Cadillac Continues Repositioning Effort

At one time, Cadillac was considered the car that most American aspired to own. Poor build quality, budge engineering, and the Lexus nameplate conspired to change that perception. In the early 1990s, Cadillac started to regain that mantle with the launch of the Catera with the tagline, the Caddy that Zigs. It was a start.

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In the intervening years, Cadillac's reposting effort has zigged and zagged, reflecting both GM's fortunes as well as the health of the US auto market.

New Cadillac president Johan de Nysschen re-affirmed his commitment to this repositioning effort. He noted that it will take another 10 to 15 years with an anticipated sales decrease as the brand lets go of its traditional consumers and moves toward a new group.

Along with expected product redesigns, improved build quality, and better engineering, Cadillc buyers should expect to pay higher prices. All of these tactical decisions reflect a strategic direction to compete against German market offerings from Audi, BMW, and Mercedes.

Given the resource commitment by GM toward this action, the sales volume along with the change in the MDS quadrant needs to happen sooner rather than later.