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CADILLAC TO ANSWER RIVALS WITH SPORT-UTILITY VEHICLE.


Byline: John Hughes Associated Press

Cadillac is ready to go four-wheeling.

After generations of road yachts that carted grandpas to golf courses, Cadillac said Thursday that it will start selling a sport-utility vehicle next year to take on the Lincoln Navigator and the Mercedes M-Class trucks.

The General Motors division has been trying for years to appeal to younger drivers by redesigning its car models and most recently with advertising campaigns aimed at younger buyers.

``There are Cadillac customers today who have the means and inclination to try a sport-utility vehicle,'' said John F. Smith, the division's general manager and no relation to GM chairman Jack Smith.

Cadillac's first light truck in its 95-year history is expected to be a pricier version of the Chevrolet and GMC Suburban, which at 18 feet is the longest SUV on the road. Cadillac released few details about the new truck.

Company officials admit they were slow to recognize the surge in sales of luxury sport utilities and analysts say the late entry could make it tough to break into a market that some see starting to tail off.

Art Spinella, an analyst with CNW CNW - Canada News Wire (media service)
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 Marketing research, said a growing number of SUV drivers are trading in their behemoths for luxury and near-luxury cars.

``The problem really is being the last one to the dance,'' Spinella said. ``The only way anybody can keep the sport-utility market afloat is giving a load of incentives.''

But Smith said he expects luxury SUV sales to continue to grow. ``Do I think we're going to be late? I honestly don't think so,'' he said.
COPYRIGHT 1997 Daily News
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1997, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Title Annotation:BUSINESS
Publication:Daily News (Los Angeles, CA)
Date:Nov 21, 1997
Words:266
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