As it begins hitting up showrooms by April, the carmaker announced that the 2017 Cadillac XT5 base model bears a $39,990 sticker price. Compared to its predecessor, it is relatively more expensive by nearly $1,400. However, it is considerably cheaper than other popular luxury midsize crossovers.
The price difference between the XT5 and the SRX is quite overwhelming. The top-trim Platinum model with standard all-wheel-drive comes at $63,495 while the 2016 SRX is priced at $52,725 tops. Aside from the Platinum and the base model, the XT5 is also offered in other trims: Luxury and Premium.
The former starts at $45,890 while its SRX counterpart was priced at &44,635. The Premium model, on the other hand, starts at $53,890 and is more expensive by about $5,000 than the comparable SRX trim. Built on a new platform, the XT5 features an all-new 3.6-liter, V-6 engine that is said to be more powerful and fuel-efficient than the 3.6-liter engine of the outgoing SRX.
Other key upgrades include the new twin-clutch system, a speedier touchscreen CUE infotainment system, and an eight-speed automatic transmission.
The base model of the XT5 costs $2,000 cheaper than the Audi Q5, $3,000 cheaper than the Lexus RX (the lineup's best seller), $12,000 cheaper than the Mercedes GLE350, and over $15,000 cheaper than the BMW X5 base model.
However, the top-trim model of the XT5 is relatively more expensive than the top trim units of the RX, Q5, and GLE.
Cadillac President Johan de Nysschen's pricing strategy was to price introductory vehicles cheaper than German competitors, acknowledging that the brand is not established enough to compete dollar-for-dollar with the luxury vehicle giants.
This demonstrates a reversal of Cadillac's previous strategy of pricing new entries at the level of their German competitors, which was not effective as it turned off customers and dealers. Accordingly, dealers have started taking orders for the new XT5. The vehicle will be assembled at the Spring Hill plant of General Motors (GM) Company.