At the J.D. Power and Associates Automotive Marketing Round-table in Las Vegas last week, Cadillac gave some idea on future pricing.
Cadillac’s head of North American marketing, Don Butler mentioned that Cadillac’s direction in the coming years will drive them to match not only the size and features of their competition, but ultimately their prices as well.
The prices of current Cadillac models undercut the competition in a classic move to gain market share – but in the eyes of a luxury buyer, this strategy will hurt Cadillac’s image with those same customers. Less expensive equals less desirable, less lust-worthy in the eyes of image conscious buyers.
Yep, Cadillac may decide to ask more money for their cars to make them seem more exclusive.
So, look for future Cadillacs to creep up in price to come closer to their competitors, especially as Cadillac’s image and competitiveness improve.
The extra profit margins certainly won’t hurt the company either.