Tomahawk, WI 07/10/2014 (Basicsmedia) – General Motors Company (NYSE:GM) has on its hand another problem in the name of decreasing sales for its luxury model, Cadillac. The model continues to face huge competition from other luxury models seen by the fact that it is ranked number 5 at 1.2% in terms of sales behind BMW at 12.8%.  Phil LeBeau on CNBC News has pointed out that Cadillac is performing badly in the market as a result, of its main competitors enjoying an impressive year.

“Their competitors are all having great years but Cadillac is down 1.2%. Their sales are under pressure because of increased competition particularly on the lower end” Said Mr. LeBeau. General Motors Company (NYSE:GM) ATS Sales are already down by 21.8% this year. Audi A3 and Mercedes CLA are, on the other hand, performing better in the market consequently cutting into Cadillac ATS Sales, on the entry level markets.

The fall in demand for Cadillac comes at a time that General Motors Company (NYSE:GM) is facing  increased legal inquiries over recalls that have marred it for the better part of the year. Cadillac was not heavily affected by the recalls as only a few of them needed fixes. Despite General Motors doing all that is necessary to popularize Cadillac ELR all has not gone well.

General Motors Company (NYSE:GM) run an advert on Cadillac ELR on Super Bowl Sunday and again during the Olympics; despite the advert achieving lots of airplay the giant automaker has only been able to sell 390 of the model. This has essentially cast lots of doubt on the model popularity in the luxury space.

Mr. LeBeau points out that the price for Cadillac ELR could be the utmost problem why it is not achieving high sales, considering there are other luxury models at a lower price range. “It starts at $75000 grand that is part of the problem. If you are going to spend $75000 for on extended range electric vehicle,  why don’t you just go out and buy a model X ” Said Mr. LeBeau.

As encouraging China is for General Motors Company (NYSE:GM); the U.S remains the biggest market for Cadillac despite lagging sales this year.

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