Quote:
Originally Posted by FenwickHockey65
Well it is a Cadillac. The majority of the public shouldn't be able to afford one. That might sound snobby or elitist but it's the truth.
Escalade ATPs are already close to $100k. Despite that 2021 sales were up 65%.
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Hmmm ordinarily I would agree with this; However here are my thoughts.
1. The bread winner of General Motors (all of) happens to be Chevrolet. Chevrolet once stood for affordable transportation for the masses. In general its theme is still this way, but even Chevrolet has entries into the 80k, 90k and 100k markets. The company could not survive on Cadillac sales alone.
2. Cadillac's target market historically has been the upper middle class and the well to do. In Cadillac's hey day it was a market approach that worked. From the mid 80's to the present day, Cadillac no longer owns this genre, and the genre itself has become mixed with other variants. Other marquis have had to adjust their target market to include vehicles that are reachable to a broader market. Brands such as BMW, Mercedes, Porsche and a few others have introduced models that are somewhat reasonable in price.
3. To Cadillac's credit, the Escalade has proven to have been a success. It took the iron clad chassis of the Chevrolet Suburban, and added world class amenities to it. It took a little bit of time, but it solidly ousted the Lincoln Navigator to become the best recognized premium people hauler of its genre.
4. Amazing talents have been achieved by modest players. The high priced genre no longer is the most advanced or the best performing of the automobile market. Many of today's advancements can be had in everyday modest cars. Even many luxury appointments once held by higher priced cars can be found in many affordable vehicles.
The meaning of all of this is: Cadillac cannot rely solely on price exclusivity in order to survive. The name brand must come up with more "unique" ways to generate business and to compete with today's cars. So far this has proven to be a daunting challenge.