Cadillac Aims for Full Showroom With Expansion Plans


  • 2015 Cadillac Escalade Picture

    2015 Cadillac Escalade Picture

    Cadillac wants to provide consumers with a "full showroom," as it rolls out vehicles like the 2015 Cadillac Escalade. | February 14, 2014

Just the Facts:
  • Cadillac tells Edmunds it is aiming for a "full showroom," as it has more vehicles under development than at any time in General Motors' history.
  • The brand will add two new vehicles in the next 18-30 months.
  • Cadillac wants to attract buyers of German luxury cars, but it has no intention to compete nameplate-by-nameplate with Mercedes-Benz and BMW.

CHICAGO Cadillac tells Edmunds it is aiming for a "full showroom," as it has more vehicles under development than at any time in General Motors' history.

Although Cadillac plans to expand its vehicle portfolio this decade, the luxury automaker has no intention to compete with each BMW and Mercedes-Benz vehicle.

"Just look at just how broad Mercedes and BMW are," said Robert E. Ferguson, senior vice president of Global Cadillac in an interview at the 2014 Chicago Auto Show. "Their portfolio is really, really wide. We have no aspirations to get that broad."

The Cadillac brand is currently in an expansion mode.

The redesigned 2014 Cadillac CTS went on sale this past fall, followed by the 2014 Cadillac ELR coupe in December, a plug-in hybrid.

Shipments of the redesigned 2015 Escalade will start shortly.

Additionally, Cadillac offers the XTS, ATS, and the SRX crossover SUV. In all, Cadillac offers six nameplates. When studied by model, meaning coupe, wagon and high-performance V-Series derivatives, Cadillac offers 12 models for the 2014 model year.

By contrast, Mercedes-Benz offers 13 nameplates (CLA-Class, E-Class, etc.) and 65 models for the 2014 model year. This does not include the full-sized Sprinter van that is sold by many Mercedes-Benz dealers.

GM insiders and industry sources say the number of nameplates sold by Cadillac could rise to nine later this decade, still far short of Mercedes-Benz.

Ferguson would not say how many nameplates will be added this decade, but he does provide a rosy prediction: "I was taking to Ed Welburn and he said there are more Cadillacs under development than at any time in General Motors' history."

Welburn is General Motors vice president of global design.

"We want a full showroom for our consumers and our dealers," Ferguson said.

But a lineup similar in size to Mercedes-Benz is not in the plans.

"I don't think we need one," he said. "I think we can satisfy the markets that we are in by doing an excellent job with what I would call a full portfolio but not an excessive portfolio."

GM sources say that over the next 18-30 months, Cadillac will add two vehicles, bringing its nameplate total to eight, five short of Mercedes-Benz's current lineup.

The additional nameplates will include a $100,000-plus, rear-drive flagship that will take aim at the Audi A8, BMW 7 Series, Mercedes-Benz S-Class and Lexus LS. Cadillac has invited owners of these high-end luxury sedans to clinics to review the Cadillac Elmiraj coupe concept. Additionally, Cadillac is trying to determine in these clinics what it would take to get these luxury car owners into a future six-figure Cadillac.

A small crossover SUV will be added that will be positioned below the SRX. Ferguson suggested that a vehicle about the size of the subcompact Buick Encore might be a good fit for Cadillac, especially for sales outside of the United States.

A third nameplate also is being studied, a crossover SUV, industry sources say. The vehicle would be positioned below the Escalade and above the SRX. The vehicle likely would be developed off the next-generation Buick Enclave vehicle platform. If that vehicle is developed, Cadillac's nameplate total would rise to nine.

Edmunds says: It is an interesting product strategy, but the fickle-minded public and unexpected trends might force Cadillac to be closer in alignment with the German brands by the end of the decade.

Comments

  • lions208487 lions208487 Posts:

    It's a smart move by GM. For the same reason, Acura, Infiniti, Lexus, and Audi dealers do not sell their luxury brands next to their non-luxury brands in order to maintain some sort of status. One reason why some associates won't step foot onto Hyundai or Kia lots, because they don't want to drive their 50/60K car off the same lot of a 25K Sonata/Optima.... It's a bit materialistic, but that's how some of my clients are, and they want the full luxury experience.

  • More cars! Super! Bring on the Cadaewoo Veranorado!

  • themandarin themandarin Posts:

    Still unclear on what exactly a "full showroom" means

  • kokomojoe kokomojoe Posts:

    A Cadillac dealer should be exclusive Cadillac and give Cadillac treatment, my local dealer is GMC, Buick Cadillac and the service is not what I have come to expect from a Cadillac dealer will never buy another Caddy from a multi line dealership

Leave a Comment
ADVERTISEMENT

Featured Video

ADVERTISEMENT

Marketplace

up2drive

Get Pre-Approved for a Loan


Car.com

Credit Problems?
We can help you get Financing!

ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Have a question? We're here to help!
Chat*
Chat online with us
Email
Email us at help@edmunds.com
*Available daily 8AM-5PM Pacific
Phone*
Call us at 855-782-4711
SMS*
Text us at ED411