Why Cadillac Struggles to Match Mercedes and BMW in U.S. Prestige

This question came up when I saw Cadillac trying to make a comeback with the Celestiq and some other pricey EVs. I mean, for decades now, it has felt like most people don’t really get Cadillac anymore—even in the U.S. A lot of folks prefer European cars over Cadillacs, and that’s one of the reasons the brand’s been slowly fading. In 2024, Cadillac probably sell around 100K cars, while Mercedes can hit 300K a year in the U.S. That’s kind of weird, especially since Cadillac is supposed to be a classic American brand. So what happened?

I think it started back in the 1980s, when people in the U.S. began losing interest in big cars. Japanese automakers came in with smaller, more affordable, fuel-efficient cars, and Cadillac tried to keep up—but it didn’t go smoothly, and their reputation took a hit. That’s when Cadillac kind of faded into the background, even though they’re now trying to make a comeback. Basically, they tried to evolve with the times but didn’t always stick the landing.

The main issue? They went smaller. In the '80s, Cadillac started making smaller cars, probably to stay relevant as Japanese imports were blowing up. Japanese cars were mostly compact and fuel-efficient—exactly what people wanted when gas prices were climbing. Big, gas-guzzling Cadillacs didn’t make as much sense anymore. On top of that, new regulations were cutting engine performance. I still don’t get why Cadillac built a 500ci V8 that barely made 200 horsepower. Even when they bumped it to 235 HP, it still felt weak for such a massive engine—but yeah, emissions rules were killing power back then.

I also read that Cadillac’s quality slipped in the ’80s, but people still bought them for a while. They were still seen as luxury cars, but eventually, buyers started leaning toward brands that made more sense—why put up with the hassle of maintaining a struggling American luxury car? So Cadillac started to lose ground, especially as European brands kept getting better. It feels like Cadillac eventually figured that out—but maybe a little too late.

If you look at history, European carmakers really only started making a splash in the 1950s—especially since Germany was just getting back on its feet after WWII. Back then, European cars were kind of ugly, and honestly, they weren’t built with American roads or tastes in mind. But over time, I think Americans started warming up to them because they felt cooler and more relevant. In '80s movies, you'd start seeing people driving Mercedes or other European cars—they had this exotic, upscale vibe. Basically, "European car" became shorthand for something stylish and different, which helped boost their appeal in the U.S.

If I were in the U.S. and had to choose between a Mercedes R107 and a Cadillac from the same year, I’d probably go with the Mercedes—it just feels cooler and more in step with the times.

Cadillac, on the other hand, never really took off outside the U.S. Yeah, they had some market share in the '50s and '60s when American cars were globally popular, but that didn’t last. By the '70s, wealthy buyers around the world were leaning toward European brands, and Cadillacs became a rare sight. That probably happened because Cadillac didn’t build much of an international presence, while European brands did—and the more people saw them, the more familiar and desirable they became. That’s probably why so many people now go for Mercedes or BMW over Cadillac. In some places, folks might not even recognize the Cadillac name.

Still, Cadillac has evolved. They once owned the luxury market, but over time they lost ground—especially to the European brands. Their prestige slipped, and buyers started looking elsewhere for luxury. I think that’s where things went off track, and now Cadillac’s trying to make a comeback. They seem like they’re putting in the work to stay competitive with the Europeans. It won’t be easy, but I do think they still have a shot in the U.S. market. There are definitely still people out there who believe in the brand.