Cadillac Owners Forum banner
Status
Not open for further replies.
1 - 3 of 3 Posts

· Registered
09 CTS 3.6l SFI 6MT
Joined
·
146 Posts
Ewill,
My compliments on a well thought-out position.

To the original poster - I believe most on this site are Cadillac supporters. But, one cannot deny the issues facing GM as a corporation.

Cadillac is a great success story that is still being written. The turnaround in the Cadillac brand within a few years, is just short of a miracle.

The scope (company, brand, vehicle) of the discussion is where there may be some misunderstanding.

GM
They are in financial crisis that is having an effect on the image farther down the chain. Some issues are structural and created by previous management administrations based on wage and benefit packages given to all employees, not just UAW or management, that are not sustainable. You can almost say that GM is a large social program. It is not a wealth creating business. In fact, only 4car companies actually create wealth. You can guess who they are.

One of the primary tenets of capitalism is growth. When your company is shrinking, too much time is spent on internal (right-sizing) efforts and not enough on creating, manufacturing, and selling the product. This is not unique to GM.

Many of the issues are self-inflicted. I believe a major wound was when the purchasing czar, Ignacio Lopez, started ripping up supplier agreements back in the 90s and set up the current situation where many of the suppliers are going bankrupt. To echo your sentiments - GM pays rock bottom prices for parts/subsystems. What kind of value do you think they are getting from many of their suppliers? GM consistently ranks at the bottom by their suppliers. As a result, they donot get the best efforts from their supply base. Now, I have spent my career selling to the auto industry, so my perspective is definitely biased.

Also, the history over the last 20 years is to homogenize the brands. Due to the loss of market share, it is only logical that specific brand segments would overlap with each other, creating redundancy. In reality, GM (and other large manufacturers) only really need three brands at a maximum - bottom, middle, and top. I know... I know - exotics. I guess that is a 4th. But one of the aspects about exotics is that they donot want to be associated with a macro-brands. It loses its panache (sp?)

Cadillac - The current GM success story
I cannot believe this brand has been totally turned around. Four years ago did anyone ever say Cadillac and Sport Sedan in the same article - let alone, sing their praises. Quality, performance, prestige has been restored. Are there issues, you bet. But, the last thing you want to be in the high-end segment is everything to everybody. That is the goal of the lesser, volume brands. My fear is that GM will do to it what they did to Saturn - start something positive then milk the hell out of it and consume the brand equiity they have created. Another words, my largest fear is overproduction. By making a product that exceeds demand, they can keep the selling price higher, profits higher, and resale higher. GM management will want to mine it for the quick sales figures.

GM really did a great job in deciding the vision of what the brand should do to address the need of a well defined demographic and took the risk with design to get attention. You can say alot (and much was negative) when the "Art & Science" design started with the CTS- but it sure got attention. Now, it is the most identifiable body style to brand out there, maybe with the exception of BMW.

Now, GM needs to create that same vision/identity to the other brands, There are indications that this taking place.

Vehicles
There is no need to go into details here, that is what the forum is here for. But, my CTS is the first car that I am actually proud to own since my '76 Camaro. It is very simple - it is the first car that I have had since then that is FUN TO DRIVE that I can actually use for business. Now, other vehicles and other vehicle brands offer the same image - but the CTS has unique styling that I like, powertrain requirement (manual), excellent quality, and it is a US based company.

In any segment, Best-in-Class = high profits. The trick is figuring the class you want to sell to, detemine what has to be delivered, and then deliver it. And one part of the equation is the dealership (selling/buying/maintenance) experience and it appears that Cadillac may need to improve this area based on my personal experience and posts by others.

General Comments:
I own non-GM vehicles for other members of the family. One is a Saturn and couple of Japanese vehicles. Though I have only owned US vehicles up to the last three years, I am impressed with what we have purchased from a Japanese brand. The fact is that car companies are global. The US based companies have the highest legacy costs in the world. It is these legacy costs that make them uncompetitive. But, this is a whole other discussion.

Just my thoughts....

Regards,
JoeKr
 

· Registered
09 CTS 3.6l SFI 6MT
Joined
·
146 Posts
There are two primary groups of Cadillac buyers - the oldtimers that like the land yachts and the new demo that is more performance driven. The largest differences are interior room and ride/suspension.

The US land yacht market segment was effectively taken over by the high-end SUV market. Big. powerful, and roomy.

Luv my CTS!

JoeKr
 
1 - 3 of 3 Posts
Status
Not open for further replies.
Top