensive for many of Cadillac's existing customers. Without enough new customers stepping in, the brand's U.S. sales are down almost 6% this year.

That leads us to GM's big challenge with Cadillac: Why aren't more BMW and Mercedes and Audi buyers interested in these new Cadillacs, and what can GM do about it?

Full Story: Why General Motors' Cadillac Needs More Than a New Ad Campaign (GM)
 
I don't think there's any switch they can flip to make this work - it's just going to take time & maybe a generation.

I've been pleasantly surprised that 25 year olds think Cadillacs are cool. But, most of them don't have the money to afford them, even less so after the price hike & with the economy. I think Cadillac/GM needs to try to "groom" this generation so as they get older & maybe get the money to afford one, they will get one. Although I'm not sure GM can afford to take that much of a long term view.

I'm closer to the age range they're targeting, & I'm not sure they can get over the hump they face. My generation got to experience the underpowered, unreliable land yachts they put out in the 80's, bad enough it even ran my ever loyal parents away from Cadillac. It ran me off too after I dealt with a HT4100 engine, & I stayed gone until the art & science design caught my eye. However, I always wanted to get back into a Cadillac, & most folks aren't that manic. Plus the friends I had with parents who could have afforded Cadillacs had BMWs & Audis instead, so that's what they long for.

I wish Cadillac luck, but with some regret because their prices are hitting the level where whether or not I can afford them, it doesn't make sense to me to spend that much on a car (and the associated higher maintenance & repair costs) that I plan to use up & wear out as a daily driver. And the ATS is too small for my taste ...
 
Example of When Cadillac 'pushed' their customers to Mercedes and BMW. The HT4100 Engine.

Hey guys and gals,

I just posted pictures of my (new to me) 1979 Eldorado Convertible. See the 'Gallery Photos' here on the site. It has the reliable Cadillac/Olds 350 c.i. V-8 all cast iron with Throttle Body F.I. --- In 1980 for the gas V-8 Cadillac used the well made and reliable 368 ci. V-8. Then in 81' trouble began with The V8,6-4 (which used the 368 c.i good engine), and then it got worse with the introduction of the HT4100 engine used in The Eldorados from 1982 through 1985. These later events pushed people from Cadillac to BMW and Mercedes.

The HT4100 an all aluminum block with cast iron cylinder heads, was fraught with problems. In a few thousand miles from new they'd often seize up due to coolant leaking into the oil sump and washing down the engine bearings. Also horribly underpowered. The transmissions were weak and broke as well. The porosity of the aluminum block was so airy that coolant, and sometimes oil would seep through the casting and drip on the garage floor. Cadillac started offering special pellets to put in the radiator to stop the coolant from leaking into the oil sump and onto the floor. Not unusual for an owner of an 82' - 85 Eldorado with The HT4100 engine to have replaced it 2X's, sometimes 3 times. There are lots of them available at not much money, and this is why. People became afraid of them. So they stuck them in the back of the garage or behind the barn and forgot about them.

The buyers to this point had been loyal Cadillac Customers. Because of this and other reasons of poor quality they then started buying Mercedes and BMW. Sad, because the styling of these Eldorados, in particular, (1979 - 1985) in my opnion is stunning. Just beautiful cars.

The V8,6-4 introduced for one year only in 1981 was really not a bad engine. It has the reliable and rugged all cast iron 368 c.i. V-8. (basically an underbored, de-stroked 425) The problem was the multi cylinder function that did not always work, but could easily be by-passed. Most ended up getting by-passed so the engine ran on 8 cylinders all the time.

It was like at the time with the gasoline shortages and new EPA Mandated fuel requirements, Cadillac just got caught 'flat footed' and reacted with insufficent and really bad solutions. The HT4100 being the biggest example I can think of.

While I really like this body style (Stunning Cadillac Design), the only sweet spots are the 79', 80', and yes, the 81' with the V8-6-4. I looked and looked for any one of these years in a convertible until I found the one I posted the pictures of today. These years are very hard to find in a convertible in really good condition. It is my opinion people kept these years and drove them until the wheels fell off.

I think with cars like The new CTS and CTSV, the now legendary XLR's (becoming high demand collecitbles) and many other unique breakthroughs by Cadillac Division they are steadily overcoming the stigma of bad engineering choices made in the 80's.

Just my opinions on this 'subjective discussion'. : )
 

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