Cadillac has confirmed that the brand is planning to increase the
prices of their vehicles in the coming years and this plan will most
likely happen.
According
to a number of reliable sources, Cadillac's plan of boosting the prices
of its vehicles up was triggered by the rising cost of raw materials,
vehicle components or the costs of labor involved in producing luxury
vehicles. The planned increase was basically due to the brand's
intention to take its luxury credentials to a higher level and somehow
match the prices of its rivals from Europe such as the Mercedes Benz and
BMW.
In lieu of this particular plan, Don Butler who is the
current vice president of Cadillac explained that there is great need
for the brand to increase the prices of its vehicle so as to
re-establish Cadillac's status as a producer of luxury vehicles.
In
a statement, Butler cited the Cadillac CTS as a good example of how the
brand's car models are priced way below its European rivals. According
to Butler, the current base price of the CTS is about $8000 lower than
its closest competitor which is the BMW 5-Series and this price
difference could be considered as a great deal for luxury car shoppers
who want to earn larger savings. However, by looking at the situation
from the luxury market's point of view, the lower base price of CTS
could become a great issue since selling a luxury car at a very low
price diminishes its value and this could also turn the CTS to a common
vehicle rather than a luxurious one.