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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: Mr_Shiftright (Jan 13, 2007 10:58 pm) The hip-pop culture only helped Cadillac or maybe MB. I don't really see it has a lot to do with other manufactures. As matter of fact, even though maybe Caddy got some sales through this hip-pop image thingy but it might also loss some conservative customers in the process. I personally like BMW & Lexus' subtle image more than Cadillac's "bang, in your face" one. could Lexus or Mercedes fall from grace and Cadillac come out on top? Is it POSSIBLE? Yes, anything is possible. Is it PROBABLE? Not really, unless Lexus, MB and BMW decide to shoot themselves in the foot. Classic example is GM in 80s and early 90s. If GM didn't start putting out inferior products and provide terrible service I really don't see the imports could enjoy the success they have today. However, that's not saying Caddy couldn't gain market share. I think if it puts honest effort into its quality products then its sales number would definitely go up. But to dethrone MB and Lexus? I think that's too much of a stretch for right now. I say one step at a time, Caddy. Can you see some other car company seizing a spot in the luxury car field like Lexus did in 1990 Yes I can. Watch out for Hyundai to establish a new luxury brand and undercut Lexus. All Hyundai has to do is to have enough cash (which they are working on right now), seize the right moment and borrow Lexus' strategy. With the LS pushing $65K - $70K range, I see deja vu all over again for Hyundai to undercut Lexus with it own version of the 1990 LS400. Does dealer service and dealer image have anything to do nameplate prestige or is mostly all about product? I think dealer service is very important to a brand and this is especially true with the luxury brands. However I don't think it should be the number one priority for any manufacture; to put out good quality products still remain on top of "to do list". I don't know about other people but as for me, I can tolerate not-so-satisfactory dealer service if I am happy with the car. On the other hand I could care less about the dealer service if the car is either horrible or doesn't satisfy me. |
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Why don't we look at the Lexus story in 1990 and figure out how they did that? Now here's a company with a new nameplate entering a very mature and presumably saturated luxury car market in the USA practically owned by Mercedes on the high end and BMW in the middle. Seems like a tall order. How'd they pull that off?
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Replying to: Mr_Shiftright (Jan 14, 2007 8:30 am) MBs were grossly overpriced (and the W140 was even more overpriced upon introduction in 92), and had a large clientele that didn't care for any driving dynamics these cars might have had...they just wanted euro-plush and cachet. MBs of the time were reliable, but did require extensive maintenance as well. Lexus shows up with something that offers much of what a 70K MB offered...for 40K. It was even a virtual copy of the MB in exterior design. It was very refined, had a catchy name, and gave all the tactile/plush feel many period MB customers wanted. It also was less expensive to keep around. That was a winning combo. It was an S class for E class money. It's almost like Lexus knew that the W140 was going to be very expensive, as well. By then (1992) a LS was what, 45K...and a W140 ran 80-90K for V8 cars. That helped them too, they could undercut that car even more. And MB made the car very complex, which led to maintenance issues, and that helped Lexus again. They seemed to know what to do to make MB panic.
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Replying to: mediapusher (Jan 13, 2007 7:19 am)
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Replying to: cooterbfd (Jan 13, 2007 7:53 am)
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Replying to: lemko (Jan 14, 2007 9:27 am) |
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Replying to: lemko (Jan 14, 2007 9:27 am) So again, let's stick with apples to apples okay? I am interesting to see the comparison between UAW workers' wages and import workers'. Does anyone know where I can find that information?
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Replying to: fintail (Jan 14, 2007 9:11 am) What were the techniques used? GM needs to separate Cadillac from the rest of the company in the public's perception, not just in name of the line of cars. |
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Replying to: imidazol97 (Jan 14, 2007 10:23 am) I'm wondering...hmmm...maybe GM should start with an entire new name for their luxury line? |
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Replying to: lemko (Jan 14, 2007 9:24 am) However I think that if Hyundai keeps improving they could give Toyota a run for its money. I think the reason why people are a bit more forgiving on Hyundai is the HUGE warranty and the fact that they seem to have a reputation for not haggling over it. Both the domestics and Toyota have a reputation for giving folks a run around over the warranty.
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