Cadillac VP divulges plan to create small SUV to rival BMW’s X3
By Jonathan, 11 Jan, 2012. 0 Comments
2013 Cadillac ATS
General Motors Co. is considering a small sport-utility automobile to rival the X3 of BMW, Cadillac's vice president of sales Kurt McNeil disclosed during the Detroit Auto Show. GM is attempting to increase sales for Cadillac with smaller vehicle models compared to those of BMW, which outperformed Toyota Motor Corp.'s Lexus in the U.S. luxury sales race in 2011.
GM is already targeting BMW with a small vehicle. Last Sunday, GM introduced the Cadillac ATS sedan to rival BMW's 3 Series and the Mercedes-Benz C-Class. A small premium SUV could build on Cadillac's gains from the larger SRX SUV, which boosted U.S. sales 11 percent in 2011.
BMW's refurbished X3 aided the automaker to displace Lexus, which had held the top position among U.S. luxury automobile brands for 11 years. GM has not decided yet on a small Cadillac SUV, McNeil stated, adding that the fact that the Cadillac is becoming "more of a global brand" will have weight in the decision. The sale of the new ATS sedan of Cadillac is set to begin in the third quarter.
Monthly lease prices have a major role in the sale of compact luxury vehicles, with Mercedes and BMW advertising deals for the C-Class and 3 Series as low as $349 and $299, respectively, on their websites in December. McNeil revealed that GM reduced Cadillac fleet sales by 33 percent in 2011 in line with an effort to boost the brand's resale values. [source: BusinessWeek]
Latest Auto Shows
