Following is a transcript of the video.
Irene Kim: Owning a Cadillac in America means good luck and achievement. The company dominated the market, outselling all luxury automakers in the United States for decades. Just 40 years ago, about a third of all luxury cars sold in the United States were Cadillacs. NOW? Less than 7 percent of luxury cars purchased through Americans are Cadillacs, and the company is struggling to keep up with competitors whose sales it once outsold. So what happened?
Cadillos angelesc was founded in 1902. It was created from what was left of the Henry Ford company after Henry Ford left following disputes with his investors. Engineer Henry M. Lelos Angelesnd was hired to compare the company’s works in order to sell it, but instead he saw prospects. Lelos angelesnd decided to reorganize the company as Cadillos angelesc Automobile Company, naming it after the French explorer Antoine de los angeles Mothe Cadillos. angelesc, founder of Detroit, which was the American automotive center and the company’s headquarters. At first, Cadillos angelesc cars seemed the closest to those produced by the company under Ford. But they temporarily stood out and gained a reputation for being better made and more reliable. In 1909, the company was acquired by the burgeoning General Motors conglomerate and officially designated its most prestigious division.
In the decades that followed, Cadillac marked major milestones in the automobile industry, adding the first passenger car with a completely enclosed interior. The progression of the first electronic starter is most impressive. Until then, starting a car required the delicate and arduous task of starting the engine. With the help of inventor Charles Kettering, Cadillac made it simpler to the touch of a button. Advances like this have encouraged the company to adopt its iconic motto: “Cadillac: Standard of the World. “
Fast forward to 1927. Cadillac established the concept of the “luxury vehicle” with its LaSalle convertible coupe. Before LaSalle, vehicles were created strictly based on their technical needs. With this new vehicle, it was the first time a company hired a designer instead of an engineer for the job. Designed by vehicle stylist Harley Earl to be luxurious and eye-catching, the LaSalle has become a fashionable vehicle that once highlighted Cadillac’s main criteria in vehicle manufacturing.
Cadillac’s success and technical progress continued through the 1930s. But then World War II hit, and the entire car industry slowed production in order to produce tanks and aircraft engines.
But that didn’t stop the car brand. Cadillac introduced designs that came to both define the car industry and embody the prosperity of the “fabulous fifties” and 1960s. While the company received recognition for its continued engineering developments, it was Cadillac’s iconic tail fins that became a staple feature of all luxury automobiles. Not to mention its cars’ enormous dimensions and Dagmar bumpers, nicknamed after the voluptuous TV star.
At the height of its popularity, Cadillac sold five times more than its rival Lincoln and until 1968 sold more than 200,000 cars a year.
But Cadillac was much more than America’s trendiest and best-selling premium car brand. Thanks to competitive marketing through General Motors, driving a Cadillac is a symbol of prestige in the United States, for everyone from celebrities to professional athletes to presidents.
Matt DeBord: It was the pinnacle of achievement in American society at that point. They also has these zany names like Fleetwood, Eldorado. They came up with these crazy names drawn from the most pretentious notions around European heraldic badges and stuff like that. And the whole idea was to sell people on the notion that they had really made it and they were gonna ascend to some kind of premium status in American society
Irene: In the early 1970s, Cadillac was still a dominant force in the luxury car market, as the concept that “bigger is better” still held sway among buyers. However, as the economy has declined and a widespread oil crisis has spread, owning giant, gas-guzzling sedans has become much less practical and much more expensive. But more than anything, the rise of imported cars gave Cadillac serious competition, and the logo began to lose ground as quintessentially popular in America.
Matt: When the Europeans came along, the Germans in particular, with their fancy little sports sedans, it was a revelation, and a lot of other people who enjoyed driving turned to them. And they went through Porsche, BMW, Mercedes and that kind of thing. And they also began to see European cars as simply bigger and superior.
And then the Japanese arrived with their little fuel-sipping machines that are really quite reliable relative to American cars. And so people started looking at these and saying, “Well it’s a better car, it gets better fuel economy. Why am I driving around in this giant Cadillac?
Irene: Although the 1980s started off quite well for Cadillac, with sales continuing to rise, the company reacted poorly to this increase in imports. To compete with all the new foreign compact cars, the company began to reduce its entire range to create a team. of smaller, fuel-efficient cars. But their cars soon became indistinguishable not only from other General Motors brands, but also from others.
And as the company rushed to market these small vehicles in an attempt to meet the influx of luxury imports, Cadillac encountered several failures, the most successful example being the Cimarron, the smallest car Cadillac has yet produced. It sold so poorly that it got rid of diversity in 1988, just six years after its release.
Matt: It’s a Chevrolet with a Cadillac badge. It looks like a Chevrolet. It’s just a terrible little car. If you were looking for a Chevrolet, that’s fine. But if you were looking for a Cadillac, you took one look at it and said, “What’s that F, basically? So that’s a shame. But it was an attempt by General Motors and Cadillac to keep the logo in a much more competitive environment where part of Cadillac’s pricing proposition had disappeared.
Irene: Consumers have identified the declining quality of Cadillac cars, and this has been reflected in the company’s sales. Cadillac’s share of the U. S. luxury car market fell from 31 percent in 1980 to just 22 percent in 1990. As Cadillac fell, its competitor Lincoln reaped the benefits. Lincoln’s percentage doubled over the decade to 20%. And in 1998, for the first time in 59 years, Lincoln’s sales surpassed Cadillac’s.
In the 1990s, Cadillac lost all appeal to the younger market. It has become a common joke that all Cadillac owners were “between 60 and death. “Toyota’s new Lexus logo was followed by BMW, whose sales were growing rapidly. But in 1999, the arrival of what would be one of Cadillac’s most iconic cars would spare it a general meltdown and help give the logo a makeover.
The 1999 Escalade was Cadillac’s answer to the full-size SUV boom, and its response to the success of Lincoln’s Navigator. The Escalade not only performed well sales-wise, it became a pop-culture icon in itself, making its way into movies and music videos, as well as becoming a popular choice among celebrity car buyers.
Things were beginning to improve. Cadillac experienced a surge in sales, developed popularity among the youth market thanks to the Escalade, and survived General Motors’ bankruptcy in 2009, in which several brands were dissolved.
Unfortunately, the 21st century has not been entirely compatible with the once glorious Cadillac brand. Although Cadillac’s lineup of trendy sports sedans and functional models has been well-received by critics and the media, the numbers say otherwise. In 2018, the brand saw its share of the luxury car market in the U. S. fall. UU. al 7%, selling just 154,702 cars that year, including Acura. And its sales to U. S. buyers are only falling.
But why? How can a company that continues to produce high-quality cars with high-end technology, such as its Super Cruise autonomous driving system, continue to decline in sales? Well, Cadillac has been slow to join the crossover SUV trend, which now accounts for 60% of luxury car sales in the United States.
But despite its problems in the US, the company may have found its answers in the global market — particularly in China.
Matt: The U. S. market has been at record levels lately in terms of sales. So there’s not much room for further expansion. And you say, “Wait a minute. Where will we see all the expansion in the future?And General Motors looks across the ocean and sees China, whose market is already much larger than the United States, with annual sales of more than 20 million and could probably reach 30 or 40 million in the long term. And General Motors is pursuing this scenario and saying, “People in China will get richer in the future and will need to identify their prestige as a rich user with a car. “Why shouldn’t this be a problem?” Cadillac?” So they just say, “Well, why not put a Cadillac in there? “Well, they put a Cadillac in there 10 years ago and it was incredibly impressive.
Irene: Between 2016 and 2017, Cadillac sales in China soared by more than 50%, helping Cadillac achieve its second global sales record in the company’s 115-year history. The company already plans to expand its dealer network to 500 in China by 2025.
Matt: We’re seeing a rise in Cadillac, we’re seeing a fall in Cadillac, and the fall could be anything that can’t be stopped in the market where the logo was created. I mean, it’s one of the original General Motors logos. But they might just create a logo that means anything somewhere else in the world.
Following is a transcript of the video.
Irene Kim: Owning a Cadillac in America means good luck and achievement. The company dominated the market, outselling all luxury automakers in the United States for decades. Just 40 years ago, about a third of all luxury cars sold in the United States were Cadillacs. NOW? Less than 7 percent of luxury cars purchased through Americans are Cadillacs, and the company is struggling to keep up with competitors whose sales it once outsold. So what happened?
Cadillos angelesc was founded in 1902. It was created from what was left of the Henry Ford company after Henry Ford left following disputes with his investors. Engineer Henry M. Lelos Angelesnd was hired to compare the company’s works in order to sell it, but instead he saw prospects. Lelos angelesnd decided to reorganize the company as Cadillos angelesc Automobile Company, naming it after the French explorer Antoine de los angeles Mothe Cadillos. angelesc, founder of Detroit, which was the American automotive center and the company’s headquarters. At first, Cadillos angelesc cars seemed the closest to those produced by the company under Ford. But they temporarily stood out and gained a reputation for being better made and more reliable. In 1909, the company was acquired by the burgeoning General Motors conglomerate and officially designated its most prestigious division.
Over the next few decades, Cadillac set huge milestones in the auto industry, including the first passenger car with a fully enclosed cabin. Perhaps most impressive was the development of the first electronic self-starter. Up to that point, starting a car required the awkward and strenuous task of cranking up the engine. With some help from inventor Charles Kettering, Cadillac simplified it to just the push of a button. Breakthroughs like this inspired the company to adopt its iconic slogan: “Cadillac: Standard of the World.
Fast forward to 1927. Cadillac established the concept of the “luxury vehicle” with its LaSalle convertible coupe. Before LaSalle, vehicles were created strictly based on their technical needs. With this new vehicle, it was the first time a company hired a designer instead of an engineer for the job. Designed by vehicle stylist Harley Earl to be luxurious and eye-catching, the LaSalle has become a fashionable vehicle that once highlighted Cadillac’s main criteria in vehicle manufacturing.
Cadillac’s good fortune and technical advances continued through the 1930s, but then World War II broke out and the entire automotive industry slowed production to produce tanks and airplane engines.
But that didn’t stop the car brand. Cadillac brought models that explained the automobile industry and embodied the prosperity of the “fabulous 50s” and 60s. Although the company was known for its continuous technical advances, it was Cadillac’s iconic rear spoilers that are an essential component of all luxury cars. Not to mention the enormous dimensions of their cars and the Dagmar bumpers, nicknamed in honor of the voluptuous television star.
At the height of its popularity, Cadillac was selling over five times that of rival Lincoln, and in 1968 managed to sell over 200,000 vehicles for the year.
But Cadillac was more than just America’s most stylish and top-selling premium car brand. Through General Motors’ aggressive marketing, driving a Cadillac became a status symbol in America, to everyone from celebrities and professional athletes to presidents.
Matt DeBord: It was the pinnacle of good fortune for American society at the time. They also have crazy names like Fleetwood, Eldorado. Se they came up with those crazy names taken from the most pretentious notions about European heraldic insignia and things like that. And the idea was to let other people know that they had actually succeeded and that they were going to achieve some kind of privileged prestige in American society.
Irene: In the early 1970s, Cadillac was still a dominant force in the luxury car market, while the concept that “bigger is better” was still alive among buyers. However, as the economy declined and a widespread oil crisis spread, owning giant, mass-market sedans have become much less convenient and much more expensive. But more than anything, the rise of imported cars gave Cadillac serious competition and the logo began to lose ground as the quintessentially popular one in America.
Matt: When the Europeans came, the Germans in particular, with their sleek little sports sedans, it was a revelation, and a lot of other people who enjoyed driving turned to them. And they went through Porsche, BMW, Mercedes and that kind of thing. And they also began to see European cars as simply older and superior.
And then came the Japanese with their small fuel-efficient machines that are quite reliable compared to American cars. And then other people started chasing them and saying, “Well, it’s a bigger car, it uses less fuel. “Why am I driving this giant Cadillac?
Irene: Although the 1980s started out quite well for Cadillac, with sales continuing to increase, the company reacted poorly to this increase in imports. To compete with all the new foreign compact cars, the company began to reduce its entire range to create a team. of smaller, fuel-efficient cars. But its cars soon became indistinguishable not only from other General Motors brands, but from others as well.
And as the company hastily pushed out these smaller cars to try and match the influx of luxury imports, Cadillac encountered a number of failures, the prime example being the Cimarron, the smallest car Cadillac had ever produced to that point. It sold so poorly that it was axed from their lineup by 1988, just six years after its launch.
Matt: It’s a Chevrolet with a Cadillac badge. It looks like a Chevrolet. It’s just a terrible little car. If you’re looking for a Chevrolet, that’s fine. But if you were looking for a Cadillac, you would look at it and say, “What is that F, basically? So it’s just a shame. But it’s an attempt through General Motors and Cadillac to keep the logo in a much more competitive environment where part of Cadillac’s pricing proposal was gone.
Irene: Consumers identified the drop in quality of Cadillac cars and this was reflected in the company’s sales. Cadillac’s share of the U. S. luxury car market fell from 31% in 1980 to just 22% in 1990. When Cadillac fell, its competitor Lincoln reaped the benefits. Lincoln’s percentage doubled over the decade to 20%. And in 1998, for the first time in 59 years, Lincoln’s sales surpassed Cadillac’s.
In the 1990s, Cadillac lost all appeal to the younger market. The not unusual joke has become that all Cadillac homeowners were “somewhere between 60 and death. ” The US luxury car market was now largely ruled by Mercedes, followed largely by the new Toyota Lexus logo, followed by BMW, whose sales were developing rapidly. But in 1999, the arrival of what would become one of Cadillac’s most iconic cars would save it from a general meltdown and help give the logo a makeover.
The 1999 Cadillac Escalade’s reaction to the rise of full-size SUVs and the good luck of Lincoln’s Navigator. Not only did the Escalade perform well in sales, but it has also become a pop culture icon in its own right, appearing in videos and music videos, and also fitting into a popular selection among celebrity car buyers.
Things were starting to look up. Cadillac saw a bump in sales, a rise in popularity with the youth market thanks to the Escalade, and somehow survived General Motors’ 2009 bankruptcy that saw multiple brands dissolve.
Unfortunately, the 21st century has not been entirely compatible with Cadillac’s once glorious brand. Although Cadillac’s line of fashionable sports sedans and functional models has been well received by critics and the media, the numbers say otherwise. In 2018, The brand saw its share of the luxury car market in the US drop to 7%, selling just 154,702 cars that year, including Acura. And its sales to American buyers are only falling.
But why? How can a company that continues to produce high-quality cars with high-end technology, such as its Super Cruise autonomous driving system, continue to decline in sales? Well, Cadillac has been slow to join the crossover SUV trend, which now accounts for 60% of luxury car sales in the United States.
But despite its problems in the US, the company may have found its answers in the global market — particularly in China.
Matt: The US market is at peak levels right now as far as sales. So there’s not a whole lot of additional room for growth. And you say, “Wait a minute. Where are we gonna see all the growth in the future?” And General Motors looks across the ocean and sees China, whose market is already much larger than the US market, in excess of 20 million in annual sales and could probably go to 30 million, or 40 million eventually. People don’t have a lot of cars in China. And General Motors is looking at this situation and saying, “People in China are going to get richer in the future, and they’re going to want to identify their status as a wealthy person with an automobile. Why shouldn’t that be a Cadillac?” So they’re just thinking, “Well, why don’t we put Cadillac in there?” Well, they put Cadillac in there 10 years ago, and it’s been extremely impressive.
Irene: Between 2016 and 2017, Cadillac’s sales in China soared by more than 50%, allowing Cadillac to record its second-highest global sales record in the company’s 115-year history. The company is already making plans to expand its network of brokers to 500 in China by 2025.
Matt: We’re watching Cadillac rise, we’re watching Cadillac fall, and the fall could be anything that can’t be stopped in the market where the logo was created. I mean, it’s one of the original General Motors logos. But they might just create a logo that means anything somewhere else in the world.
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