Jump to content
Cmicasa the Great

Real Measure of Success: Cadillac ATPs Up 15% for June 2015

Recommended Posts

14t24g0.jpg

 

 

 

General Motors’ prestige luxury brand, Cadillac, is in the process of a well-known transformation, laying down a solid foundation for growth well into the future. And despite declining sales volume, Cadillac is reaping (some of) the fruits from its labor by seeing an increase in average transaction prices.

The average transaction price (ATP) for Cadillacs sold in June in the U.S. market topped $52,000, a $7,000 — or 15 percent — increase over the same period a year ago. The brand attributes the increase to ongoing product enhancements that are “transforming the brand and elevating its position in the luxury marketplace”.

“Our goals are to improve the quality of the business in the U.S., while maintaining global growth,” said Cadillac President Johan deNysschen.


Read more: GM Authority

Share this post


Link to post
Share on other sites

Once the CT6 and Vseries vehicles go on sale.. expect that 15% to rise even further as more high-end products in the above $65K range start selling. GM backed off incentives last month.. and dropped overall fleet deliveries by 45%.. Cadillac gained in retail numbers thus the very nice improvement to the bottom line.

 

This is what JDN was talking about would happen when he took over and exclaimed that sales would drop, but prestige would rise. The idea of Cadillac being a volume brand at GM is not a necessary one if one looks at the whole picture. GM has quietly raised prices across the board, allowing for 2008-2013 Cadillac pricing to be slowly creeping into 2014-2015 Buick, GMC, and even Chevy pricing. Meaning that the other brands are selling in a price point that used to be Cadillac's.. while Cadillac is now joining the numbers that Benz and BMW pull in, albeit not in their volume, but ATPS are coming into their stratosphere nonetheless. 

Share this post


Link to post
Share on other sites

JDN's point was exactly that: while overall volume might drop, ATPs and consequently unit margins will increase. Of course, some of that drop in will be recovered by the crossovers that will slot below and above the XT5 (people should not forget that Cadillac is losing a lot of sales in the CUV segment as they only have the SRX right now).

Share this post


Link to post
Share on other sites

Yes-a mature, established nameplate that is now acknowledged by many to be the best large SUV out there. All part of the process.

  • Upvote 2
  • Downvote 1

Share this post


Link to post
Share on other sites

A lot of that pull northward is from the Escalade. 

zactly.

 

Kind of a amazing that people will pay over $100K for truck axled SUV.

  • Upvote 1
  • Downvote 7

Share this post


Link to post
Share on other sites

A lot of that pull northward is from the Escalade.

zactly.

 

Kind of a amazing that people will pay over $100K for truck axled SUV.

Yes, because everyone knows that the main competitors in the segment (Range Rover, G-Class, LX570) have never used solid axles.

You want some cheese for that whine? Yeesh

  • Upvote 2

Share this post


Link to post
Share on other sites

 

A lot of that pull northward is from the Escalade. 

zactly.

 

Kind of a amazing that people will pay over $100K for truck axled SUV

Well, Ford got away with Mustangs (namely GT500s) that pushed $60K with a live axle for years. That same Escalade has also bested the competition in many comparos so that live axle clearly isn't a big deal.

Share this post


Link to post
Share on other sites

A lot of that pull northward is from the Escalade.

zactly.

 

Kind of a amazing that people will pay over $100K for truck axled SUV.

I saw this pop up on my email and I automatically assumed it was SMK our resident Mercedes Fanboi/Cadillac hater. I was wrong.

However, like him you seem to be more concerned with the "how" rather than the results. The Escalade provides on of the best combinations of ride and handling in this class. The GL is far too soft and the Navigator is truck like.

Share this post


Link to post
Share on other sites

A lot of that pull northward is from the Escalade.

zactly.

 

Kind of a amazing that people will pay over $100K for truck axled SUV.

I saw this pop up on my email and I automatically assumed it was SMK our resident Mercedes Fanboi/Cadillac hater. I was wrong.

However, like him you seem to be more concerned with the "how" rather than the results. The Escalade provides on of the best combinations of ride and handling in this class. The GL is far too soft and the Navigator is truck like.

Hmmph, begin to understand you do! Schtick gets old it does. :(

  • Upvote 2

Share this post


Link to post
Share on other sites

A lot of that pull northward is from the Escalade.

zactly.

Kind of a amazing that people will pay over $100K for truck axled SUV.

I saw this pop up on my email and I automatically assumed it was SMK our resident Mercedes Fanboi/Cadillac hater. I was wrong.

However, like him you seem to be more concerned with the "how" rather than the results. The Escalade provides on of the best combinations of ride and handling in this class. The GL is far too soft and the Navigator is truck like.

Hmmph, begin to understand you do! Schtick gets old it does. :(
He can have his opinion and I have mine. Mine just happens to be the right one ;)
  • Upvote 2

Share this post


Link to post
Share on other sites

 

 

A lot of that pull northward is from the Escalade.

zactly.

 

Kind of a amazing that people will pay over $100K for truck axled SUV.

I saw this pop up on my email and I automatically assumed it was SMK our resident Mercedes Fanboi/Cadillac hater. I was wrong.

However, like him you seem to be more concerned with the "how" rather than the results. The Escalade provides on of the best combinations of ride and handling in this class. The GL is far too soft and the Navigator is truck like.

 

Not a slant, but a general fascination….that people spend so much for an SUV. 

Honestly, do you think it is worth the huge price premium over a loaded to the max Sierra? Does a third row and covered storage and more features really add up to the tens of thousands of additional price?

I just don’t think so.

 

And I would say similar for a Navigator above a loaded Platinum F-150, albeit much less of a price delta.  

  • Downvote 2

Share this post


Link to post
Share on other sites

You're comparing to the wrong vehicle. At $100k, you're in Escalade ESV Platinum AWD territory.  The vehicle to compare that to is the GMC Yukon XL Denali. Once you check all the boxes to get to feature parity with the Escalade ESV (and still come up a bit short), the price is $78k.  These are clearly not vehicles for budget minded consumers... the escalade has a much nicer interior than the GMC and I could see that plus the branding as being important to drivers in this segment.  None of whom will care (as sales number prove) about the configuration of the rear axle.

Share this post


Link to post
Share on other sites

A lot of that pull northward is from the Escalade.

zactly.

Kind of a amazing that people will pay over $100K for truck axled SUV.

I saw this pop up on my email and I automatically assumed it was SMK our resident Mercedes Fanboi/Cadillac hater. I was wrong.

However, like him you seem to be more concerned with the "how" rather than the results. The Escalade provides on of the best combinations of ride and handling in this class. The GL is far too soft and the Navigator is truck like.

Hmmph, begin to understand you do! Schtick gets old it does. :(
He can have his opinion and I have mine. Mine just happens to be the right one ;)

Congratulations. You have won the Internet for the day.

But on a serious note: the Escalade is the target for the sedans to follow as far as market buzz goes. If they can get a an a fraction of that then Cadillac will be a force to be reckoned with.

Share this post


Link to post
Share on other sites

You're comparing to the wrong vehicle. At $100k, you're in Escalade ESV Platinum AWD territory.  The vehicle to compare that to is the GMC Yukon XL Denali. Once you check all the boxes to get to feature parity with the Escalade ESV (and still come up a bit short), the price is $78k.  These are clearly not vehicles for budget minded consumers... the escalade has a much nicer interior than the GMC and I could see that plus the branding as being important to drivers in this segment.  None of whom will care (as sales number prove) about the configuration of the rear axle.

I obviously meant to say yukon, but my point stands compared to a top level.

  • Downvote 3

Share this post


Link to post
Share on other sites

A lot of that pull northward is from the Escalade. 

I agree.  I wonder what the ATP is on vehicles other than Escalade and if those are up.  Escalade sales rose a lot in 2014 and so far this year, and it is the most expensive vehicle.  Increase Escalade sales by 50% at an ATP of $80,000 that is going to pull the brand numbers up.   If Cadillac stopped selling ATS, they could get ATP up even higher, but that isn't what is good for business.  At some point they still need volume.

Share this post


Link to post
Share on other sites

I think $75k for a Yukon Denali is nuts, just like I think nearing $100k on an Escalade is nuts, but people will pay it, so more power to GM for getting it.  Obviously Escalade sales are up, so people are willing to pay the price for it. 

Share this post


Link to post
Share on other sites

 

You're comparing to the wrong vehicle. At $100k, you're in Escalade ESV Platinum AWD territory.  The vehicle to compare that to is the GMC Yukon XL Denali. Once you check all the boxes to get to feature parity with the Escalade ESV (and still come up a bit short), the price is $78k.  These are clearly not vehicles for budget minded consumers... the escalade has a much nicer interior than the GMC and I could see that plus the branding as being important to drivers in this segment.  None of whom will care (as sales number prove) about the configuration of the rear axle.

I obviously meant to say yukon, but my point stands compared to a top level.

 

You know that same rule can be applied to the Expedition and the Navigator (which starts at $17K higher than a similarly equipped Expy) as well right? Just built a Navigator on the Lincoln site for almost $74K! Yikes!

Edited by surreal1272
  • Upvote 1
  • Downvote 1

Share this post


Link to post
Share on other sites

If BMW does the X7 well, I think some of these big body on framers could be in trouble.  And maybe not so much because buyers know the difference, but if the X7 rides and drives well, has technology and performance, better fuel economy, etc, I bet they can steal some sales off the establishment.

Share this post


Link to post
Share on other sites

 

A lot of that pull northward is from the Escalade. 

zactly.

 

Kind of a amazing that people will pay over $100K for truck axled SUV.

 

 

 

 

But U kno what?!?!? They DO Tho.. constantly.

 

And despite Drew's words.. Cadillac is getting some damn high ATPs from the CTS, with over $50K, XTS, and even SRX and ATS. The ELR is a foregone conclusion

 

As recently as  March, Cadillac’s ATPs were $54,000, near the top of the luxo segment, according to J.D. Power.  ATPs were up more than $9,000 per unit from the previous March

 

.

Share this post


Link to post
Share on other sites

And to further my point... last year... June 2014:

 

Audi’s average transaction price was $51,696

Mercedes’was $58,669

BMW’s was $52,104.

Share this post


Link to post
Share on other sites

So, to nutshell it; Cadillac's transaction prices have surpassed Audi AND BMW. Not bad… but in some ways not surprising as those brands (and MB also) have been busy pushing downmarket / going mainstream in recent years. ;)

Share this post


Link to post
Share on other sites

 

A lot of that pull northward is from the Escalade. 

I agree.  I wonder what the ATP is on vehicles other than Escalade and if those are up.  Escalade sales rose a lot in 2014 and so far this year, and it is the most expensive vehicle.  Increase Escalade sales by 50% at an ATP of $80,000 that is going to pull the brand numbers up.   If Cadillac stopped selling ATS, they could get ATP up even higher, but that isn't what is good for business.  At some point they still need volume.

 

Well...yes and no about Cadillac needing volume.

Like we have said countless of times...

Cadillac is NOT Mercedes Benz and BMW where those brands NEED to be everything to everyone....from mainstream to blue collar to aristocracy...

Cadillac needs the ATS for image rather than volume.

Chevrolet and Buick and GMC are there for volume.

Technically...Cadillac's cars are ONLY about image...prestige....and on certain cars...LOW VOLUME is PREFERRED.

OK....crossovers from Cadillac may be needed for volume more than low volume prestige....

 

And why the ATS could actually sell in low volume...but high price tags?

Because Chevrolet Camaro helps with the amortization of the platform....and any crossover that Alpha will spawn from Cadillac and/or Chevy and/or GMC and even possibly Opel...

And...CTS...isnt that car on a modified Alpha platform too?

 

Whatever....It seems to me that GM finally has a sound business plan for its entire brand umbrella for the first time since the early 1970s...

 

Unfortunately for Mercedes-Benz and BMW...North America is not post WW2 Europe in which us North Americans could easily accept mainstream offerings and not judge harshly...plus....Europe is home for BMW and M-B and THAT is why BMW and M-B gets sooooo many passes...because Europeans are used to seeing BMW Isettas on their streets...eventually in North America...M-B and BMW are risking image regression with all these mainstream offerings....if it happened to Cadillac...it could happen to BMW and M-B...

BMW and M-B are walking a fine line with that...because if they slip up on their top tier models....its over for them...just like it was for Cadillac...

Edited by oldshurst442

Share this post


Link to post
Share on other sites

Jaguar and Maserati have high ATP's and they have super low volume.  But I don't think any other luxury brand is striving to be like those two.

  • Upvote 1

Share this post


Link to post
Share on other sites

Your content will need to be approved by a moderator

Guest
You are commenting as a guest. If you have an account, please sign in.
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.




About us

CheersandGears.com - Founded 2001

We ♥ Cars

Get in touch

Follow us

Recent tweets

facebook

×