Cadillac adds features to entry models after sales drop
Facing falling US sales and buyer resistance to higher prices, Cadillac is adding features like heated seats to lower-trim models and reviewing its marketing approach for 2015.
Cadillac is responding to an 18% drop in August US sales by adding more features to its entry-level models, after buyers pushed back against recent price increases. The move comes as the brand’s redesigned CTS sedan saw sales fall 35% in August, following a 29% decline in July.
Uwe Ellinghaus, Cadillac’s chief marketing officer, acknowledged that the brand may have been too aggressive with its pricing strategy. He pointed to the luxury market’s growth, but said Cadillac was not capturing its share as hoped. Pricing, he said, was a key factor in this shortfall, especially among buyers who do not traditionally consider Cadillac.
Features to attract new buyers
To address buyer resistance, Cadillac is preparing to add features such as heated seats to lower-specification models. Previously, such features were often available only as part of expensive premium packages. The company is also considering letting customers order certain options individually, rather than requiring the purchase of a full package. These changes are expected to roll out in the 2015 model year.
This approach mirrors moves by other premium brands, which have added equipment to base models or offered more flexible option selections to maintain their value proposition in a competitive market. For example, Jaguar added equipment to the XJ in 2009 without raising the price, and Volkswagen has bundled more features into its Passat Highline trim for the UK market.
Marketing shift and new models planned
Alongside product changes, Cadillac plans a major revision of its marketing strategy in the first quarter of 2015. The aim is to reach buyers who may not have previously considered the brand, especially as the luxury segment continues to expand globally.
Cadillac will also launch four new models in 2015, including a redesigned SRX SUV and a new flagship saloon. The brand has not confirmed which additional features will appear on the CTS or other models, but the focus will be on making the range more appealing without sacrificing the premium positioning that supports Cadillac’s pricing.
- Cadillac CTS: Facing sales decline after price increase.
- SRX SUV: Redesigned model coming in 2015.
- Flagship sedan: New model planned for launch next year.
Cadillac’s strategy reflects a wider trend in the premium sector, where brands are balancing higher prices with more standard equipment to retain buyers and protect margins. The effectiveness of Cadillac’s changes will become clearer as the 2015 models reach showrooms and the new marketing campaign rolls out.
