Cadillac has confirmed that the brand is planning to increase the prices of their vehicles in the coming years and this plan will most likely to happen.
According to a number of reliable sources, Cadillac’s plan of boosting the prices of its vehicles up was triggered by the rising cost of raw materials, vehicle components or the costs of labor involved in producing luxury vehicles. The planned increase was basically due to the brand’s intention to take its luxury credentials to a higher level and somehow match the prices of its rivals from Europe such as the Mercedes Benz and BMW.
In lieu of this particular plan, Don Butler who is the current vice president of Cadillac explained that there is great need for the brand to increase the prices of its vehicle so as to re-establish Cadillac’s status as a producer of luxury vehicles.
In a statement, Butler cited the Cadillac CTS as a good example of how the brand’s car models are priced way below its European rivals. According to Butler, the current base price of the CTS is about $8000 lower than its closest competitor which is the BMW 5-Series and this price difference could be considered as a great deal for luxury car shoppers who want to earn larger savings. However, by looking at the situation from the luxury market’s point of view, the lower base price of CTS could become a great issue since selling a luxury car at a very low price diminishes its value and this could also turn the CTS to a common vehicle rather than a luxurious one.
With this line of reasoning, Butler implied that raising the prices of Cadillac vehicles closer to that of its European rivals would dramatically change the public’s notion towards the models marketed by the brand. Thus, Cadillac’s image will also turn into a brand which is responsible for producing and selling “exclusive” cars for the buying population who is willing to spend large amounts of money just to own a luxury vehicle.
Although this move would possibly reduce Cadillac’s sales output, Butler hinted that he is quite optimistic that this would bring a number of sales benefits for the brand not only in terms of sales but also on its image as a luxury car producer as long as Cadillac would be able to retain the luxury elements that made it a popular brand in the US and in other markets where their vehicles are sold. Finally, Butler has provided an assurance that the base prices of most Cadillac vehicles will still be quite affordable compared to some of its European rivals.