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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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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. You'll note that GM isn't sitting on its heels either. The same comparison could be made between the Lucerne(with the V8 of course) and the Lexus and Infinity models. 80-90% of the same car for a huge wad less. And it's actually selling quite well. So are most Cadillac models(2006 CTSs were sold out in about a month once the 2007s came out) You can still find 2006 Mercury and Lincolns on the lot. The CTS was(and the enw one moreso) wasn't a BMW or Mercedes killer. It was an attempt at making a car simmilar to their current offereings for a lot less money. And GM sold a ton of them - all they could make in fact(virtually zero fleet sales). I think Buick/Cadillac is going to be fine. They are pulling Hyundai's trick and being a major thorn in the competition's side. (and way better in terms of reliability/cost to own) Just a tune-up on a 5 series or E class can run you several months worth of payments, then there's the A/C if it goes out and then the brakes and tires, and...(non-warranty covered items for the most part). Out of warranty the bills are so high that you are always better off buying the extended warranty.(which is a unique situation in the industry) And GM... Chevrolet repair costs for near Lexus quality. P.S. The GM waranty stays in full effect upon transfer. Hyundai chops their in half for the second owner. The 100K warranty on the drivetrain is actually helping sales a lot. 100K waranty on a Cadillac... well, that's the entire loan period and then some. That lowers your costs considerably.
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Replying to: plekto (Jan 14, 2007 11:21 am) |
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Note I said "near Lexus quality". 85-90% the reliability for a huge chunk of change less, combined with a 100K warranty. That's Hyundai's strategy and it's working very well for GM now. |
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Replying to: plekto (Jan 14, 2007 11:21 am) However, I see Lucerne as a formidable opponent to models such as Toyota Avalon, Nissan Maxima and Hyundai Azera.
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Replying to: imidazol97 (Jan 14, 2007 10:23 am) That's an area where GM sorely needs work - marketing and promotion.
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Replying to: fintail (Jan 14, 2007 12:09 pm) Really? Silverado's "This is our country" seems pretty good to me...
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Replying to: louiswei (Jan 14, 2007 12:15 pm) |
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Replying to: louiswei (Jan 14, 2007 12:04 pm) However, I see Lucerne as a formidable opponent to models such as Toyota Avalon, Nissan Maxima and Hyundai Azera. You hit the sweet spot here - exactly right.... |
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The marketing in the commercials and overall advertising needs to be improved from my viewpoint. The precision of hitting an exact unfulfilled market point with both product and with advertising (image) is difficult. The concept from some is that GM needs to have something to directly compete with a certain automobile that they themselves think is great from another company. But GM needs to do what was successful for the 3 imports in the 80s and 90s: fill a niche that's not being satisfied and make an image. GM will never make someone happy who expects them to compete with the ABC company's sporty driver, high maintenance racemobile; but GM can make a car to slice off a part of that market that's not filled with people total enamoured of that particular car. That's what Lexus did. I.e., build a Civic price and demographic competitor but don't try to be a Civic because you'll never make that Civic-preferring customer happy. But then you have to keep the sales you do make happy and advertising for image needs to make them feel they're owning a quality product. The Cadillac (and Buick) part needs to be Lexused in image. How many people believe Lexus is a Toyota? Question: Is Kia still connected to GM?
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Replying to: imidazol97 (Jan 14, 2007 1:01 pm) Kia is under Hyundai group and Daewoo is part of GM. I don't know if Kia was ever owned by GM but you could have mistaken Kia with Daewoo. BTW, Daewoo just took the number 2 selling spot in Korea from Kia last year (2006). |
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