Cadillac ATS pricing gap shows brand edge of BMW

Article by Anita Panait, on August 6, 2013

Although executives at General Motors set the pricing of the Cadillac ATS at a level similar to the BMW's 3 series last year, it turned out that the GM model hasn’t commanded those prices at dealerships, according to research data by Edmunds.com. Through the first six months of 2013, the average transaction price on the ATS was $39,459, while for the 3 series the average transaction price was $44,764.

Research also showed that the Cadillac ATS had larger incentives at $4,088 per unit, compared to $3,555 per unit for the BMW 3 series. This pricing gap underlines the fact that BMW as well as other German luxury carmakers still possess competitive advantage against Cadillac, as its dealers have to lower prices just to make its vehicles more attractive to consumers.

Likewise, the pricing gap shows BMW's edge in brand cachet despite critical praise for the Cadillac ATS, Alec Gutierrez, senior market analyst of automotive insights for Kelley Blue Book, told Automotive News.

He said that the gap shows “what German engineering and the strength of the BMW brand is buying them.GM launched the ATS as a new nameplate in September 2012 was part of its bid to get a grip in the compact segment, considered as the largest category by volume in the luxury market.

GM has been vocal in its aim of enticing BMW customers, and has even cited 3 series in some Cadillac ads. According to Cadillac spokesman David Caldwell, ATS is achieving the goal of attracting new, younger consumers to the GM brand. He remarked that around 74 percent of ATS buyers are new to the brand while 20 percent of buyers are under age 35.

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