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Cadillac Plans To Raise Prices & Prestige

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If you were hoping to land a great deal on a Cadillac, you might want to act sooner rather than later: according to an article in AutoNews, Cadillac is planning to boost prices in the coming years.

The increase isn't due to rising costs of labor, parts, raw materials, regulation, or other factors you might expect. No, the increase is purely meant to boost Cadillac's luxury credentials by making its lineup as pricey as European rivals from BWM and Mercedes-Benz.

As an example, Cadillac's vice president of marketing, Don Butler, cites the Cadillac CTS, which is currently priced $8,000 below its BMW rival, the 5-Series. To mass-market shoppers, that makes the CTS sound like a bargain, but to luxury consumers, the word "bargain" sounds a lot like "common". Butler suggests that the price difference between the two models will shrink in the coming years.

In marketing, it's a given that for something to be luxurious, it has to be exclusive. Call it the "Emperor's New Clothes" effect: even when a product's deluxe touches are minimal or ludicrous -- like those of a diamond-encrusted cell phone -- charging a premium price makes things less attainable and, simultaneously, more desirable.

So, as long as Cadillacs retain their luxury elements, upping base prices could help draw in a few status-conscious shoppers who might otherwise turn to competing high-end brands. (And that, in turn, could boost GM's profits, which is no small matter.)

The trick, of course, is finding the sweet spot--the balance between exclusive price and premium quality that will allow Cadillac sales to grow. To that end, Butler says that Cadillacs will always remain slightly more affordable than their European counterparts. 

How do you think Cadillac stacks up against other luxury brands? How high do you think Cadillac's prices can go while remaining competitive? Drop us a line, or leave a note in the comments below.

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Comments (7)
  1. What a great plan, don't improve the cars to better compete when it's rivals, just raise the price and hope you can fool your customers into thinking their car is better than it really is! How stupid is Don Butler? Maybe he should go into politics....moron!
     
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  2. Perhaps you have not read any of the reviews of the ATS?
     
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  3. "the Cadillac ATS, which is currently priced $8,000 below its BMW rival, the 5-Series."

    Uh... typo. The ATS does not compete with the 5-Series, the CTS does.
     
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  4. Thanks for catching that. (One day, luxury automakers will shift to common names like their mass-market cousins.) Corrected!
     
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  5. These are the same idiots who ran the company into the ground and forced America to bail them out!
     
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  6. Cadillac's assumption that the pricing will become a draw, well simply put I can buy a Jag XF well equipped that beats the u know what out of the CADILLAC in terms of quality,and presence. I've noticed even the revered CTS is looking cheaper these days Cadillac you have to deserve the price. It will work in Canada though as they've been gouging us forever on the price, and we take it !!
     
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  7. Your a f*cking retard!! To get a 550hp jag will cost you $100,000 and to get a 556hp cadi will only cost you $65,000 and is even way faster n better handling then that pile!! But jags are still nice just not anywhere comparable in terms of value for your $
     
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