Retail

Costco Will Sell Cadillacs

Costco has a service that helps its members save money on cars. The latest nameplate to enter the program is Cadillac.

General Motors, Cadillac’s owner, was the top car company in America based on sales in 2022, when its figure reached 2,274,088, up about 3%. Cadillac has not done so well. While its sales rose 12.9% last year, they only reached 134,726. That trails market leaders Mercedes, BMW and Lexus considerably. It needs programs like Costco to help. (See which cars have been completely redesigned for 2023.)

The Costco Auto Program added the Cadillac Limited-Time Special. This includes the 2022 and 2023 Cadillac CT4, CT5, XT4, XT5 and XT6. Costco’s management said of the deal that between “Jan. 4 and Feb. 28, 2023, they can combine a $1,000 member-only incentive with all manufacturer incentives they qualify to receive.” Sales of the XT6 and XT5 fell last year. Sales of CT4 and CT5 jumped.


It is hard to understand why Cadillac would use the Costco program. Perhaps it will help gain market share over its larger rivals. Any help Cadillac can get would be important.

Cadillac has done so poorly over the past two decades that it will take a miracle for its sales to come anywhere close to the market leaders. It has too few models, among other things. Quality has been an issue. In the Consumer Reports “Which Car Brands Make the Best Vehicles” report, Cadillac ranked near the bottom.

Costco will help sell Cadillacs, but will there be many takers?

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