Cadillac's president isn't planning to cut prices to reverse the trend of slumping sales for the brand.
"We cannot deny the fact that we are leaving behind our traditional customer base. It will take several years before a sufficiently large part of the audience who until now have been concentrating on the German brands will find us in their consideration set," said Cadillac President Johan de Nysschen in a interview with Automotive News.
"Either you have to bring your volume aspirations into alignment with reality and accept that you will sell fewer cars. Or you have to drop the price and continue to transact at the prices where you were historically. I think the logical conclusion is that it's better to build off a very solid base in terms of [product] credibility, charge a fair price for the car and realize you have to wait until the volume comes."
Some Cadillac dealers and analysts believe the pricing strategy that the brand has taken to be in line with such competitors as Audi, BMW, and Mercedes-Benz is hurting the brand. But de Nysschen is confident in Cadillac's lineup and believes that the brand's legacy buyers will give way to import buyers who are interested in the brand thanks to a better customer experience and a more fleshed-out portfolio.
Source: Automotive News (Subscription Required)