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News: Why General Motors' Cadillac Needs More Than a New Ad Campaign

General News Post

Rob

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I found this article to be interesting, and I'm currently working on a followup story which I hope to release by the end of the week with my own view on the recent changes within the Cadillac brand.

I'm curious what others think?

-Rob
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Why General Motors' Cadillac Needs More Than a New Ad Campaign

By John Rosevear
The Motley Fool
December 9, 2014


For years, the "problem" with General Motors' (NYSE: GM ) Cadillac brand was simple and obvious: The cars weren't good enough.

Specifically, Cadillac's products weren't good enough to be taken seriously by luxury buyers who might have chosen Cadillacs decades ago but have since come to favor German luxury brands like BMW and Mercedes-Benz.

"Cadillac" used to be synonymous with top-tier luxury, "best-of-breed" products. But for a long time, its products couldn't back up that reputation, and the brand lost its appeal.

Recently, things have started to change. Cadillac's latest models, particularly the ATS and CTS sedans, are as good as Germany's best -- maybe even better in some ways.

So say the experts. But so far, the evidence shows that BMW, Audi, and Mercedes buyers aren't flocking to Cadillac's showrooms. Very few people seem to be cross-shopping the new Cadillacs against their German peers.

Meanwhile, Cadillac's new products are hugely improved, but their higher prices mean they're now too expensive for many of Cadillac's existing customers. Without enough new customers stepping in, the brand's U.S. sales are down almost 6% this year.

That leads us to GM's big challenge with Cadillac: Why aren't more BMW and Mercedes and Audi buyers interested in these new Cadillacs, and what can GM do about it?

Full Story: Why General Motors' Cadillac Needs More Than a New Ad Campaign (GM)
 

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