Consumers Won’t Buy A $340,000 Cadillac

By Douglas McIntyre • August 25, 2024

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Cadillac is barely a luxury brand today. Its US sales have fallen behind BMW, Mercedes, Audi, and Lexus. It ranks 14th among 34 brands measured by Consumer Reports. BMW, Porsche, Lexus, Audi, and Acura ranked higher.

It is worth noting that Cadillac owners are among the oldest in the industry.

Luxury Car Mistake

Cadillac will launch its new 2024 Celestiq EV brand later this year. The base price for the vehicle is $340,000. Demand for the vehicle is likely to be poor at best. Perhaps its most attractive feature is hands free driving, which is not truly hands free at all.

The Celestiq also has a low drag, an expensive sunroof and is made of high priced materials.

Acura and Genesis

Cadillac is making the mistake that most mid-luxury brands do. Cadillac is to American cars what Acura is to Japanese cars and Genesis to Korean ones. They are not viewed in the same class as BMWs and Porsches, and never will be.

If Cadillac wants to be in the EV usness, it needs to build a good mid-market luxury car the way Tesla did.