Costco Will Sell Cadillacs

By Douglas A. McIntyre Published Jan 5, 7:30AM EST

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Costco Will Sell Cadillacs — © Courtesy of Cadillac

Costco has a service that helps its members save money on cars. The latest nameplate to enter the program is Cadillac.
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General Motors, Cadillac’s owner, was the top car company in America based on sales in 2022, when its figure reached 2,274,088, up about 3%. Cadillac has not done so well. While its sales rose 12.9% last year, they only reached 134,726. That trails market leaders Mercedes, BMW and Lexus considerably. It needs programs like Costco to help. (See which cars have been completely redesigned for 2023.)
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The Costco Auto Program added the Cadillac Limited-Time Special. This includes the 2022 and 2023 Cadillac CT4, CT5, XT4, XT5 and XT6. Costco’s management said of the deal that between “Jan. 4 and Feb. 28, 2023, they can combine a $1,000 member-only incentive with all manufacturer incentives they qualify to receive.” Sales of the XT6 and XT5 fell last year. Sales of CT4 and CT5 jumped.
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It is hard to understand why Cadillac would use the Costco program. Perhaps it will help gain market share over its larger rivals. Any help Cadillac can get would be important.
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Cadillac has done so poorly over the past two decades that it will take a miracle for its sales to come anywhere close to the market leaders. It has too few models, among other things. Quality has been an issue. In the Consumer Reports “Which Car Brands Make the Best Vehicles” report, Cadillac ranked near the bottom.

Costco will help sell Cadillacs, but will there be many takers?

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.