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The end of the prestige automobile - 8-4-2005
Machine Design Magazine ^ | 8-4-2005 | Ronald Khol

Posted on 10/19/2005 8:42:53 AM PDT by vannrox

Like so many people today, I work a second job to make ends meet. I write a column for a quarterly magazine called the Turbo Diesel Register, a special-interest publication for the owners of Dodge Ram diesel pickup trucks, one of which I happen to own. I provide this background to explain why I happen to know so much about 1950s Cadillacs, and why dumb marketing at Cadillac is so emblematic of the deterioration of the entire General Motors Corp.

For a recent TDR column, I found myself researching the early development of the Chrysler Hemi engine and the competitive environment in the automotive industry when the Hemi was introduced in 1951. One of the interesting things I learned was that the first Chrysler Hemi was two Chrysler V8s joined end-to-end used to power the XP-47H Thunderbolt fighter plane. The plane did 490 mph in level flight, but the advent of the jet engine ended development of the Chrysler aircraft engine.

Getting back to Cadillac, Oldsmobile and Caddie turned the automotive world on its ear when they both introduced overhead-valve, short-stroke, high-compression V8s in 1949. Though developed independently (and quite competitively within GM), the Olds and Cadillac engines ended up virtually identical, but with the Cadillac having a slightly larger displacement. Interestingly, given clean sheets of paper, Olds and Cadillac came up with the same answer.

Oldsmobile got the most publicity with its engine when it won the 1950 Pan American Road Race and cleaned up on the stock-car tracks. With that, Olds became the car that every teenage boy wanted his dad to buy. But Cadillac was actually the hotter car, and those in the know considered it the performance car of the time for races at the drag strip as well as at oval tracks.

It was not altogether surprising that GM management refused to promote Cadillac's performance. They reasoned that Cadillac was supposed to be the car for dignified rich people, and a hot-rod image was undignified. Nevertheless, guys in suits and fedoras driving Cadillacs regularly humiliated teenagers in their hopped-up Fords at the stoplight Grand Prix. In addition, the public was supposed to believe that people who owned Cadillacs walked into dealer showrooms and bought their cars by writing a check drawn from their petty-cash accounts. In all, the snob appeal worked. In 1951, the waiting period for delivery of a Cadillac was six months.

Where Cadillac went wrong was in eventually succumbing to the siren song of incessant sales growth, something that became increasingly difficult when energy crunches kept coming and going. As GM promoted credit purchases and leasing, Cadillac not only became the car of choice for CEOs, but also for pimps and smalltime neighborhood criminals. Even worse, the car eventually was priced where middle-class people could buy it. You began to see Cadillacs at K-Marts in addition to the country club.

Enter Mercedes-Benz with cars priced at up to twice what Cadillac was charging. All of a sudden, Mercedes became the car of choice for people who wanted to make a statement. Cadillac fell back to being an also-ran within reach of almost anyone who wanted one bad enough. In short, Cadillac management lost sight of the fact that they were supposed to be selling an exclusive product, not one that was expected to increase its sales every year.

Then BMW and Lexus joined the assault on the prestige market. But today I see all of these vehicles parked in the lot of my local discount drug store, often driven there by people living in Section 8 housing. There are a lot of vehicles priced in six figures today, but Rolls Royce and Bentley are just about the only ones that the average person recognizes as having exclusivity. For the most part, in a day with zero down, cash back, and easy leasing terms, there no longer is any such thing as a prestige automobile.

-- Ronald Khol, Editor
Send feedback to MDeditor @ penton.com


TOPICS: Business/Economy; Culture/Society; Editorial; News/Current Events; Philosophy
KEYWORDS: automobile; cadillac; car; company; market; marketing; mba; plan; price; sales
I really like this guys' editorials.
1 posted on 10/19/2005 8:43:05 AM PDT by vannrox
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To: vannrox

hehehehe a fellow TDR member, kewl :)


2 posted on 10/19/2005 8:47:40 AM PDT by taxed2death (A few billion here, a few trillion there...we're all friends right?)
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To: vannrox

Apparently.


3 posted on 10/19/2005 8:47:43 AM PDT by martin_fierro (< |:)~)
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To: vannrox
I like the comments in the editorial about guys in fedoras regularly smoking kids in hopped-up Fords.

My wife drives a Buick Regal GS, a car that looks every part the grandma-mobile (although she's only in her early 30s). Kids often come up to lights in their NOPI-type Japanese cars or low-end Mustangs attempting to blow her away. I've been in the car with her several times when this happens.

The look on their faces when my wife opens up the supercharged, 3.8 liter, 0-60 in 6.1 seconds engine is absolutely priceless.

Half the time she'll just take off without thinking about it with no intention of destroying egos and she'll still blow them off the line.

Give me good old American power any day.

4 posted on 10/19/2005 8:49:53 AM PDT by AlaninSA (It's ONE NATION UNDER GOD...brought to you by the Knights of Columbus)
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To: vannrox
I recall that one of my friends had a 55 Chevy that was hot. The word was that GM was not going to build cars that could dust of Caddies because the Caddy owners didn't like it.

Another remembrance was of the Oldsmobile 88 Rocket. It was a car that we kids lusted after, but could not afford.

Take a look at the specs of a 68 Cadillac as an example of the cars that the US could once build.
5 posted on 10/19/2005 8:51:18 AM PDT by Citizen Tom Paine (An old sailor sends)
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To: vannrox

My first car was a '52 Caddy (in 1960) and it was hot, plenty of great memories.


6 posted on 10/19/2005 8:53:39 AM PDT by ncountylee (Dead terrorists smell like victory)
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To: vannrox
Automobile-as-toaster is the future. Get used to it.

My wheels:

It don't get more toaster unless they cut slots in the roof!

7 posted on 10/19/2005 8:56:33 AM PDT by gridlock (Nature started the fight for survival, and now she wants to quit because she's losing... Monty Burns)
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To: vannrox
".... in a day with zero down, cash back, and easy leasing terms, there no longer is any such thing as a prestige automobile."

That's why I like to drive my Pierce-Arrow.

8 posted on 10/19/2005 8:56:48 AM PDT by Reo
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To: vannrox
there no longer is any such thing as a prestige automobile.

The big Mercedes and BMW's are still prestige and priced at levels only the truly well off can afford in the $70,000 up category. As for ultra prestige, try the Maybach

9 posted on 10/19/2005 8:57:51 AM PDT by 1Old Pro
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To: ncountylee

My dad owned a 56 Sedan deVille and weighed a couple tons but would cruise at 85 on Iowa Interstates (75 was the speed limit) all day. It was also quick off the line which was amazing for such a heavy car.


10 posted on 10/19/2005 9:03:55 AM PDT by Eric in the Ozarks (Troubled by NOLA looting ? You ain't seen nothing yet.)
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Comment #11 Removed by Moderator

To: vannrox

Rolls Royce became irrelevant when the british sold the company to the germans.

Even the super over done Maibach is more a statment of gulibility than opulance.


12 posted on 10/19/2005 9:30:16 AM PDT by longtermmemmory (VOTE!)
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To: vannrox

I'm not sure I buy this idea that the XP47H was powered by a V-16. Wasn't it powered by a radial engine?


13 posted on 10/19/2005 9:47:33 AM PDT by Sicvee (Sicvee)
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To: vannrox

please... there will always be status cars.
14 posted on 10/19/2005 9:51:59 AM PDT by Chode (American Hedonist ©®)
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To: F15Eagle
The Mitsubishi Lancer all decked out looks more like a pimp mobile for one of those Gansta Rap groups or maybe some drug dealing thug from East LA.

The kids here buy those slow and I mean slow four cylinder Japanese cars and put those huge and I mean huge tail pipes.

They make a lot of noise but my old 56 Plymouth with 318 and push button shift, dumps and seven inch slicks could put most of these kids to shame.

I believe that these big tail pipes are a sign of (MPI) Male Penis Inferiority.

When women do this it's just called (PC) Penis Complex.
15 posted on 10/19/2005 9:52:00 AM PDT by OKIEDOC (There's nothing like hearing someone say thank you for your help.)
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Comment #16 Removed by Moderator

To: Sicvee

The P-47H was powered by a Pratt & Whitney R2800 18 cylinder air cooled radial engine.

However, in the never ending quest for more speed, Republic and the Army did some testing with sleeker powerplants to improve aerodynamics by streamlining the engine cowl. Hence, the XP-47H designation for experimental.


17 posted on 10/19/2005 10:51:04 AM PDT by WmCraven_Wk
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To: vannrox

The author makes some excellent points but he should have mentioned the Cadillac Cimmaron, a spruced up Cavalier.


18 posted on 10/19/2005 1:38:19 PM PDT by Kenny500c (On a final note, some inflation is very positive)
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To: WmCraven_Wk
MOTOR TREND magazine published a beautiful pullout add for Chrysler car co. a few months ago about it's hemi- engine, on the back was a big cut away of the V-16 hemi-engine in a XP47. A real classic add . They could have sold for big bucks.
19 posted on 10/19/2005 2:08:32 PM PDT by G-Man 1
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