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Automotive News & Views Can GM make Cadillac the standard of the world Again?
6098 messages, Last post on Aug 14, 2009 at 4:43 PM
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Replying to: douglasr (Jan 13, 2007 11:03 am) Mercedes easily outsells Cadillac in Japan despite costing twice as much. (Fleetwood - 5.5 million yen, Benz S Class 12 million yen). What plausible reason? Prestige, of course, can be the only answer. source: http://www.intelbridges.com/japaneseconsumeruk.html |
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Replying to: douglasr (Jan 13, 2007 11:03 am) What does "Standard of the World" mean? The Cadillac CTS already is the "standard of the world" in U.S.A., but so is the Lexus LS430, E350, E250, BMW 325, 530, etc. This title cannot be a singular claim by any make of car. It belongs to many as it always have. ---mediapusher |
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The actual numbers are for the Japanese market are: Mercedes-Benz (all models) 46,161 Cadillac 1,171 Jaguar 3,461 Audi 15,420 Astons 110 Ferrari 391 Maybach 26 BMW AG 58,755 Bentley 355 Lincoln 0 ---------------------- Total Imports: 261,534 Mercedes and BMW sell across all ranges of product, which Cadillac does not match (there are no "3 series" type Cadillacs!) Given the 33% tarriff on imports plus an additional 20% VAT and licensing/registration fees, an imported car in Japan is a very expensive propasition. (Not to mention every car has to be inspected by the government, and you must prove you have a parking space for it!) Mercedes & BMW are far more entrenched in terms of service and retail outlets, thus can sell more cars. 75% of Japanese sales above $45,000 are imported cars! A recent article in the WSJ reported that Toyota/Lexus was very disappointed with the performance of Lexus in Japan---where they thought there would be no problem selling the car---but it ends up competing against foreign cars. At that price, Japanese (like American consumers) want cache and exclusivity, so they turn to products they can't get in Japan. Even Rolls-Royce sold more than 50 cars in Japan last year. There is also the issue of RHD, which Mercedes, BMW, Astons/Jaguar, Bentley & Rolls-Royce all provide, and is necessary in Japan as they drive on the left. Cadillac has only recently started built some of its models with RHD (as Chrysler is also doing in Europe.) So that is one more reason why Cadillac sales in Japan can be considered successful: the Japanese have the inconvenience of driving a LHD car in a RHD world. Thus Cadillac is inching along. (Better than the 10 Buicks or 14 Mustangs sold there...!) Toyota, after-all, sold its first TWO cars in L.A. in 1957! And they thought that was a "success" (when 'Made-in-Japan' meant it was cheezy cr-p) The revamped CTS made for the Chinese market has been accepted resoundingly and the KD plant where they are assembled can't build them fast enough, and demand is sharp for imported Cadillacs despite the staffering price on the Chinese Mainland (tariffs and taxes effectively doubling the price.) "Standard of the World" best refers to the famous 'Penalty of Leadership" ad written by McManus for Cadillac in January 1915 and used by Cadillac Motors as a talisman for the brand. Having won the Dewar Trophy twice in its ascendant stage (for interchangeability of parts built to 1/10,000" tolerances, and the Kettering self starter) Cadillac was persuing Packard, and left no stone unturned in persuit of engineering and quality. Not just an ad slogan, Cadillac began to set the tone in the industry, especially when it introduced V12 and V16 engines in December 1929. Spurring both Packard and Rolls-Royce to build their own along with Lincoln among others. Cadillac became noted for many "firsts" in the industry (which Packard was also proud of and competing with Cadillac to maintain) such as Automatic Transmissions (in luxury markets, though also available on Oldsmobile in 1939) among other features. Just as "excellence was expected" at Porsche, and "engineering supremacy" is demanded at Mercedes, "Standard of the World" meant the latest in engineering/performance and/or convenience features blended with excellent build quality. What is means, at the end of the day, is that the brand becomes a benchmark against which all others are automatically compared. That was the point of "Penalty of Leadership" by McManus. It is what Cadillac must regain again. At least they are trying. DouglasR (Sources: Automotive News Market Data Book 2006)
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Replying to: mediapusher (Jan 13, 2007 11:29 am) This isn't about cars, it's about Swiss watches! Let me know what you think: (quoted text) "Swiss made" embodies a concept of quality that has been forged over the years. It includes the technical quality of watches (accuracy, reliability, water-resistance and shock-resistance), as well as their aesthetic quality (elegance and originality of design). It covers both traditional manufacturing and new technologies (micro-electronics). The Swiss are not the only watchmakers to manufacture high-quality timepieces and are consequently faced with strong competition. However, thanks to their unique infrastructure and to their know-how and spirit of innovation, they have succeeded in maintaining their leading position. The intrinsic value of the "Swiss made" label, therefore, is the result of considerable efforts on the part of watchmaking companies, who are ultimately responsible for maintaining its reputation. While prestigious brand names have thrived, they have never relegated the "Swiss made" label to a secondary place. The brand names and "Swiss made" have always worked together in an alliance that provides the consumer with the best of guarantees. " source: http://www.fhs.ch/en/swissm.php |
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Replying to: Mr_Shiftright (Jan 13, 2007 1:07 pm) It would be interesting to compare the management style of a long time Swiss watch maker vs GM and Cadillac. Has Cadillac division been forced to make many compromises in research, engineering, materials, etc for the overall goals of GM? If Cadillac were staffed with top notch people of all disciplines and then split off from GM, would it have a better chance of meeting/beating the best in the world? Many companies have split off a division through the years to enable the newly formed company to flourish and prosper. |
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Replying to: mediapusher (Jan 13, 2007 7:19 am) Well people immediately forget the problems and mistakes of the imports, so its not a stretch to forget about a car that was last built some 14 years ago. Cheap interior in a car like the Cadillac CTS sends a very insulting message to a potential buyer that has money. Then it must also send the same message to the imports that don't have a much better interior.
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Replying to: mediapusher (Jan 13, 2007 7:28 am) I'll explain it to you, you are a GM basher, The only reason to bring up a car that hasn't been in production for 14 years is so that you can continue to bash GM. Is that simple enough for you? I have plenty of today for you. Well no one is forcing you to read or respond to my posts. But somehow I think I struck a nerve.
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Replying to: Mr_Shiftright (Jan 13, 2007 1:07 pm)
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As XR2 says, Cadillac and for that matter GM did its best when the divisions had control of the product. Roger Smith destroyed all of that, and the establishment of GMAD did not help the independence of the divisions. As John Delorean once said (of the Vega): "We can't put a not in the glovebox saying, 'We didn't build it GMAD did'..." Despite his later misfortunes in Dunmurray, JZD was right...and Alfred Sloan knew as well that the products had to be left to the divisions. Of course today it seems an impossibility to go back to that system given global requirements and platform sharing. But the overall tasking and design could be left to renascent divisions. Then....anything might be possible. Just look what has happened at Ford Motor to see the opposite effect. DouglasR |
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Replying to: snakeweasel (Jan 13, 2007 3:20 pm) The article talks about the "perception" of quality and the buyer's "trust" in the name or product. I guess we would call it brand equity. Obviously the Swiss have built this up while others have let it go. I don't know if you remember when German cameras were considered the best in the world. Same deal. Of course it doesn't help your product to declare war on the world, but....  I think exploring the notion of "quality" is quite interesting.... |
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