Cadillac cutting prices on its CTS sedan in the US by as much as $3,000

Article by Christian Andrei, on January 10, 2015

Cadillac has learned the hard way that increasing the price of its CTS sedan in the United States would be a bad thing – as it contributed to the luxury brand’s sales decline last year. While the overall luxury car market surged 6 percent, Cadillac dropped 7 percent last year.

That drop came after hiked the sticker price of the MY2014 CTS by between $6,000 and $15,000. Most MY2015 CTS models will have sticker prices trimmed by between $1,000 and $3,000, according to a memo Cadillac sent to dealers.

In the memo, Cadillac said it reduced CTS prices "after receiving feedback from both dealers and customers." Dealers have complained that the luxury carmaker is trying to price its newer entries head-to-head with market leaders BMW and Mercedes-Benz, which has discouraged some returning customers for the brand.

Cadillac dealer Howard Drake, also chairman of Cadillac's National Dealer Council, told Automotive News in an interview in December that the council was concerned of the pricing being too high. He remarked that their reservations were not alleviated by their sales performance.

He disclosed that only one nameplate had loftier prices sans incentives: the MY2015 Escalade SUV. In 2014, Cadillac saw US sales of the CTS drop 4 percent to 31,115 units, compared with a 3-percent dive for the midsize luxury sedan segment.

Rival models posted deeper decline like the BMW 5 series that dropped 7 percent to 52,704 units and the Mercedes E class that fell 5 percent to 66,400. However, the CTS had higher average incentive just to be sold at $9,213, according to research firm Autodata.

If you liked the article, share on:


Login or Create new account to add a comment!


Mitsubishi is now officially part of the Renault-Nissan alliance after Nissan took over the Japanese car company recently. We know a lot has been happening in the car industry, but...
by - October 24, 2016
Driving the newest 2017 BMW 5-Series (G30), Clive Owen (Closer, Children of Men) returns to his role as “The Driver”. In this latest installment, what initially starts as a simple...
by - October 24, 2016
Many had wished that a Lamborghini Huracán Superleggera would somehow make a surprise debut at the recently held Paris Motor Show. Sadly, not a single Lamborghini appeared anywhere in sight....
by - October 24, 2016
Aston Martin and Red Bull Racing teamed up for the first time in creating what looks like one of the most ferocious beasts in history. The British car manufacturer has...
by - October 24, 2016
German premium carmaker Audi is reportedly planning to buy back around 25,000 Audi Q7 SUVs powered by its 3.0-liter V6 TDI engine in the United States. The buyback should compensate...
by - October 24, 2016