The Colonel just joined us for a coffee, and since the latest price revelation on Cadillac we are anxious to have The Colonel share his thoughts. Lets get going.
Q: Colonel, you look prepared and aggressive this morning.
A: Thanks guys, its my usual persona, perhaps a little too aggressive.
Q: Cadillacs were "The Standard of the World" at one time.
A: That was a few generations ago, when I was a kid a Cadillac was the standard of the world.
Q: What happened?
A: I had an epiphany in the mid 1980's when Mercedes-Benz launched the 300E and Cadillac launched the Cimarron. One car became a world class benchmark, the other became the subject of jokes.
Q: Anything else?
A: In the same time frame or a few years earlier, the old folks of that time coming out of the recession of the early 1980's were trading in their Cadillacs in droves for German cars.
Q: At that time not only were they losing existing customers, they did not have a product to attract new customers.
A: Precisely, here was Cadillac pounding itself into the ground.
Q: Today Cadillac has a good product.
A: In 2014 we can say that most Cadillacs are phenomenal cars, they are literally world class.
Q: That good?
A: Absolutely, you don't expect it, but they are that good, if not better.
Q: You are saying that anyone that did not get close to a Cadillac in a while if they would experience an ATS or a CTS would be totally impressed with the cars.
A: Yes, they would even wonder why it took them so long to catch on...that they are good cars.
Q: Such good cars and their sales are sporadic.
A: Isn't that a challenge, good cars and not selling enough of them to secure a position in the segments.
Q: The SRX does reasonably well in Canada?
A: Yes...its getting old since the resouces were placed on the sedans.
Q: What is the problem?
A: Simple, PRICE.
Q: Are you implying that they are too much money?
A: At times its bewildering to watch GM deploy their pricing strategies, and the market conveying a blunt sledgehammer message to GM. Its the same with Cadillac, its a clear message from the market.
Q: How about the Cadillac leadership which has gone through a revolving door of late.
A: That did not help, and this latest leadership is not helping either reinforcing the surrent pricing strategy.
Q: You had misgivings about this latest leadership move.
A: Absolutely, huge doubts, and now its totally scary. Cadillac just told their competition that they are going to sit on the sidelines for the next decade until the market comes to them.
Q: Its the story of superb cars with a flawed selling strategy, and now encouraging its competition.
A: Its scary in its simplicity.