Lincoln, Cadillac woo buyers with extras

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Auto dealers vie to distinguish their brands in a soft market
Robert Snell / The Detroit News

General Motors and Ford have dropped their fur-lined gloves and are engaging in one-upmanship to distinguish their luxury brands in a competitive segment of the market.

Ford Motor Co.'s Lincoln and General Motors Co.'s Cadillac are dangling free maintenance deals, a perk long offered by rival import BMW, but dropped by luxury automakers Lexus, Audi and Mercedes-Benz in recent years amid high costs.

The goal is not to boost sales during the short term in a soft luxury market, but to distinguish the premium domestic brands from their foreign rivals, raise brand awareness for Lincoln and Cadillac, and cultivate long-term repeat customers.

Their efforts come as the luxury car market has posted single-digit percentage gains and luxury sport utility sales have increased 30.7 percent in the first half of the year, despite a weak economy. Other vehicle segments, such as pickups and sport utility/crossovers, have notched double-digit increases this year, while the overall market has climbed 16.7 percent.

The domestic brand incentives sparked mixed reactions from dealers and industry analysts, who said free maintenance perks could help them compete with foreign rivals, but likely won't boost sales in the short term.

"It's a customer comfort sort of thing and a little bit of exclusivity," said auto analyst Joe Phillippi of AutoTrends Consulting in Short Hills, N.J. "You're not going to get this at a Chevy or Ford dealership. Someone's not going to buy a Cadillac or Lincoln because they think the free maintenance deal is better than the other guy's. But it's going to make them happy while owning the car."

While Cadillac and Lincoln lag Lexus, BMW and Mercedes in sales, the domestic brands were up 33.3 percent and 7.5 percent, respectively, through June, compared with the 9.4 percent increase in the overall luxury segment.

Dealers encouraged
Some dealers are encouraged and hope the perks trigger an increase in showroom traffic at a time when retail sales remain sluggish amid a weaker-than-expected recovery in the auto industry.

"It will make it a little easier to get customers in the door," said Justin Osen, a salesman at Don Gooley Cadillac in St. Clair Shores.

Last month, Lincoln unveiled a deal offering free scheduled maintenance for three years or 45,000 miles for those who buy or lease a new 2010 or 2011 Lincoln. Cadillac followed three days later, upping the deal to four years or 50,000 miles on 2011 models.

The Lincoln program, which expires Sept. 7, covers oil changes, tire rotations, routine inspections, engine belts, hoses and replacement of wiper blades and brake linings. The Cadillac offer will be standard on 2011 models.

Chrysler Group LLC doesn't have any luxury brands and declined to comment whether it has any similar perks for its lineup.

The Cadillac and Lincoln offers aren't the right tool to lure buyers or close sales, said Lincoln dealer Tammy Darvish, vice president of DARCARS Automotive Group in Silver Spring, Md.

"I don't think it will really have a lot of impact," she said. "People don't come in and buy a car because of free maintenance."

But the offer could convince a customer to stay loyal to a particular dealership and help the dealer build a relationship with the customer, Darvish said.

"I prefer to go into a relationship with longevity at the heart of it," she said. "Not just a quick 'come in and get a free oil change,' and we'll never see you again."

The timing of the offers coincides with automakers clearing out 2010 models and introducing new models. For Cadillac, the first vehicle eligible under the deal is the CTS Coupe, which reaches showrooms later this summer.

"It's a good time to offer these types of deals. They're being competitive at a time when people are luxury shopping," said Jessica Caldwell, a senior analyst at Edmunds.com.

"They need to prove themselves and offer a competitive product before they can compete with BMW or Mercedes," she added. "Right now, it's crucial for them to step up their game and break into the luxury market strongly."

Caldwell is encouraged that the luxury segment hasn't tanked along with the economy. Sales should improve later this summer and early fall as 2010 models are liquidated and 2011 models introduced, she said.

A mixed reception
The offers' varying lengths and coverage met with mixed reception among some analysts, however, who say Cadillac, in particular, didn't go far enough.

James Bell, executive market analyst for Kelley Blue Book, faulted Cadillac for failing to cover wear-and-tear items such as windshield wipers and brakes.

Cadillac's deal covers scheduled oil changes, tire rotations, engine and cabin air filters, and a multipoint vehicle inspection.

The offers should generate additional warranty and service profits for dealerships coping with sluggish retail sales, Bell said.

In addition, they should help ensure that owners take better care of leased and low-mileage vehicles, which ultimately will be resold by those same dealers, he said.

"Our bet says these programs become standard offerings from both U.S. manufacturers in the next year," Bell said.

The offers are not particularly novel -- many European brands have offered such perks for years -- but they do signal bids by Ford and GM to more aggressively pursue luxury segment leaders Mercedes and Lexus.

"The program is designed to raise satisfaction for owners by ensuring access to expert service," said Kurt McNeil, vice president of Cadillac sales and service. "It should lead to higher loyalty rates for dealers by establishing them as a valued resource for our customers."

The efforts also could increase margins for sales staff and ease the stress of buyers seeking freebies.

Each time Osen sells a Cadillac SRX, for example, his cut is $280 before taxes. But that amount shrinks after taxes and the $80 oil change that he routinely offers free to his customers.

The incentive also could help ensure leased vehicles are returned in better condition and easier to sell, Osen said.

"If the car gets fixed for free, what do they care?" Osen said. "I can't tell you how many lease turn-ins have the light on saying it needs an oil change."

Come check out all of the new Cadillacs at Bradshaw Cadillac in Greer SC. Shop 24/7 at www.BradshawGreer.com

Cadillac Reveals 550-Horsepower CTS-V Sport Wagon

By LAWRENCE ULRICH

Cadillac revealed its mega-horsepower CTS-V Sport Wagon two days ahead of the New York auto show’s media days, which begin unofficially with a series of parties on Tuesday night and officially on Wednesday morning.

The Sport Wagon is a station wagon that follows a tradition that had been exclusive to Europe — high performance wagons that can rival sports cars or record boast-worthy Nürburgring lap times (see Audi RS6 Avant). Nick Twork, a Cadillac spokesman, said that the show-version CTS-V wagon was also built to convince company executives — successfully, it turns out — to put the car into limited production. “We just tweaked it for the show a little,” Mr. Twork said. “It’s a business, so we have to justify what we do. People who buy it will be part of a very small club, but it’s the ultimate insider’s car.”

The Sport Wagon comes with all the things that make the CTS-V sedan one of the world’s fastest four-doors, including a 556-horsepower supercharged V-8, available 6-speed manual shifter, magnetic computer suspension, Recaro seats, Brembo brakes – and now, a power lift-gate to go with a top speed of roughly 185 miles per hour. The CTS-V wagon should reach dealers at the tail end of 2011. With the sedan starting at $61,545, the wagon version should stay below $65,000, about $30,000 less than the new Mercedes-Benz E63 wagon, if Benz ever decided to import it here.

We’ll have more information on the CTS-V Sport Wagon when the New York auto show opens to the news media on Wednesday.

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• Officially Official: 2011 Cadillac CTS-V Sport Wagon unleashed! (autoblog.com)

Test Drive: Buick LaCrosse

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From Mark Eckos Complex.com

By now you’ve seen the commercials where Buick calls out Lexus and claiming that their new LaCrosse is as good, or better, than the ES series. And not only is it better, that it’s cheaper, too. Sounds too good to be true, don’t it? We thought so too until we hopped behind the wheel of Buick’s new mid-sized luxury sedan. The car that was designed partly by GM’s Chinese arm—Buick’s are HUGE in China. It packs in a hell of a lot of luxury in a package that doesn’t look as if it was made for your grandmother. Read on to see if Buick latest offering is as good as they claim. Spoiler alert: it is!

RIDE: The goal for the LaCrosse, as you can see by the commercials, was to go head to head with Lexus’ ES. But in order to do battle against their mid-sized, front wheel drive offering, they had to make sure the LaCrosse was just as comfortable to drive. And they’ve succeeded. The CXS we drove with the 3.6 L, 280 hp V6, was a smooth as any Lex we’ve driven. There’s a real sense of calm when you drive it. The six-speed automatic transmissions shifts smoothly, the road noise is kept to a minimum and the steering is nicely weighted to provide you with just the right amount of info. Not enough for you to confuse it for a sports sedan, but enough so you don’t fall asleep behind the wheel.

EXTERIOR: The LaCrosse is the best design to come out of Buick in decades. Most people resign Buicks as cars for the elderly, but the LaCrosse, though it sounds old, actually envokes a youthful spirit. It’s curvy, but sharp. We could go without all the chrome slathered on the rear and grill, but what can you do? It looks substantial and expensive, without coming off as stuffy and pretentious. The latter is probably due to the fact that it’s a Buick, but it is what it is.

INTERIOR: Back in GM’s heyday, when they had a number of overlapping brands, Buick served as the nameplate that delivered the same a features as the higher priced Cadillac’s but in a more reasonably priced package. The LaCrosse carries on that tradition with its interior. It doesn’t have all the trick electronics that Caddy’s have, like the navigation screen that rises out of the dash. But we’d be damned if the interior wasn’t the one of the best in GMs entire line up. That may have something to do with the fact that it was designed in China where Buick is considered better than Mercedes-Benz. Everything is comfortably set up. From the nice blue that shines through the gauges and the dash, to the nice wood trim swirling throughout, it all just works. However, there are some pieces that were overlooked. In our test car, the indicator stalk was very loose and rattled at times while driving. But one thing we did like is the rear legroom. Because the car is used to chauffeur rich business and government types, the rear legroom was made to accommodate accordingly.

TECH: Besides GM’s OnStar service, our LaCrosse CXS came with a CD/DVD player that had an 3.5″ aux connection for your MP3 player, a 40 gig hard drive and a rearview camera. All of which worked well.

SUMMARY: The LaCrosse is a great step in Buicks goal to once again become the affordable luxury car maker. For about $1200 less than a comparable Lexus, you get most of the same tech and features as well as a car that can ride just as comfortably. It ain’t the end of the road—there are still a couple things the Lex does better: fit and finish, audio quality. But Buick managed to create a package that would do well against other luxury marquees in any country. If you’re looking for a comfortable cruiser, it’s worth the look.

Edmunds.com unveils recommended cars, trucks for 2010

by The Weekly Driver News Service on Jan 12, 2010 Edmunds.com, the premier online resource for automotive information, has released its 2010 New Car Buying Guides to advise car shoppers about the best new cars and trucks.
The guide contains Edmunds.com's Top Recommended Vehicles — shopping lists for consumers interested in any market segment. Another section of the guide, What You Should Know before Buying, provides valuable segment-specific guidance no car shopper should miss.

"You're ready to buy a new vehicle, but how do you go about narrowing down the choices?" Karl Brauer, Editor in Chief of Edmunds.com asked. "Consumers can really use a friend in this overwhelming process; our buying guides give them the benefit of our extensive experience testing and researching every car on the market."
Here are Edmunds.com top recommended vehicles for
2010:
Sedans
Under $15,000 —- Honda Fit, Hyundai Elantra
Under $20,000 —- Mazda MAZDA3, Suzuki Kizashi, Ford Fusion
Under $25,000 —- Honda Accord, Volkswagen Jetta. Toyota Prius
Under $30,000 —- Buick LaCrosse. Volkswagen CC
Under $35,000 —- Hyundai Genesis, BMW 3 Series, Infiniti G37
Under $50,000 —- Cadillac CTS, Mercedes-Benz E-Class
Under $60,000 —- Jaguar XF, BMW M3
More than $60,000 —- Porsche Panamera, BMW 7 Series, Mercedes-Benz S-Class
Trucks
Compact —- Nissan Frontier, Toyota Tacoma
Large —- Dodge Ram 1500, Toyota Tundra
SUVs
Under $25,000 —- Chevrolet Equinox, Honda CR-V, Toyota RAV4
Under $35,000 —- Chevrolet Traverse, Volvo XC60, Mazda CX-9
Under $45,000 —- Audi Q5, Toyota Sequoia
Over $45,000 —- Toyota Land Cruiser, BMW X5
Wagons/Minivans
Under $20,000 —- Volkswagen Jetta, Kia Soul
Under $30,000 —- Ford Flex, Subaru Outback
Under $40,000 —- Cadillac CTS, Audi A4
Over $40,000 —- BMW 5 Series, Audi A6
Minivans —- Honda Odyssey, Toyota Sienna, Kia Sedona
Hybrids and Diesels
Hybrids —- Honda Insight, Ford Fusion Hybrid, Toyota Prius, Lexus HS 250h, Ford Escape Hybrid.
Diesels —- Mercedes-Benz GL-Class, Chevrolet Silverado 2500HD, BMW 3 Series Volkswagen Jetta.
Convertibles
Under $25,000 —- Mini Cooper, Mazda MX-5 Miata
Under $35,000 —- Ford Mustang, BMW 1 Series
Under $45,000 —- BMW 3 Series, Nissan 370Z
Under $60,000 —- Porsche Boxster, Chevrolet Corvette
Over $60,000 —- (2009) Mercedes-Benz SL-Class, (2009) Porsche 911
Coupes
Under $20,000 —-Mini Cooper, Honda Civic
Under $30,000 —- Hyundai Genesis Coupe, Ford Mustang
Under $40,000 —- BMW 3 Series, Audi A5
Under $60,000 —- Mercedes-Benz E-Class, Porsche Cayman
Over $60,000 —- Audi R8, Porsche 911
Vehicles for Mobility Challenged Drivers
Sedans —- Toyota Prius, Chevrolet Impala, Ford Taurus
Wagons and SUVs —- Honda Element
Full-Size Vans and Minivans —- Ford Transit Connect, Chrysler Town and Country, (2009) Dodge Sprinter.
Press release courtesy of http://www.edmunds.com/

Consumer Reports: Only One Luxury Sedan Gets Excellent Score - CTS

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January 06, 2010YONKERS, N.Y. — Consumer Reportsrecently tested five redesigned luxury sedans from Cadillac, Acura, Audi, Mercedes-Benz and Lincoln, and just one posted an overall score considered to be "excellent."

Field testers put each vehicle through a battery of examinations at its center in East Haddam, Conn., and the Cadillac CTS received the excellent status by getting a score of 84.

Acura's vehicle in the test group came in second place. The RL had a score of 80, determined to be "very good" by the magazine. Two other luxury units received "very good" scores and finished right behind the Acura RL. Both coming in at 79 were the Mercedes-Benz E350 and Audi A6. Rounding out the most recent batch of testing was the Lincoln MKS, which also received a "very good" score at 75.

However, the performance of the Cadillac CTS placed the vehicle into a unique position in Consumer Reports' evaluations. The score put up by the model trailed only the Infiniti M35 among the 13 luxury sedans that have been rated by the publication.

"With excellent driving dynamics, a smooth and punchy drivetrain and a well-furnished interior, the CTS outscores some of the best imported luxury sports sedans," noted David Champion, senior director of Consumer Reports' Auto Test. Despite the glowing review, what the publication considered to be below-average reliability kept officials from recommending the Cadillac CTS.

In fact, the only luxury sedan the publication recommended was the Acura RL. Officials pointed out that the Mercedes-Benz unit is too new to have reliability data. Furthermore because they tested the Audi A6 3.0T and Lincoln MKS Ecoboost with newly introduced engines, they did not want to make a prediction on reliability.

"Consumer Reports only recommends vehicles that have performed well in its tests, have at least average predicted reliability based on Consumer Reports' Annual Auto Survey of its more than 7 million print and Web subscribers, and performed at least adequately if crash-tested or included in a government rollover test," officials explained. As a bonus, Consumer Reports also tested a hybrid vehicle when it made its latest evaluation of luxury sedans. Testers gave an "excellent" score of 83 to the Lexus HS 250h. They mentioned the mark was slightly higher than what they awarded to the Toyota Prius.

Consumer Reports analysts also shared additional comments about each of the five luxury sedans and the hybrid unit they recently reviewed:

Cadillac CTS "The CTS gives up virtually nothing to the premium European cars tested in terms of refinement, powertrain, ride or handling. The ride is supple and controlled and handling is agile and sporty. The Cadillac CTS Premium RWD ($50,995, MSRP as tested) is powered by a 304-horsepower, 3.6-liter six-cylinder engine that delivers lively performance and gets 19 miles per gallon overall in CR's own fuel economy tests. The six-speed automatic transmission shifts responsively. Braking is excellent. The interior is plush, with well-fitted padded panels and nice touches of wood and chrome. It has a moderately sized trunk."

Acura RL "The Acura RL is a pleasant and refined car, but the driving experience isn't special enough to justify its $50,000 price tag. The car is full of electronic conveniences, but the ride and backseat are not as comfortable as those found in competing vehicles. Handling is sound, but less sporty than most of its competitors. The Acura RL AWD ($50,660, MSRP as tested) is powered by a 300-horsepower, 3.7-liter V6 engine that is smooth and slick and delivers 19 mpg overall on premium gasoline. The five-speed automatic transmission is very smooth and responsive. Braking is very good. The RL's high-quality interior has impeccable fit and finish. For a car in this class, the RL's trunk is modest."

Audi A6 "Audi freshened the A6 with a new, supercharged engine that improves performance while retaining decent fuel economy. Handling remains responsive and secure, the seats are very comfortable, and the interior is nicely finished. The A6 Premium 3.0T Quattro AWD ($53,075, MSRP as tested) is powered by a 300-horsepower, 3.0-liter supercharged V6 engine that delivers strong acceleration and 20 mpg overall on premium fuel. The six-speed automatic transmission shifts smoothly. Braking is very good. The rich interior is trimmed with high-quality materials and panels are tight-fitting. Trunk space is good."

Mercedes-Benz E350 "The redesigned E350 doesn't ride as comfortably or handle as well as its predecessor. Handling is still capable but not exceptional, and the ride isn't as absorbent as before, but still the E350 is quick and quiet, solid, comfortable and luxurious. The Mercedes-Benz E350 RWD ($55,245, MSRP as tested) is powered by a 268-horsepower, 3.5-liter V6 engine that delivers smooth and strong performance and 19 mpg overall on premium fuel. The seven-speed automatic transmission usually shifts smoothly. Braking is very good. The interior is nicely finished with padded panels and high-quality materials. The trunk is good-sized."

Lincoln MKS "The MKS, which is based on the Ford Taurus, doesn't do much to set itself apart for its higher price. It has many amenities and well-finished interior, but the driving experience is ordinary. The Lincoln MKS EcoBoost AWD ($52,770, MSRP as tested) is powered by a 355-horsepower, 3.5-liter turbocharged V6 engine that provides strong performance and gets 18 mpg overall. The six-speed automatic transmission shifts quickly and smoothly. Braking is very good. The inviting interior has thickly padded and stitched panels and nicely detailed front perforated-leather seats. The MKS has a good-sized trunk, but its opening is very short."

Lexus HS 250h "Though pleasant overall, the HS 250h doesn't have the refinement, quietness and ride comfort associated with the Lexus brand. The cabin is narrow, and handling is unexciting. The Lexus HS 250h Premium Hybrid ($38,939, MSRP as tested) is powered by a 187-horsepower 2.4-liter 4-cylinder hybrid electric/gasoline engine that delivers adequate performance and excellent fuel economy at 31 mpg overall. It can drive up to 26 mph on electric power alone. The CVT transmission works very smoothly. Braking is very good. The interior trim uses high-grade materials. The trunk is modest."

Test drive a 2010 CTS today at Bradshaw Cadillac in Greer, SC. Shop 24/7 at www.bradshawgreer.com

Mercedes, Lexus, and Saturn top ranking of U.S. dealerships

Todd Agostini is glad that luxury auto sales are down right now. The sales manager at the Jaguar dealership in Cherry Hill, N.J., Agostini says that Jags take a discerning eye to appreciate. And the heady times before the credit crunch were bringing in too much riff-raff--customers who didn't fully understand the brand or thecars themselves.

"We couldn't stand selling cars to people who really didn't have any business in our car," says Agostini. "Not that we didn't like the people at all, but it hurts the brand."

It sounds elitist, but Cherry Hill is the No. 17 Jaguar dealer in the country, and No. 1 for used Jaguar sales. The dealership has been able to remain profitable, so far, in an auto market with new-car sales down 36% from last year.

It's partly the cars that keeps customers coming, sure, but it's also the experience those customers have in the showroom. While General Motors ( GMGMQ.PK - news - people ) and Chrysler are closing roughly 1,100 and 800 dealerships nationwide, respectively (and surviving dealerships conjure ways to attract their customers), Jaguar joins several other luxury brands in shining through the recession's haze.

Mercedes-Benz, Lexus and Jaguar are the top three brands when it comes to consumer satisfaction at their dealerships. Along with Saturn and Land Rover, they round out the top five in our list of the best dealerships in the country.

Behind the Numbers To generate our list of the best car dealerships this year, we used data provided by Pied Piper Management, a California-based marketing firm. The numbers were collected between July 2008 and June 2009 using 3,531 anonymous shoppers at dealerships of every automotive brand, nationwide. The prospective car buyers were questioned on many aspects of their experiences at the dealerships, from whether a salesperson smiled to whether they were offered a brochure to whether they planned to purchase a vehicle from that particular showroom.

Pied Pier analysts then used that information to evaluate how effectively a dealership sells cars, to compare particular sales processes to industry benchmarks and to identify deficiencies in certain brands. Each brand was then given a score as a factor of overall sales effectiveness, with a higher score meaning better sales rates, as well as a greater likelihood of brand-exclusive dealerships.

Nine of the 10 highest-scoring brands on our list are in the luxury category; Saturn is the lone exception. Only one of the luxury brands, Cadillac, is from an American automaker.

Fran O'Hagan, president of Pied Piper, says luxury brands are more effective with auto sales because their salespeople earn higher commissions per sale and are willing and able to devote more time and attention to individual shoppers.

Longo Toyota, a dealership near Los Angeles, for instance, is the largest dealership in the U.S. It sells more than 15,000 new cars a year, and shoppers there know that if they want to buy a Camry, they can choose from multiple colors and options and drive one off the lot that day. It's all about the transaction, O'Hagan says.

It's not so with luxury dealerships. "They attract a different type of person," O'Hagan says. "The visit may take two or three times longer than at Longo, but the salesperson is happy to devote that time. People who want to make their living selling Jags or Mercedes tend to be a different type than the people who make their living selling something at a higher volume."

Indeed, Agostini says his typical buyer has already bought two or three vehicles at the Cherry

Hill dealership, and routinely invites salespeople to dinner or to week-long vacations at beach houses nearby.

Changing the Face of Car SalesThe industry average for sales effectiveness has increased dramatically across all types of dealerships, according to Pied Piper, thanks to an economy that forces salespeople to be more vigilant on the showroom floor, O'Hagan says.

The nature of what a salesperson must be in order to close a sale, especially in the luxury sector, has changed, too. While it's still true that shoppers buy from people they like, salespeople are facing a much more educated and sophisticated buying public.

It's not enough to know the product--they've got to convince a prospective buyer that a

Mercedes, say, is better than a Lexus, when so much specific, in-depth information is widely available for both types of cars.

"Product knowledge is dramatically less important than it used to be," O'Hagan says. "It's much more [a question of] 'What can the salesperson do for me?'"

Come and experience the Saturn difference at Saturn of Greenville, Saturn of Asheville, and Saturn of Spartanburg.