Last post on Feb 09, 2013 at 10:09 AM
You are in the Cadillac CTS/CTS-V
What is this discussion about?
Cadillac CTS, Cadillac CTS-V, Sedan
#4781 of 6595 production up somewhat
Oct 17, 2003 (2:44 pm)
I have made several posts backing up my position that the SRX rampup has hurt the CTS.
Production this week was up a little over last week.
926 vs. 7xx last week and the weeks before.
SRX production is up also to a high of 906 this week.
Around 43,000 CTSs have been produced so there will be about 50,000 produced for 2003!
If sales continue to hold up there will be about 50K sold also.
13,000 more than last year.
And double Cadillac's prediction of 25K CTSs sold per year.
#4782 of 6595 production up somewhat by b4z
Oct 17, 2003 (5:12 pm)
Do you think the fact that CTS is selling so well will reduce incentives this year. Hope not, as this is the year I intend to buy a CTS.
#4783 of 6595 sales
Oct 17, 2003 (6:24 pm)
CTS really hasn't had any rebates since it was introduced. Just 0% financing and conquest rebates.
There have been some coupons offered but that is about it.
CTS is highly profitable for Cadillac. Unlike the deville which has had rebates as high as 5K this year.
A way to look at how much revenue CTS brings to GM is to multiply volume by sales price.
If they sell 20,000 more cars then they predicted,
$35,000 a car that is $700,000,000 in revenue!!
If they make $6,000 on each car then it is $120,000,000 pure profit.
Kind of breathtaking.
And the fact that Cadillac hasn't had to do any
costly incentives on this car makes it even more impressive.
I know we would all like incentives, but because there haven't been any it must be doing good things for resale value.
Oct 18, 2003 (5:32 am)
Of course, a brand new car and new car platform is an expensive undertaking. It's not uncommon for a car company to spend a billion dollars on a new design, so your figure of $120 million in profit may not seem like much now. But the development of the Sigma platform is being used for a number of cars at Cadillac (SRX, STS for sure) and possibly elsewhere at GM, which spreads out the costs. The high-feature V6 is being used worldwide in a variety of nameplates. And the Northstar V8 has been around for a decade and has been getting development dollars for upgrades and RWD mods, not a total redesign (much cheaper).
#4785 of 6595 The number I've heard
Oct 18, 2003 (7:13 am)
Is $5-$6 billion for the entire Cadillac revamping, including all engines and chassis.
A reasonable investment, considering the profits these cars generate... just throwing a few guessimates on a calculator says $1.5 -$2 billion yearly for the division once all of the models are out.
#4786 of 6595 rebates/incentives
Oct 18, 2003 (11:49 am)
0% financing does cost money, though far less so now with the treasury rates as low as they are. Far less, for instance, than 0% for 48 mos cost Saab in 10/1991 when we bought our 9000T.
The conquest-cash is relatively small potatoes for GM.
#4787 of 6595 sevenfeet0
Oct 18, 2003 (12:20 pm)
That was $120,000,000 profit over the original 30,000 cars they expected to produce.
They are making at least $300,000,000 in pure profit every year the CTS is in production.
That is over and above any development costs.
Oct 18, 2003 (6:41 pm)
Too bad most of that profit goes to legacy costs and not developing better vehicles. The high legacy costs will ensure continued loss of market share for Ford and GM.
#4789 of 6595 Legacy costs
Oct 19, 2003 (6:15 am)
Didn't seem to stop GM from fixing Cadlllac.
Oct 19, 2003 (6:47 am)
What are legacy costs?