It turns out that GM can’t build the Cadillac Escalade fast enough, as the huge demand has increased sales in January by 149 percent over last year. The opposite is happening with both the ATS and the CTS though, with Cadillac dealers offering huge discounts in order to get rid of old stock.

To give you an idea, a Seattle dealer is offering 2014 Cadillac ATS models at up to $12,000 off a sticker price that starts at $33,215 MSRP, while others are cutting as much as $17,500 off the sticker price for a 2014 CTS, which officially starts at $45,345 MSRP. On the other hand, the 2015 Cadillac Escalades – which start at a hefty $72,970 MSRP – are flying off the lots.

The GM truck factory where both the Escalade and its ESV version is manufactured alongside Chevrolet and GMC models, has been running on three shifts and weekend overtime for several months to keep up with the demand. That said, it seems that the ongoing plan of rebuilding the Cadillac brand may have encountered hiccups, as the hot-selling Escalade is not enough to increase the carmaker’s prestige and overall sales significantly.

Click past the jump to read more about Cadillac’s predicaments.

Why it matters

Cadillac’s current problems don’t bode well for the brand’s near future. Despite the fact that both the ATS and the CTS are somewhat new models, and are in many areas equal to their German rivals from Audi, BMW and Mercedes-Benz, the carmaker first needs to change its current brand image before competing one-on-one with the imports.

Part of its bad image also comes from Cadillac models having some of the lowest residual values in the luxury segment. Combining that with huge discounts on dealer lots severely cheapened the brand’s appeal compared with its premium rivals from across the pond. Fortunately, Cadillac may live to see brighter days if its upcoming compact lineup turns out to be as good as envisioned, especially if combined with a true halo model in the shape of a large RWD sedan or coupe.

Cadillac Escalade

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Source: Automotive News

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