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BusinessWeek: If Cadillac Keeps Growing Like This


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If Cadillac Keeps Growing Like This, It'll Be America's Bestselling Luxury Car

This has been a pretty good year to sell luxury cars in North America. An improving economy and cheap financing lured trade-up buyers and convinced affluent drivers to freshen their fleets. And while Daimler’s (DAI:GR) Mercedes is in position to finish the year as the bestselling high-end brand, it’s not hard to argue that Cadillac (GM) had the better year.

If we look at total vehicles sold in North America in 2013 by month, Cadillac is a fairly distant fourth place, behind Toyota’s (TM) Lexus brand:

Read more: http://www.businessweek.com/articles/2013-12-24/if-cadillac-keeps-growing-like-this-itll-be-the-best-selling-luxury-car-in-america

Bruce

2016 Cadillac ATS-V gray/black

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Mercedes is maintaining sales growth by selling more less-expensive cars. Mercedes and BMW use only one marque for a fairly broad line of cars over a wide price range.

My view is that if the luxury car market segment was fully acquainted with all of the offerings, Cadillac would dominate simply because the cars are better for most people, even with the fairly limited number of models.

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The important part of the story should be for Cadillac to continue to produce great product; sales should take care of themselves (then). Being number one (in sales) is not always the best place to be. Some other more important (business factors) need to be considered; sustainability, residual value and profit per automobile come to mind. Cadillac needs to build (and maintain) for the future so the decline of the 80's and 90's not be repeated.

Cadillac's resurgence has been spearheaded by the "true believers" at GM (Mark Reuss and Ed Welburn) come to mind; may they continue their quest for excellence.

Chuck

'17 XT5, '04 Bravada........but still lusting for that '69 Z-28

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