Cadillac may offer more features to justify price of CTS sedan

Article by Christian Andrei, on September 8, 2014

Cadillac has seen sales of its redesigned CTS sedan fall 35 percent in August following a 29-percent drop in July. In fact, Cadillac dropped 18 percent in August in the US. This despite the presence of two known luxury car personalities tapped from other marques -- Uwe Ellinghaus of BMW and Johan de Nysschen of Audi.

Both are tasked to defend Cadillac from German luxury brands in the United States, and both understand why the marque is losing sales. Ellinghaus told Bloomberg in an interview that Cadillac may have been "too ambitious" in increasing prices on the redesigned CTS.

To justify that price to customers, Cadillac mulls adding features like heated seats. To raise its appeal to customers next year, Cadillac is making "significant changes" to the brand's marketing in the first quarter of 2015.

Ellinghaus remarked last month that while there is a “tremendous growth” in the car luxury segment, Cadillac is not capitalizing on that growth to the same degree hoped for.

He noted that price is “definitely an argument" when trying to capture target buyers who aren't yet considering Cadillac models. To further compete with its German rivals as well as trim its reliance on large trucks, GM is expanding its range of high-margin Cadillac cars.

Cadillac is getting ready to launch four new models in 2015, including a redesigned SRX SUV and a top-range car. The brand will also extend efforts to have independent dealers remodel their showrooms to convey a new brand image while placing more importance to partnerships with hotels and airlines.

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