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

There have been no straight six-cylinder engines at Fiat Chrysler Automobiles since 2007, when Jeep launched the Wrangler JK generation. While Chrysler had been using straight six-cylinder engines since 1964,...
by - September 19, 2018
Mercedes-AMG’s GT 4-door Coupe models now have a new member, in the guise of the AMG GT 43 4MATIC+. This new model is AMG’s newest entry-level offering, with a price...
by - September 18, 2018
It is better not to expect any new diesel engines from Cadillac, the luxury vehicle division of General Motors. After all, following much considerations of a number of factors, the...
by - September 18, 2018
BMW Group has a grand plan to launch 25 new electrified vehicles by 2025. Twelve of these will be full electric vehicles (battery EVs), including a new electric SUV that...
by - September 18, 2018
Using cameras to replace the rear and side mirrors isn't something new. However, this technology is usually found on concept vehicles and some exotic cars. But at Lexus, this technology...
by - September 17, 2018