Cadillac to Challenge Best German Performance Cars, Again

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By Douglas A. McIntyre Published
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General Motors Co.’s (NYSE: GM) Cadillac division has been bested year after year in sales, compared to its larger Germany rivals, with its new models receiving modest regard from most auto experts. Cadillac management wants to reverse that with an updated line of ultra-performance cars. Most will come out this year and next. If their sales do not take hold, Cadillac’s best chance for a turnaround will be battered.

Cadillac’s most recent effort is its ATS-V, which will be available in a 2016 model. The public relations around its release get ratcheted up because of its introduction at the L.A. Auto Show. The model follows the CTS-V super-car, which received rave reviews three years ago but was too powerful for most drivers to handle, and that throttled sales. In an attempt to boost sales, Cadillac released a more cautiously designed car, the CTS Vsport. It is not really a high-performance car at all. It is, however, a slightly more powerful version of standard Cadillac models, which likely leaves potential buyers confused.

ALSO READ: BMW Stomps Mercedes in October

The ATS-V may suffer the same fate as its CTS-V stable mate — too fast and too hard to drive. However, ultra-performance cars are often released at car shows to burnish a brand. With sales off 4.4% in the first 10 months to 141,452, Cadillac needs the burnishing.

One challenge Cadillac may never be able to overcome is that BMW, Audi and Mercedes are adroit at releasing super-cars of their own at car shows. Based on information from the L.A. Auto Show, Mercedes, BMW and Audi will all offer new models or concept cars this year.

The Germans have more forms of leverage when they release new models. First among these are their total sales, followed by the growth of those. Mercedes sales were up 7.5% in the first 10 months of the year to 281,728. BMW’s were up 11.3% to 267,193 for the same period. Audi’s were higher by 14.7% to 146,133.

Cadillac has a hot new car to release at L.A. Trouble is, it does not have enough new cars to introduce, compared to its rivals, and its competition continue to outpace it by miles in terms of sales.

ALSO READ: Can GM Be the Next Chrysler?

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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