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Cadillac brand sold 227997 vehicles in China in 2018, an increase of 31.8% over the same period last year. Cadillac not only won the top spot in second-tier luxury brand sales, but also became the fourth domestic luxury brand with annual sales exceeding 200000 after Mercedes-Benz, BMW and Audi.

In 2019, the sales of new cars in China continue to decline, the growth rate of luxury cars has declined, and the market competition has become more prominent. The latest figures show that Cadillac sold 20587 new cars in May, up 18.9 per cent from a year earlier, while cumulative sales from January to May this year were 93382, down 5 per cent from a year earlier.

By contrast, Lexus, which ranks second among second-tier luxury brands, sold 76000 vehicles in China from January to May, up 27 per cent from a year earlier. Luxury car second-line formation is in a polarized situation, Jaguar Land Rover, Infiniti, DS, Acura and other brands are still not improving.

The "price for volume" Cadillac has little problem with continuing to exceed 200000 vehicles this year, but the brand's reputation and value have been greatly damaged in return. At present, the Cadillac terminal adopts a price reduction strategy, and a number of national five emission inventory models are sold at a 40% discount, which undoubtedly hurts Cadillac owners and leads to damage to the value of the brand.

Affected by the implementation of the national six emission standards, manufacturers strive to clear the inventory of national five vehicles within the time limit, resulting in a substantial reduction in the price of national five vehicles in the terminal market.

In the case of Cadillac, for example, manufacturers are the first to start with employees, cutting the prices of many models by about 100000 to as low as 40 per cent discount. For SAIC employees to buy cars, the ATS-L employee price starts from 180000, and the XTS only needs 210000.

Affected by this, Cadillac market prices also "plunged", ATS-L national five models to reduce the price to less than 200000 promotion information everywhere.

In fact, the Cadillac brand terminal market discount has always been relatively large, mainly through price competition, price for quantity, coupled with the ATS-L which has been listed for more than 6 years is about to be replaced, the sixth emission is about to be implemented, and so on, there will be a market sale, through this way to quickly get rid of inventory is also a way.

The implementation of the sixth grade will have a great impact on the mainframe factory and dealers, and even crush it, and the price of inventory cars will be greatly reduced. Some netizens said: what face you want, it is most important to survive.

In view of the current situation of the Cadillac brand, some industry insiders said, "Cadillac seems to have been very successful in 17 and 18 years, but it has also planted hidden dangers, with low second-hand salvage value and lower customer loyalty rate. Now a large number of 17, 18 used cars hang 200000 +, but how many transactions actually? In the end, it will hurt former customers and potential customers. " In response, there have been many complaints from Cadillac users on the Internet.

Cadillac's "price for volume" behavior is likely to be a "double-edged sword". Although it has preserved sales and temporarily won the championship position of second-tier luxury brands, the negative impact of price collapse on the overall brand image is inevitable and irreparable.

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