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Cadillac May Need More SUVs To Tackle Luxury Vehicle Market

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There has been a sales explosion of luxury SUVs around the planet and every key global name in the car making industry has gone with the flow in order to meet the growing demand. In Cadillac's case however, the company had so far produced only two of its models as entries: the SRX midsize and the Escalade. The former is regarded as older than most of its rivals and Cadillac may have to produce a newer version such as a smaller SUV and a huge version like the Volvo XC90 and the Q7 which can accommodate seven or eight people. The Escalade may be regarded as a terrific vehicle but may not be enough to attract new buyers.

A previous report by Tech Times revealed that SUVs and Crossovers make up the highest percentage (at least 36.5 percent) of new vehicle registrations in the U.S. This is followed by sedans (35.4 percent) and pickup trucks (13.1 percent).

In Europe, sales of compact premium SUVs are speculated to reach over half a million for the first time in 2015. Currently, the Audi Q3 leads the pack with its record-setting sales of 76,078.

While the U.S. and the rest of the world wanted SUVs, GM's luxury brand, the largest in the U.S., doesn't seem to have something to offer.

"Cadillac is missing out on the SUV boom, except for Escalade," said Michelle Krebs, senior analyst at Autotrader. "Look at how many SUVs Audi, BMW, Mercedes have."

Each of the three manufacturers offers multiple vehicles in areas where Cadillac appears to be missing. Apart from the above-mentioned Audi Q3, other vehicles that show how Cadillac is missing a lot in the competition include the Audi Q7, the Mercedes GLA and GLE coupe, and the BMW X1 and X6.

"Cadillac has been at a disadvantage with only two SUVs," said Stephanie Brinley, senior analyst at HIS Automotive. "As Cadillac ultimately addressed the problem, it will generate a lot more sales prospective."

 Currently, the company's other models such as the ATS compact and the CTS midsize sedans are facing a huge challenge against rivals that are already established in the industry. While sales may grow, it is deemed to be a slow and a long-term process.

Additionally, the new CT6 is poised to compete with legendary models such as the Mercedes S-class, the Jaguar XJ, the BMW 7-series and the Audi 8.

Still, Cadillac has yet to offer newer SUVs in order to stay ahead of the rat race and claim leadership in a market where it has a big chance and is expected to succeed.

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