Confident Cadillac aims SRX at Germans
Sport wagon starts at $38,690, higher than Japan's entries
By Dave Guilford
Automotive News / May 19, 2003
2004 Cadillac SRX
Prestige pricing
Cadillac will price the new SRX mid-sized sport wagon near the top of the segment. Prices include destination and represent base for 2003 models except as noted.
BMW X5 $40,195
Cadillac SRX (2004) $38,690
Mercedes-Benz ML 350 $37,670
Acura MDX $36,200
Lexus RX 330 (2004) $35,600
Infiniti FX35 $34,745
Source: Automotive News Data Center
PHOENIX - Cadillac's pricing for the 2004 SRX mid-sized luxury sport wagon shows the division's newfound confidence. It's aiming at BMW and Mercedes-Benz - and isn't concerned about pricing the vehicle above Japanese rivals.
Cadillac has set the base price of $38,690, including a $695 destination charge. That price applies to the version equipped with a 3.6-liter, 260-hp V-6. Another version powered by a 4.6-liter, 320-hp V-8 will start at $46,995, including a $695 destination charge.
The V-6 version base price hovers significantly above the 2004 Lexus RX 330, a key competitor starting at $35,600. It's in the territory of the BMW X5, at $40,195, or the Mercedes-Benz ML 350, at $37,670.
Cadillac doesn't feel it has to undercut the competition, says Jay Spenchian, SRX marketing director.
"We're going to compete mostly against the Germans," Spenchian says. "We'll be about $2,000 over the Japanese."
Newfound hipness
Cadillac is banking on the newfound hipness it has won with vehicles such as the Escalade and CTS, which feature its new sharp-edged design, as well as the SRX's length and sporty performance.
Art Spinella, president of Automotive Research at CNW Marketing/Research in Bandon, Ore., says Cadillac wouldn't have been able to pull off the pricing strategy in the past.
"If this had been five years ago, I'd have said there'd be no chance," Spinella says. "But Cadillac is starting to have a brand premium with people who are in the 35 to 55 age group. Cadillac actually has a pretty good shot at it."
CNW's research shows Cadillac gaining space on consumers' consideration lists, he says.
Spenchian says Cadillac is aiming for sales in the 30,000 annual-unit range. Buyers are expected to be owners of entry-luxury or prestige sedans, owners of mid-sized SUVs based on trucks and Cadillac loyalists. Buyers are expected to have a household income of $175,000 and be 40 to 50 years old. Cadillac projects that about half of SRX buyers will be women.
The SRX goes into production this summer at the Lansing (Mich.) Grand River plant, which builds the CTS. The SRX will be built on the rear-wheel-drive Sigma luxury architecture that debuted with the CTS, giving it carlike handling.
Stretching Sigma
David Masch, SRX program engineering manager, says GM modified the Sigma dimensions significantly to make the SRX longer than competitors, yet keep its center of gravity low to enhance handling. All-wheel drive and magnetic ride control are options.
The SRX wheelbase is 116.4 inches, 3 inches longer than the CTS. SRX's center of gravity is 25 inches, 1 to 1.5 inches below competitors, Masch says.
The longer wheelbase allows Cadillac to offer an optional third row of seats but also makes the SRX more stable, he says.
"It became really obvious to us in off-road conditions or bad weather," Masch says. "The longer wheelbase makes it much predictable."
Cadillac plans a heavy advertising schedule this fall that will emphasize the feeling of driving the SRX, showing off such features as the optional two-seat-deep sunroof. Spenchian says Cadillac wants to dominate advertising in the segment.
"One of the things we wanted for advertising was to go into the fourth quarter having as much money as anybody's ever had to launch," he says. "I think we're on target for that."
Sport wagon starts at $38,690, higher than Japan's entries
By Dave Guilford
Automotive News / May 19, 2003
2004 Cadillac SRX
Prestige pricing
Cadillac will price the new SRX mid-sized sport wagon near the top of the segment. Prices include destination and represent base for 2003 models except as noted.
BMW X5 $40,195
Cadillac SRX (2004) $38,690
Mercedes-Benz ML 350 $37,670
Acura MDX $36,200
Lexus RX 330 (2004) $35,600
Infiniti FX35 $34,745
Source: Automotive News Data Center
PHOENIX - Cadillac's pricing for the 2004 SRX mid-sized luxury sport wagon shows the division's newfound confidence. It's aiming at BMW and Mercedes-Benz - and isn't concerned about pricing the vehicle above Japanese rivals.
Cadillac has set the base price of $38,690, including a $695 destination charge. That price applies to the version equipped with a 3.6-liter, 260-hp V-6. Another version powered by a 4.6-liter, 320-hp V-8 will start at $46,995, including a $695 destination charge.
The V-6 version base price hovers significantly above the 2004 Lexus RX 330, a key competitor starting at $35,600. It's in the territory of the BMW X5, at $40,195, or the Mercedes-Benz ML 350, at $37,670.
Cadillac doesn't feel it has to undercut the competition, says Jay Spenchian, SRX marketing director.
"We're going to compete mostly against the Germans," Spenchian says. "We'll be about $2,000 over the Japanese."
Newfound hipness
Cadillac is banking on the newfound hipness it has won with vehicles such as the Escalade and CTS, which feature its new sharp-edged design, as well as the SRX's length and sporty performance.
Art Spinella, president of Automotive Research at CNW Marketing/Research in Bandon, Ore., says Cadillac wouldn't have been able to pull off the pricing strategy in the past.
"If this had been five years ago, I'd have said there'd be no chance," Spinella says. "But Cadillac is starting to have a brand premium with people who are in the 35 to 55 age group. Cadillac actually has a pretty good shot at it."
CNW's research shows Cadillac gaining space on consumers' consideration lists, he says.
Spenchian says Cadillac is aiming for sales in the 30,000 annual-unit range. Buyers are expected to be owners of entry-luxury or prestige sedans, owners of mid-sized SUVs based on trucks and Cadillac loyalists. Buyers are expected to have a household income of $175,000 and be 40 to 50 years old. Cadillac projects that about half of SRX buyers will be women.
The SRX goes into production this summer at the Lansing (Mich.) Grand River plant, which builds the CTS. The SRX will be built on the rear-wheel-drive Sigma luxury architecture that debuted with the CTS, giving it carlike handling.
Stretching Sigma
David Masch, SRX program engineering manager, says GM modified the Sigma dimensions significantly to make the SRX longer than competitors, yet keep its center of gravity low to enhance handling. All-wheel drive and magnetic ride control are options.
The SRX wheelbase is 116.4 inches, 3 inches longer than the CTS. SRX's center of gravity is 25 inches, 1 to 1.5 inches below competitors, Masch says.
The longer wheelbase allows Cadillac to offer an optional third row of seats but also makes the SRX more stable, he says.
"It became really obvious to us in off-road conditions or bad weather," Masch says. "The longer wheelbase makes it much predictable."
Cadillac plans a heavy advertising schedule this fall that will emphasize the feeling of driving the SRX, showing off such features as the optional two-seat-deep sunroof. Spenchian says Cadillac wants to dominate advertising in the segment.
"One of the things we wanted for advertising was to go into the fourth quarter having as much money as anybody's ever had to launch," he says. "I think we're on target for that."