Luxury Race: Is the Cadillac’s Foot Off the Pedal?

Even at a time when Germany luxury brands BMW, Mercedes, and Audi seem to be pulling ahead of their competition, General Motors Corp. (NYSE:GM) is remaining level-headed, CFO Dan Ammann assured Automotive News Monday. Rather than attempting to match GM’s German competitors, the company will instead be focusing on its own smaller lineup, which it plans to fill with 10 new or redesigned models by mid-2015.

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BMW, Mercedes-Benz, and Audi are hustling to introduce new models, as they compete for new buyers in the competitive luxury segment. According to Automotive News, the Mercedes CLA sedan will arrive in September, along with the Audi A3 sedan. Both are vying for the attention of younger buyers, similar to the x1 small crossover that BMW recently released.

Despite these advancements, Ammann feels little pressure to have Cadillac match its competitors model for model and compete in the luxury brand foot race, explaining, “Continuing to move down price points, and microsegmentation of all of these little categories, all seem to be driven by a sort of volume-at-all-costs mentality.” Rather than engaging, he feels comfortable about taking a step back and developing Cadillac’s smaller base.

Cadillac sales are up 37 percent from last year but still trail Mercedes, BMW, and Lexus.

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