Dealers Want to Give Incentive, but HQ Says "No" - Cadillac XT5 Forum
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post #1 of 15 (permalink) Old 07-31-2015, 12:40 PM Thread Starter
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Dealers Want to Give Incentive, but HQ Says "No"

Cadillac wishes that it sold more cars than it currently does. I guess people are buying BMWs instead of Cadillacs given that they are both around the same price. Dealers want to throw some cash and rebates at buyers to help remedy the situation, but Cadillac CEO Johan de Nysschen says, "No."

From Bloomberg:

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One of the key points of contention between some dealers and de Nysschen is that the CTS has gotten much more expensive, said John Bruno, general manager of Potamkin Cadillac in Manhattan. A few years ago customers could lease the car, which is the size of a BMW 5 Series, for less than $400 a month. Those people are coming back and finding CTS leases now run more than $500 a month. Dealers complain that getting people into a smaller ATS is difficult, he said, and want incentives to make the cars more affordable.
I guess de Nysschen thinks that he wants to play the long game. Cheapen the cars and you cheapen the brand. That sounds right, but I'm not sure how it will play out in practice.



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post #2 of 15 (permalink) Old 08-01-2015, 10:44 PM
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they're delusional if they think BMW and Merc dont incentivize...



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post #3 of 15 (permalink) Old 08-06-2015, 06:26 PM Thread Starter
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they're delusional if they think BMW and Merc dont incentivize...
I don't think that is what they are saying. I think that they are saying that don't want to use incentives more than the Germans do. They don't want to have to discount their vehicles to keep up. That's how I understand it at least.



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post #4 of 15 (permalink) Old 08-08-2015, 11:24 PM
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During a time when they're still trying to get more volume products in, I think they should, they need to be aggressive to reel in people.
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post #5 of 15 (permalink) Old 08-15-2015, 06:10 PM
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Maybe not cash rebates as incentives but have a few more of the options come standard for free? If they want to compete with similar models, something will have to make them stand out.
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post #6 of 15 (permalink) Old 08-18-2015, 03:47 PM Thread Starter
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I mean I'm sure that incentives or more standard features would work, but here is what I think Cadillac is thinking (as if it is some type of entity that actually thinks, lol). Cadillac wants to attract people to their vehicles with great design, tech, performance, etc... They want to focus on the content of their vehicles. The thought is that they want people to choose a Cadillac because they like it better than a BMW, not because it is comparable to a BMW, but not as expensive. They don't want to be in this second tier for the luxury market, and they think that by giving incentives at all, that is what will happen.



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post #7 of 15 (permalink) Old 08-19-2015, 05:26 PM
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Thanks for clarifying that for me. Not sure if this will work out for them as there's a push by other car manufacturers to come out with cheaper luxury models that people are snatching up.
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post #8 of 15 (permalink) Old 08-20-2015, 03:48 PM
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Originally Posted by Cruizin View Post
Thanks for clarifying that for me. Not sure if this will work out for them as there's a push by other car manufacturers to come out with cheaper luxury models that people are snatching up.
But with that comes cheap things about the vehicle so it really comes down to analyzing them and doing an apples to apples comparison.
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post #9 of 15 (permalink) Old 08-30-2015, 10:19 PM
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I don't think that is what they are saying. I think that they are saying that don't want to use incentives more than the Germans do. They don't want to have to discount their vehicles to keep up. That's how I understand it at least.
then you should go look how much the germans incentivize



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post #10 of 15 (permalink) Old 09-06-2015, 11:06 PM
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At the end of the day incentives will give them the push they need although it will be a loss they'll have to absorb depending on how desperate they are but the ROI on that initial effort could pay back big time.
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