A decision by Cadillac that has been long overdue will finally come to fruition as the American luxury car manufacturer will no longer be in the livery market. This comes after reports of the XTS’s lifecycle coming to an end, as this car was to attract the traditional Cadillac buyer. With sales still down, even after some exciting changes and announcements of new models, Cadillac needs to and is in the process of changing the perception the brand has had for many years, which is cars that are geared towards the older, affluent American consumer. By getting out of the livery market, this is one step in the right direction.
Seeing Cadillac’s in funeral processions gives the brand a bad image, especially in the eyes of the younger generations. How can the American automaker compete with their German rivals when 20 and 30 year olds are more interested and attracted to Audi, BMW, and Mercedes Benz? This has been the problem for Cadillac for many years, and by also being a part of GM and having their name thrown into the fire with all the recalls surely hasn’t helped. Since it doesn’t appear Cadillac is leaving GM anytime soon, now is the right time to take on the problems that they can control, and that’s to change the brand’s image entirely. By exiting the livery market and going full throttle into luxury and performance, the American luxury brand can once again compete against other luxury juggernauts.
The new Cadillac ATS-V got a warm reception when it was unveiled, so they need to take advantage and ride the momentum of positive vibes. It’s going to take a while for the changes to take full effect as consumers are not often quick to change perceptions towards brands, but if Cadillac can continue making bold moves and offering quality, luxury, and performance the car buyer wants, we could see a revival in sales.
The one real question at the end of the day however, is will consumers have a positive reaction to Cadillac’s desire to sell RWD cars? That’s still a question that’s up for debate as almost every car manufacturer has either focused on front-wheel drive, 4WD, or AWD drivetrains. Surely Cadillac will still offer 4WD/AWD, but they’re creating a small hurdle for themselves if they do intend on moving forward with plans to manufacture RWD cars, since the average consumer has been fully exposed to AWD capabilities by most auto brands.