Speaking to Automotive News, Cadillac chief Johan de Nysschen said that the automaker’s strategy will be to price cars much lower than the Germans and eventually raise prices as the brand gains traction.
Cadillac has to heap incentives on its cars to move them off lots, he said.
“Knowing that, it seemed to be more sensible to price CT6 right and let the car gain traction,” de Nysschen told Automotive News. “We need to give the car time to establish a reputation. With a very compelling product offering and a good price, I think that’s the way to do it.”
When the 2016 Cadillac CT6 goes on sale in March, that car will cost nearly $55,000 to start — well below the BMW 7 Series, which starts at around $82,000 and the Mercedes S Class that’s around $95,000.
It didn’t take long after the North American debut of the 2017 Cadillac XT5 for people to ask, “What’s next?” for the crossover-starved luxury brand.
At the Los Angeles Auto Show, Cadillac chief Johan de Nysschen told Automotive News that the next Caddy crossover will come in two years and would likely slot below the XT5, in terms of name — but not necessarily in terms of size.
Cadillac’s next crossover, the XT4, will likely go on sale in 2018 with a bigger, three-row crossover coming one year later to bookend the XT5. The battleship-sized Escalade will remain, and a smaller, subcompact crossover could arrive at the end of the decade to give the brand a full range to offer a crossover-crazed market. (Read More…)
Like Randy Newman, automakers love Los Angeles this week as the industry descends on Southern California for two days (really, one-and-a-half days) to showcase their latest and greatest.
Automakers are lining up to show off their wares Wednesday (Cadillac is a lone exception for Thursday) so we’ll reuse our tuxes without dry cleaning for two days, we guess. We’re animals.
We’ll be on the floor live Wednesday to cover everything we can, but in the meantime, here’s a primer to whet your appetites for the show. (Read More…)
Under the best circumstances for the 2015 Cadillac Escalade, I could find a half-dozen reasons not to drive it: It’s too big. Too heavy. Too slab-sided. Too thirsty. Too tall. Too long. Too unwieldy. Too gaudy. Too powerful.
But I kept driving it. Like a salmon driven upstream through bear-infested waters, the Escalade kept calling me to ignore the challenges and instinctually clamber up the power retractable running boards, loosen my belt and start the motor. Who wants to procreate in here?
It’s antithetic to my person. I’m not interested by big, heavy SUVs that cost $89,360 and return mileage firmly rooted in the teens — but somehow I am drawn to them.
Which makes me wonder: why? (Read More…)
Cadillac’s first next-generation crossover will sport a longer and lighter chassis than the outgoing SRX, the company announced Monday.
The XT5, which will be shown first in Dubai, will be unveiled at the Los Angeles Auto Show next week. The car will go on sale next year.
In addition to shaving nearly 300 pounds from the chassis, Cadillac announced that the car would be powered in the U.S. by the same 3.6-liter V-6 found in the ATS and CTS. Only a 2-liter turbocharged model will be available in China for the car’s first year. The XT5 will also sport an 8-speed automatic transmission and available all-wheel drive.
Forget the SUVs for a moment. Cadillac sold more than 100,000 cars in 2013 with similar totals achieved by the ATS, XTS, and CTS. The market has expanded since then, albeit not nearly as much on the car side of the ledger as in the light-truck portion.
Nevertheless, Cadillac will likely sell fewer than 70,000 cars in calendar year 2015.
Is the upcoming CT6 the answer the Cadillac’s car woes, or just another big Cadillac that will do little more than generate all its showroom activity by stealing sales from the CTS and XTS? (Read More…)
General Motors will lay off around 500 workers and eliminate one shift at its Orion Assembly due to sagging demand for small cars, the automaker announced Friday. Those workers may be sent to a nearby plant.
Automotive News first reported on the layoffs.
According to a statement from a GM spokesman, the automaker will “adjust plant production capacity to align with market demand” and eliminate one shift that builds the Sonic. Demand for the Sonic has largely remained flat since the subcompact’s introduction in 2011.
Well that didn’t take long.
According to the United Auto Workers’ Facebook page, General Motors will be the target for the union’s next negotiations. The automaker’s fat profits and long-delayed raises for veteran workers will likely be targets for the union when it heads to the table to negotiate.
The union may also look to bring up wages for newer-hired Tier 2 workers at the automaker. Roughly 20 percent of the workforce is paid at the lower, hourly scale — less than Fiat Chrysler Automobiles’ 40 percent and Ford’s 27 percent.
The union represents 52,700 workers at GM.
General Motors announced Thursday that it would add a second shift to a flexible Detroit plant to prepare for upcoming demand for its cars.
GM will add roughly 1,200 jobs to Detroit-Hamtramck this year to help it build new models, the automaker said in a statement. The plant builds the Chevrolet Volt, Impala and Malibu and the Cadillac ELR there on a single production line. Production of the Cadillac CT6 will start there in early 2016. (Read More…)
Speaking Wednesday at the 10th annual J.D Power Automotive Marketing Roundtable in Las Vegas, Cadillac CEO Johan de Nysschen didn’t mince words regarding Silicon Valley’s infatuation with fully autonomous driving.
The luxury brand chief, while standing before an image of Google’s autonomous prototype, said: “Many autonomous car (prototypes) emphasize sheer functionality. It would be a mind-numbing experience going from point A to B. My goodness, you might as well take the bus.”
De Nysschen said Cadillac’s upcoming Super Cruise strikes a balance between fully autonomous driving and driving yourself.