It would be hard to find a more vocal supporter of the Cadillac brand than me. I was greatly in favor of the massive investment Cadillac made to reinvent the brand in the late Nineties and early aughts.
The resulting products, the CTS sedan, the SRX crossover, even the low-volume XLR roadster, received excellent media reviews and were favorably compared with their German competitors. The following generations of V-series were exceptional values, outperforming just about any other sedan or coupe on the road. All was on track for America's luxury-car buyers to rightfully put Cadillac on their shopping lists.
Only, it stubbornly refused to happen. The enthusiast still bought the M5 ("I'd never stop explaining why I'm no longer driving a BMW") and the run-of-the-mill buyer, not given to discerning minute differences in brakes or handling, stayed with the first-tier German luxury brands as well. It's a choice that's safe. So, Cadillac became the "bargain" luxury brand, putting lots of cars into rental fleets and moving the rest with heavily subsidized leases. The resulting glut of nearly new Cadillacs—resold daily rental and two-year off-lease units—depressed used-car values, driving up lease cost and diminishing the brand. It was a road to nowhere.
Johan de Nysschen, Cadillac's new president, rightfully stopped these brand-damaging practices. It was a sound long-term move, but things remain quiet at Cadillac dealerships.
So, what can the problem be? First, we are witnessing what is probably a terminal trend away from cars to crossovers. And Cadillac only has one, the new XT5, which I predict will be Cadillac's number-one nameplate. Second, the marketing strategy continues in the failed "lifestyle" wet-dark-alley-in-some-dirty-city mode. Unshaven dudes glide about while "daring greatly." There is never a claim of product superiority; no reason to prefer it over other choices. Third, the design theme: I'm not saying it's bad, but it isn't resonating with the target market of wannabe upscale Americans who can barely budget a $350 lease payment. Lastly, the huge investment in a unique rear-wheel-drive architecture is not bearing fruit. Cadillac's best entry, the second-generation SRX and its successor, the XT5, are both front-wheel-drive-based, and nobody cares. Meanwhile, the Germans are softening their orthopedic ride and handling and finding ever-greater acceptance among buyers. Beating the Germans in vehicle dynamics has proved to be possible, but it's totally irrelevant. That isn't where the market is.
Can it all be fixed? Only Johan knows for sure. For now, the brand should be thankful for its accidental flagship, the all-conquering, no-excuses, nothing-else-comes-close Escalade.
Bob Lutz has been The Man at several car companies. Ask him about cars, the auto industry, or life in general.AskBob@roadandtrack.com
