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Bruce Nunnally is an independent Blogger who writes Cadillac Conversations on all things Cadillac. Connect with Bruce on Google+

1930 Austin Seven Chummy Tourer

My son and I went to Arkansas to pick up his 1930 Austin Seven Tourer.

 

Made a really long day, rain both ways, and during loading, but the Austin is here in Texas.

At the Center of the Cadillac Brand Experience

WASHINGTON, D.C. – As part of Cadillac’s overall mission to expand and elevate within the premium automotive sector, the brand today outlined its strategy to upgrade its U.S. dealer network.

Speaking at both the Washington, D.C. Auto Show today, and this weekend’s annual National Auto Dealers Association convention in San Francisco, Cadillac President Johan de Nysschen will outline how the brand will target enhancements in the customer experience.

The company’s philosophy is to place customers at the center of the brand experience. New concepts for facilities, network development, high-technology showroom systems and increased financial strength are key aspects of the plan.

“A strong, financially healthy dealer organization is an essential element of Cadillac’s expansion plans,” de Nysschen said. “The stronger our dealers are, the better our service quality will be. Cadillac is on a journey back to the pinnacle of premium brands, and dealers will contribute every step of the way.”

Cadillac’s current U.S. network consists of more than 900 stores, giving the brand a substantial advantage in geographic coverage against its import luxury competitors.

“Our comprehensive market coverage supports customer convenience, especially in access to service,” said de Nysschen. “Our task is to take further advantage of our network.”

Cadillac’s U.S. network today features a core of approximately 200 flagship, stand-alone dealerships. Its concept going forward is that core of roughly 200 flagship stores will be complimented by 700 smaller, boutique locations. The boutique concept would feature exclusive Cadillac consumer touch points, highly trained sales and service staff and luxury amenities.

“Our recently announced $12 billion investment in product must be accompanied by corresponding upgrades to the customer experience,” de Nysschen said. “For all dealers, including multi-brand outlets, we should strive to create a premium showroom atmosphere and the sophisticated brand experience that luxury consumers expect.”

de Nysschen outlined a plan to bring emerging technology to the showroom experience. “Virtual Showroom” systems could enable shoppers to quickly configure and envision multiple models, color and interior choices using interactive digital displays, or potentially even holograms.

He said Cadillac will develop new systems to incentivize and support customer satisfaction performance and dealer compensation. New standards for compensation will be built with more precise alignment of local sales and market potential for each dealer, to better ensure efficient investment.

Growth in dealer profitability will be supported by financial incentives to reward dealer investments into facilities and high achievement in customer satisfaction.

The company has no plans to reduce the number of U.S. dealers.

Cadillac dealers often rank at or near the top of influential customer satisfaction surveys, including J.D. Power’s Customer Service Champions designation of the best brands across major industries.

Cadillac Dec14 Sales Grew, except in the USA, or Europe

Escalade carried the only good news story for Cadillac sales in December, well up from 2013. ATS sales continued to drag, even eclipsed by more expensive CTS sales and barely edging out the XTS.  The perennial sales leader SRX was strong but well below last year.

ELR did edge up over 100 units for the month, so that’s something, and averaged over 100 units a month for the year.

  December (Calendar Year-to-Date)
January – December
  2014 2013 %Change Volume   2014 2013 %Change Volume
ATS 2,465 3,887 -36.6   29,890 38,319 -22.0
CTS 2,652 3,217 -17.6   31,115 32,343 -3.8
DTS 0 0 ***.*   0 19 ***.*
ELR 118 6 ***.*   1,310 6 ***.*
Escalade 2,281 1,470 55.2   19,482 12,592 54.7
Escalade ESV 1,459 775 88.3   10,987 7,950 38.2
Escalade EXT 0 66 ***.*   53 1,972 -97.3
STS 0 0 ***.*   0 7 ***.*
SRX 4,899 6,074 -19.3   53,578 56,776 -5.6
XTS 2,276 2,670 -14.8   24,335 32,559 -25.3
Cadillac Total* 16,150 18,165 -11.1   170,750 182,543 -6.5

Sales Release:

Cadillac:

  • Escalade deliveries increased 62 percent.
  • Sales of the CTS sedan increased 4 percent in December.
  • DETROIT – Cadillac’s global expansion continued in 2014 with the brand recording a 5 percent sales increase over the prior year. Cadillac sold 263,697 vehicles worldwide in the 2014 calendar year.

    Cadillac sales in China grew 47 percent, driven by growth in the ATS and XTS sedans. Beginning production in late 2013, the ATS-L sold 13,276 units. The larger XTS sedan was up 59 percent year over year to 32,559 units. Cadillac sold more than 73,000 vehicles in China in 2014.

    Cadillac sales in Canada grew 10 percent, driven by increases for the SRX crossover and ATS sport sedan.  Other countries featuring sharp growth rates included Mexico (up 17 percent), South Korea (up 118 percent) and Israel (up 73 percent).

    “Cadillac is both expanding and elevating globally,” said President Johan de Nysschen. “In 2015, we will take many further steps, such as this year’s introduction of all-new high performance V-Series models and the top-of-the-range CT6 to advance further globally.”

    In the U.S., Cadillac’s average transaction price climbed to more than $47,000, higher than BMW and Lexus. Also, 74 percent of ATS buyers in 2014 were new to the brand, not trading in a Cadillac vehicle.

    Market CY 2014 CY 2013 YOY % Change
    US 170,750 182,549 (6.5)
    China 73,500 50,005 47.0
    Canada 10,538 9,608 9.7
    Middle East  4,265 4,191 1.8
    Europe/Russia 1,674 1,943 (13.8)
    Rest of World 2,970 2,443 21.6
    TOTAL 263,697 250,739 5.2