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

Article by Christian A., 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:

Comments

Recommended

As seasons change, temperatures rise and fall. The changes affect our preferences when it comes to driving cars. Therefore, Aston Martin introduces the new DB11 Volante or convertible, and it...
by - October 16, 2017
Aston Martin may be known for building many of the stylish Bond cars we see on the big screen but nobody really knew how it can get super aggressive when...
by - October 16, 2017
Today, manual transmissions have become rare in mainstream cars and are more commonly found in performance cars within the $20,000 to $40,000 range. However, the selection of affordable, three-pedal performance...
by - October 16, 2017
We expected to see the BMW i8 Roadster at last month’s 2017 Frankfurt Motor Show, but it never made an appearance. So the question on fans’ lips now is when...
by - October 16, 2017
Jaguar has just released the first official image of its newest offering, the new Jaguar XEL. Essentially the long-wheelbase version of the Jaguar XE compact sedan, the new Jaguar XEL...
by - October 14, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries