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2005 STS Targets


Bruce Nunnally

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According to this Detroit Free Press article on the 2005 STS:

http://www.freep.com/money/autonews/caddy15_20040115.htm

Caddy executives hope half of STS buyers will be outside the GM family, a tough feat considering that most foreign drivers stay loyal to their brand.

"We've got to take share from our rivals," said Jay Spenchian, marketing director of global products for Cadillac. "People are very satisfied with their vehicles. It's going to be a challenge for us to get people to move over."

Prices for the STS will start in the high $30,000 range and reach the high $50,000s. GM hopes to sell about 30,000 a year

So perhaps the CTS will run from $32K-49K, and the STS-6 from $39K to the STS-8 range $59K,

with the CTS-V at $50K and the STS-V at ?? $65K, then the XLR at $72K for a complete range from $32K to $72K? Of course the Deville, Escalade, and SRX are in there too.

What is the capacity of the new Lansing facility? I thought the CTS line maxed out last year, and now with it pumping out CTS's and SRX's, is 30K also the maximum number of STS's that CAN be made?

Bruce

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Unfortunately, Lexus and BMW owners aren't going to dump their cars for Caddy's overnight. It took Toyota more than 30 years to get where they are today. Toyota's were first sold in the U.S. in 1957. Their first car, the Toyopet, was inferior to the U.S. models. However, by the '70s the quality was beginning to meet that of the U.S. car makers, but they did begin to overtake the domestics in sales until the late '90's. (Toyota currently outsells DaimlerChrysler, and is rapidly catching up to Ford) Even if GM manages to build better cars than the imports, it will be several years until the mainstream consumer changes his/her mind about domestic cars. In my opinion, GM cars are no worse than anybody else's, but it will take time to change perception. Many people buy cars for vanity reasons, and they believe that Japanese car are "better" than domestics. This attitude has to change for GM to succeed. GM has a long road ahead of it.

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