The resale value for the Cadillac CTS is projected to rise as the luxury brand adds the 2011 CTS Coupe to the line-up, according to the July/August estimates from ALG, an industry benchmark for residual values.

The higher projections are driven by lower incentives, tighter controls on inventory and an emphasis on design, as showcased in the all-new CTS Coupe.

The resale value for the 2011 CTS Sport Sedan after 36 months is projected to be 55 percent of the initial purchase price, about 9 percentage points higher than the projected resale value for the 2010 model, according to ALG. The projected resale value for the 2011 CTS Sport Wagon, compared to the 2010 model, also has risen about 9 percentage points to 54 percent of the initial purchase price.

The CTS Coupe, which began arriving at U.S. dealerships in July, has a projected resale value of 59 percent of its initial price. The CTS Coupe has been praised in early reviews for its dramatic design, staying true to a model that was named best concept car in the Eyes on Design Awards for the 2008 North American International Auto Show.

“Competitive products, innovative styling and a value driven pricing strategy are contributing to a resurgence of the Cadillac brand,” said Matt Traylen, ALG chief economist and client partner. “The introduction of the Coupe broadens the potential CTS customer base and elevates the Cadillac brand as a whole with emotional appeal, dynamic performance and enthusiast credibility.”

The projected resale values are the result of Cadillac’s long-term commitment to building the brand, said Don Butler, vice president of Cadillac marketing.

The SRX crossover, redesigned for the 2010 model year, has experienced a double-digit percentage increase in projected resale value in the past year.

“Cadillac continues to deliver products that stand out in the luxury market through bold design, exceptional performance and advanced technology,” Butler said. “The SRX has brought Cadillac style to the fast-growing crossover market. The CTS Coupe pushes design and performance even further on Cadillac’s award-winning CTS line.”

Cadillac’s Lansing Grand River Assembly Plant has begun production of the 2011 CTS Coupe and started shipping models to U.S. dealerships ahead of schedule. The all-new CTS Coupe has a starting price, including destination charges, of $38,990.

The CTS Coupe joins the CTS Sport Sedan and CTS Sport Wagon, an award-winning line that has been named to Car and Driver’s 10 Best list for three straight years. All three CTS models and the Cadillac STS sedan are made at Lansing Grand River Assembly.

Lansing Grand River Assembly team members spent months preparing for the launch of the CTS Coupe to ensure the highest levels of quality, said Plant Manager Scott Whybrew. Lansing Grand River Assembly topped all U.S. plants in the 2010 J.D. Power and Associates Initial Quality Survey. The CTS ranked among the top 10 of all vehicles in the quality survey.

While the CTS Coupe joined the existing CTS family, the Coupe’s dramatic design called for many unique parts and processes. The Coupe has a lower roofline, shorter overall length and wider track, providing a more aggressive stance and athletic profile. Lansing Grand River team members ensured the CTS Coupe had the same high standards as the other Cadillacs built at the plant, Whybrew said.

“We have very experienced assemblers at Lansing Grand River,” Whybrew said. “They work hard to make sure each vehicle meets the levels of quality and craftsmanship expected in a Cadillac. We want customers to feel as much pride in owning a Cadillac as we do in building them.”

The launch of the CTS Coupe has added excitement to Lansing Grand River Assembly, said Mike Green, president of UAW Local 652. The plant launched the first CTS almost 10 years ago. It expanded the CTS line to include the CTS Sport Wagon last year.

“It’s nice to add a product that gives consumers another choice, especially one such as the Coupe that’s been getting such rave reviews,” Green said. “The Lansing Grand River team members deserve a great deal of credit for making the Coupe a reality.”

The CTS Coupe won the Eyes on Design concept award at the 2008 North American International Auto Show. Autoblog described the production model as “audacity in motion.” Car and Driver wrote that the 2011 CTS Coupe added “more style and a higher concentration of performance to the CTS’s winning formula.”

Cadillac has selected Fallon as its new creative agency of record. The Cadillac account has been handled by Bartle Bogle Hegarty (BBH) since January.

“Cadillac products today compete head-to-head with the best in the world. Fallon’s deep, 17 year experience with other luxury automotive brands like Porsche and BMW makes them a perfect fit for our flagship brand,” said Joel Ewanick, vice president, U.S. Marketing.

“We look forward to working with Fallon to illuminate Cadillac as the new 'Standard of the World,’” said Don Butler, vice president, Cadillac Marketing

Cadillac reported U.S. sales of 11,788 vehicles in June, a 39 percent increase from the same month last year and the fifth consecutive month of year-over-year sales gains. Through the first half of the year, Cadillac sales are up 33 percent compared to the first half of last year.

Cadillac posted strong results in June in key markets across the United States, including retail sales increases of 50 percent or more in New York, Los Angeles, Dallas, Miami, Atlanta, Tampa, Orlando, and Denver.

The SRX mid-size luxury crossover remained in high demand as sales rose 462 percent to 3,804 in June. Redesigned for the 2010 model year, SRX has led its segment in the past year in increases for both sales and projected resale value. June was the fifth best sales month ever for SRX and second best retail sales month ever.

CTS sales rose 31 percent to 4,193, recording its best total sales month of the year and best retail sales month since March 2009. The CTS line, which includes the CTS Sport Sedan and Sport Wagon, will be expanded this summer with the all-new 2011 CTS Coupe.

CTS recently placed in the top 10 vehicles of the 2010 J.D. Power and Associates Initial Quality Survey, which ranks vehicles based on fewest problems in the first 90 days. Sales for Escalade, which ranked first in its category in the J.D. Power and Associates IQS survey, rose 6 percent over June 2009.

Cadillac also recently announced that for owners of all 2011 models it will provide Cadillac Premium Care Maintenance. The new program covers scheduled oil changes, tire rotations, replacement of engine and cabin air filters and multi-point vehicle inspections for the first four years or 50,000 miles.

“Cadillac has been well-positioned with SRX and CTS to win over luxury buyers as they return to the market,” said Kurt McNeil, vice president for Cadillac sales and service. “We expect the trend to continue with the launch of CTS Coupe and addition of Cadillac Premium Care Maintenance. We’re strengthening the line-up with a distinctive new vehicle and elevating the brand by providing owners with a long-term commitment to customer service.”

The CTS Coupe already is attracting attention. Car and Driver has named the CTS to its 10 Best list for the past three years and praised the CTS Coupe in an early review.

”For 2011, the new CTS Coupe joins the sedan and wagon, adding more style and a higher concentration of performance to the CTS’s winning formula,” Car and Driver wrote in a June review. “The CTS Coupe is one of those cars that love the camera, and it’s no less stunning in the flesh.”

Cadillac announced today it will provide owners of all 2011 models with frequently required maintenance services for the first four years or 50,000 miles as it seeks to build the best customer service experience in the luxury segment.

The program, called Cadillac Premium Care Maintenance, covers scheduled oil changes, tire rotations, replacement of engine and cabin air filters and a multi-point vehicle inspection.

“Cadillac is adding Premium Care Maintenance as a way to extend customer service beyond the sale,” said Kurt McNeil, vice president of Cadillac sales and service. “The program is designed to raise satisfaction for owners by ensuring access to expert service. It should lead to higher loyalty rates for dealers by establishing them as a valued resource for our customers.”

Cadillac Premium Care Maintenance launches with the arrival of the 2011 model Cadillacs. The CTS family, which is being expanded this year to include the all-new CTS Coupe, will be the first of the 2011 models to arrive at U.S. dealerships in late summer.

Premium Care Maintenance is the latest in a host of Cadillac initiatives that elevate the luxury ownership experience. It joins other Cadillac customer service and ownership benefits including:

Five-year, 100,000-mile Powertrain warranty along with standard 24/7 Roadside Assistance and Courtesy Transportation.
Four-year, 50,000-mile vehicle bumper-to-bumper warranty coverage.
Standard one-year OnStar Directions and Connections plan, which includes Automatic Crash Response, Turn-by-Turn Navigation, Vehicle Diagnostics and Stolen Vehicle Assistance.
Standard XM Radio with a three month trial.

In 2009, Cadillac placed second in the industry in both the Sales Satisfaction Index and Customer Satisfaction Index studies from J.D. Power & Associates. A survey by AutoPacific of 2010 new vehicle buyers rated Cadillac No. 1 in total satisfaction.

“Cadillac rates among the industry’s best in customer satisfaction, but we have room for improvement,” McNeil said. “Cadillac Premium Care Maintenance is another step in our goal to set the standard for the industry in customer service.”

The Cadillac CTS placed in the Top 10 of all vehicles in the J.D. Power and Associates Initial Quality Study (IQS), and the Escalade received top honors in the Large Premium Crossover/SUV category.

Cadillac continues to gain recognition for its focus on building high-quality luxury vehicles. The Escalade won the large premium SUV/crossover segment with 92 problems per 100 vehicles.

Cadillac also took leadership honors in the manufacturing portion of the study. The Lansing (Mich.) Grand River assembly plant was the only U.S. plant to be recognized in the study. The plant, which produces the CTS Sport Sedan, CTS Sport Wagon and STS, received a Bronze Plant Quality Award. Lansing Grand River is adding production this year of the all-new 2011 CTS Coupe, which is being launched in late summer.

The CTS family placed third among premium entry cars with 77 PPH.

The J.D. Power study measures the number of problems consumers experience during the first 90 days of vehicle ownership. The study results also influence consumer vehicle purchase decisions.

“Cadillac is honored to have the CTS place within the top 10 vehicles in the J.D. Power Initial Quality Study,” said Don Butler, vice president of Cadillac marketing. “It’s a double honor to have the home of the CTS recognized for the team’s attention to building in the best quality, even as we added the CTS Sport Wagon and prepared for the CTS Coupe.”

Cadillac has seen demand for its vehicles steadily rise this year, with deliveries up more than 32% through May.

“Cadillac’s resurgence is built on the back of great products like the CTS and Escalade, and J.D. power’s recognition of our efforts is an important milestone,” Butler said.

Since its debut last year, the all-new 2010 Cadillac SRX has posted the largest gains in its segment for both sales and projected resale value, establishing SRX as a leader among mid-size luxury crossovers.

SRX total U.S. sales through May have risen almost 500 percent, compared to the first five months of last year, outselling the Mercedes-Benz M-Class, Audi Q7, BMW X5 and Acura MDX. The average transaction price for the new SRX is more than $2,300 higher than the previous model.

Along with the sales and transaction price increases, SRX’s projected resale value has risen 17 percentage points in the past year, the largest gain in its segment. SRX’s projected resale value after 36 months is 48 percent of the initial purchase price, compared to 31 percent for the previous model, according to the May/June forecast by ALG, an industry benchmark for residual values and depreciation data.

“Cadillac has done all the right things to support higher residual values for the SRX,” said Matt Traylen, ALG’s Chief Economist. “The all new 2010 model is substantially improved, but was launched with a significantly reduced MSRP. This resulted in record low incentive spending for the SRX, lower reliance on fleet sales, a quicker turn time on dealer lots and ultimately a positive impact on brand value.”

The SRX has remained in high demand since its launch last summer, said Kurt McNeil, vice president of Cadillac sales. The 2010 SRX delivered bold design to the fast-growing mid-size luxury crossover segment, he said.

“Residual value is a key indicator of the strength of the new SRX,” McNeil said. “SRX has succeeded by offering distinctive styling, great handling and a host of features that help it stand out in the luxury crossover crowd.”

Offered in all-wheel and front-wheel drive versions, SRX comes standard with a 3.0L direct injected V-6 engine. It has an optional 2.8L turbocharged V-6. SRX’s available features include a cargo management system, pop-up navigation screen, adaptive forward lighting that swivels the headlamps in synch with vehicle steering, integrated hard drive for audio storage and pause-and-replay radio and a dual-screen system for rear entertainment.

Auto giant General Motors has recalled more than 1.3 million vehicles in the United States over fears that an electrical fault could cause them to catch fire, US government documents showed Tuesday.

The problem, linked to the vehicles' windshield wiper fluid system, affects at least 18 models ranging from Chevrolet trucks to Hummers, documents from the National Highway Traffic Safety Administration showed.

GM's Buick, Cadillac, and GMC brands are also affected, particularly high-end SUVs and pick-up trucks.

In a letter to customers and US watchdogs, GM -- which received a massive government bailout to stay afloat -- said many of the models had already been involved in a 2008 recall linked to possible electrical shorting.

"However, there have been new reports of thermal incidents," GM said.

The Detroit, Michigan based firm said the new incidents resulted from a flaw in fluid systems' heat insulation.

The incidents ranged from "minor distortion to considerable melting of the plastic around the... fluid chamber."

"In rare circumstances, it is possible for the heated (windshield) washer module to ignite."

At least four fires are thought to have occurred.

GM first notified the US government of potential problems in September 2009, but could affect models dating back to 2006.

In a letter to customers, GM said it would fix the problem "at no charge" and give a "satisfaction payment" of 100 dollars from dealers, spelling a potential payout of more than 136 million dollars for the firm.

The recall is a body-blow to the firm, which is fighting to escape from the shadow of a high-profile bankruptcy.

GM entered a government-backed reorganization on June 1, 2009, with liabilities of 172.8 billion dollars.

The company emerged from bankruptcy on July 10 with 48.4 billion dollars in debt.

In May, the firm saw a quarterly profit for the first time in three years on the back of a jump in sales and cost-cutting measures.

The carmaker said that sales of four brands it retained following restructuring -- Chevrolet, Buick, GMC and Cadillac -- rose 31.8 percent from May last year.

Cadillac reported today U.S. total sales for May of 12,328, a 54 percent increase compared to the same month last year and the fourth consecutive month of year-over-year increases. For the calendar year, Cadillac total sales were up 32 percent over last year.

Cadillac posted its best month of the year for both retail and total sales volume.

Cadillac’s retail sales for May, compared to May 2009, increased more than 100 percent in the Miami, Atlanta, San Diego, Pittsburgh and Detroit area markets.

SRX sales rose 654 percent for May, compared to the same month last year, for its ninth straight month of triple-digit percentage total sales increases. Redesigned for the 2010 model year, the SRX mid-size luxury crossover had its best month of the year.

CTS total sales rose 20 percent in May, recording its highest total sales volume since December of 2009. The results come as Cadillac prepares for the launch of the CTS Coupe in August. The Coupe will join the CTS Sport Sedan and CTS Sport Wagon to expand the award-winning CTS line.

“Cadillac is getting stronger as the year progresses,” said Kurt McNeil, U.S. vice president of Cadillac sales. “SRX has quickly become a leader among mid-size luxury crossovers. CTS Coupe will put Cadillac design and performance in a dramatic form that’s expected to attract new luxury car buyers to the brand.”

Car and Driver magazine recently named CTS to its “10 Best Cars” list for the third straight year. Cadillac also took top honors for the third straight year in the 2010 AutoPacific Vehicle Satisfaction Awards, which use feedback from new car and truck owners to rank vehicles and brands. Escalade ranked first in the Luxury Sport Utility Vehicle category of the AutoPacific awards.

Cadillac was selected as the top brand in overall vehicle satisfaction in a survey of new vehicle buyers released today. AutoPacific’s 2010 Vehicle Satisfaction Awards, generated from the experiences of actual new car and truck owners, named Cadillac as Top Brand for the third consecutive year.

The Vehicle Satisfaction Award (VSA) objectively measures how satisfied owners are with their new car or light truck. It reflects the opinions of more than 42,000 consumers nationwide.

“This award has special meaning for Cadillac because it’s based on customer impressions,” said Don Butler, vice president for Cadillac marketing. ”Cadillac’s third-straight ranking at the top shows that we are consistently meeting and exceeding the expectations of the people who know our products best.”

In addition to Cadillac’s overall award, the Cadillac Escalade was the VSA category winner in the Luxury Sport Utility segment. It also was the third straight year that Escalade topped its category.

AutoPacific’s research measures owner satisfaction across specific areas related to a vehicle's operation, comfort, safety and the overall purchase/lease experience. The 2010 ratings reflect input from buyers and lessees of new vehicles acquired September through December 2009. AutoPacific is an automotive market research and consulting firm that publishes a variety of studies annually on the industry.