Cadillac and Lincoln Take Another Beating

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By Douglas A. McIntyre Published
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The promised turnaround of General Motors Co.’s (NYSE: GM) Cadillac and Ford Motor Co.’s (NYSE: F) Lincoln have to be years away, as managements have hinted. The process is off to a poor start. Lincoln sales dropped 7.5% in February to 6,164, and Cadillac sales fell 12.6% to 11,739. It is a guessing game whether the two huge American car companies will soldier on as they try to get an even modest part of the luxury market.

The news was actually worse than that. Lincoln avoided a slaughter because of the sales of its MKC, which reached 1,558. Since the model was not for sale last year, for February 2014 Ford gets to make a comparison to zero. On the plus side as well, if it can be called that, Lincoln’s beast of a sport utility vehicle (SUV), the Navigator, sold 862 units, up from 440 in the same month last year. Aside from that, Lincoln still has a model line that is disintegrating. Unimaginably, Lincoln sales could drop to as low as 5,000 a month.

The only reason Cadillac’s sales decline in February made a bigger thud than Lincoln’s is because they had further to fall, even if by only a few thousand units. The patterns the two luxury brands had were similar. Cadillac’s Herculean SUV, the Escalade, has model sales of 1,489, up 91.9%. Sales of the Escalade ESV rose 78.9% to 888. The best-selling Cadillac, the SRX, posted a unit decrease of 24.7% to 3,809.

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As an aside, for those keeping score, Mercedes sold 25,291 vehicles last month, up 5.2%. BMW sold 25,201, up 14.5%, and Audi sold 11,455, up 5.3%.

The Cadillac brand was founded in 1902 and Lincoln in 1917. It is never too late to throw in the towel. As GM discovered with Pontiac and Oldsmobile just a few years ago, not every brand has an infinite lifespan.

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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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