WARREN, Mich. — General Motors is on a mission to re-establish Cadillac as the quintessential American luxury car brand. Walking into GM’s global design headquarters feels like stepping back in time, with much of its midcentury-modern architecture preserved since the 1950s. This era marked GM’s ‘Golden Era,’ when Cadillac led as ‘the standard of the world.’ However, decades of market share declines due to competition from BMW, Mercedes-Benz, Lexus, and others have challenged this legacy. GM President Mark Reuss envisions a resurgence for Cadillac, emphasizing the importance of American luxury brands. Competitors include Ford’s Lincoln, German, Japanese, and South Korean brands, as well as Tesla and Lucid Group. The luxury vehicle market is crucial for automakers due to higher profit margins and affluent customers viewing these cars as status symbols. Reuss has overseen a product renaissance for Cadillac, focusing on all-electric vehicles, sporty sedans, and the flagship Escalade. In 2018, Reuss and others mapped out a strategy to isolate Cadillac’s products from GM’s other brands, sharing only some components while focusing on exclusive interiors and engines. This approach aims to elevate Cadillac’s status and increase vehicle residual values. The brand also seeks to reduce incentives. Cadillac’s shift to all-electric vehicles aims to compete with Tesla’s Model Y and Model X. The first product under this strategy was the all-electric Lyriq, launched in 2022, with the Celestiq as the pinnacle. Challenges remain, particularly in China, where sales have declined due to growing local brands. GM remains focused on revitalizing Cadillac globally, including potential returns to Europe. — new from CNBC
