Tattered Cadillac Battered in New Quality Survey

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By Douglas A. McIntyre Published
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The effort by General Motors Co. (NYSE: GM) to revive its Cadillac luxury brand was set back again. Among the major luxury car brands, it received the worst score in the new J.D. Power 2015 U.S. Initial Quality Study. For buyers who rely on the survey, Cadillac has not overcome its image problem.

The results of the study are based on a simple methodology:

The 2015 U.S. Initial Quality Study is based on responses from more than 84,000 purchasers and lessees of new 2015 model-year vehicles surveyed after 90 days of ownership.

The outcome shows how many problems a nameplate (read brand) has per 100 cars sold. The average figure across all nameplates is 112. Porsche led with list with 80, and at the bottom of the list was Fiat at 161. Cadillac’s number was 122. That puts it behind Porsche, Jaguar, Infiniti, BMW, Lincoln, Toyota Motor Corp.’s (NYSE: TM) Lexus, Mercedes and Audi. Land Rover, which sells almost no cars or light trucks in America and therefore has nearly no market share, fell below Cadillac at 134.

Cadillac needs a few breaks and has gotten none. It sold 14,408 cars and light trucks in May, or down 1.9% from the same month a year ago. Sales for the first five months of 2015 were 67,384, down 1.2%. The brand would have done much worse, were it not for the good results for its SRX crossover.

ALSO READ: 7 Car Brands That Cost Less Than They Used To

The numbers are worse because of how market leaders BMW, Mercedes and Audi have done. For the first five months of the year, Mercedes sales have risen 10% to 148,014. BMW sales rose 7.3% to 136,447 in that time, and Audi sales were up 11.7% to 75,353. Cadillac management has acknowledged its success will be based on how close it can get to market leaders BMW and Mercedes.

And Cadillac cannot get there at all. It does not have the brand value. For every new model it produces, BMW and Mercedes add more. Cadillac has the image of being an old man’s car, not suitable for drivers who want more sporty cars.

GM has tried to revive the Cadillac brand several times. The newest effort has been a failure.

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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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