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Cadillac: The standard of what?

Cadillac's tagline "Standard of the World" goes back to 1908 when it won the Dewar Trophy. While you might think that the moniker and the trophy have something to do with a feat of racing and daring-do against a cadre of British, French, and German marques, it's nothing of the sort. Rather, Cadillac achieved the trophy because of interchangeable parts. The parts they were producing back then were so well-made that Henry Leland, who established Cadillac, was able to disassemble three Model Ks, mix up the parts, and then put together three functioning cars. This amazed the Brits who handed him the trophy, and the "Standard of the World" was born. During the past several months, Cadillac has been producing news releases that would seem as though the company is the Standard of the World: "Cadillac Global Sales Rise 44.2 percent in January ... 18 percent in February ... 22.1 percent in March. . .40.9 percent in April ... 33.8 percent in May ... 7.2 percent in June." Like the Dewar Trophy being about manufacturing not performance, things are not necessarily what they seem. That is, Cadillac's growth is predicated on performance in China, not in the US. Through June, its China sales are 80,357 vehicles for the first five months of 2017, versus 72,073 in the US. The China number is a 75.4-percent year-over-year increase while the US number is a 1.6-percent decrease. For the entire globe, Cadillac has sold 164,174 vehicles. Of them, 65,250 were the XT5. That was followed by the ATS, at 34,277 units. In the US, the XT5 is doing reasonably well, as it has moved 29,798 units during the first six months. The ATS, conversely, is doing not particularly well, as it is down 26.2 percent with sales at just 7,209 for the year so far. To put that into some sort of context, know that Cadillac has sold 7,370 copies of the generally derided XTS, which is down 24.7 percent. The CTS is down 36 percent at 5,059 units, and the only other car in the lineup (we'll pretend that the ELR doesn't exist anymore and it shortly won't), the CT6 sedan, is up 172.7 percent – but they have sold only 5,397 CT6s. While Caddy talks a good game about competing with the likes of the BMW 5 Series and the Mercedes E-Class, know that those two sedans have been sold 17,036 and 20,783 times this year in the US respectively. So what is Cadillac chief Johan de Nysschen to do? According to Reuters, it is to cull the lineup.

Cadillac chief marketer admits ELR is 'a big disappointment'

During the Cadillac XT5 global launch in Dubai, Automobile interviewed Cadillac Chief Marketing Officer Uwe Ellinghaus and got the CMO to touch on just about every major issue affecting the brand and the industry. After two years on the job, having come from 15 years at BMW, Ellinghaus naturally started with the "passionate Cadillac customers" and "iconic brand" spiel, then they got into a top-down look at where America's preeminent luxury brand stands. Ellinghaus said Cadillac is in a period of transition, lately focused on smaller and more performance-oriented vehicles, which has alienated a chunk of veteran customers and left others trying to figure out what Cadillac is about. He believes that "for a few more years, the products will probably be stronger than the brand," while he does his work of conveying what the company has to offer. But the brand had to make the switch, because "Generation X and Y will make 80 percent of all actual buyers in the next five years..." On top of that, he'll be working on making sure the customer and dealership experiences are where they need to be. Speaking of dealers, Ellinghaus thinks the future will not be brick-and-mortar shops, but digital pickup-and-delivery services. "Nobody wants to go to a dealership for service and maintenance," he says. He said the ELR has been "a big disappointment," but it has taught Cadillac that converting its existing line-up to plug-in hybrids is a better way forward. However, he characterized the plug-in hybrid as "the next all-wheel drive," in that everyone's going to offer it soon, so it will be "an entry ticket into luxury automobiles rather than a differentiating aspect." The CMO thinks the CTS is suffering because of the decline in the US midsize luxury sedan market in general thanks to the SUV and crossover craze, so the brand really needs another small SUV. Head over to Automobile for more of Ellinghaus' intriguing answers, like "I do believe that very long-term hydrogen is really the way," and "it's time to get real" in Europe. Taking a dig at Volkswagen on that last matter, he also said, "I think the absence of the diesel is not as much of an issue as it was eight weeks ago." Related Video:

Cadillac ATS failing to command BMW 3 Series-like pricing as hoped

The BMW 3 Series has long been the benchmark for small and sporty luxury vehicles, but the Cadillac ATS has come on strong in its short time on the market as a true rival in this segment. As impressive as Cadillac's new compact sedan is, however, Automotive News is reporting that the car is still lagging behind the 3 Series when it comes to actual transaction pricing.
According to the article, the average transaction price for the ATS is $39,459 while the 3 Series is at a much larger $44,764, but, just as importantly, Cadillac has about $500 more in incentives on the ATS compared to BMW. Transaction prices are much closer to cars like the Mercedes C-Class and Audi A4. Of course, this is all with the ATS trying to take on its small,sport sedan rivals with a single bodystyle and limited powertrain options compared to the numerous options available from the German automakers in this class.
This uneven battle won't last long, though, as recent spy shots have revealed that Cadillac is hard at work on a high-performance ATS-V and an ATS Coupe. No official word as to when either of these models will be unveiled, but with auto show season set to kick off, we're expecting sooner rather than later. The best news for the ATS is that the Automotive News says sales of the ATS are on target and that 74 percent of ATS buyers are new to Cadillac - two important factors for the brand as it tries to break into this tough segment.