New Cadillac ATS May Cannibalize Current Generation CTS Sales
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As the product life cycle begins for Cadillac’s latest entrant, the sporty and compact ATS, analysts have quickly pointed out that it could eclipse a currently popular CTS model in showrooms.
The issue is not so much the difference in size as it is the pricing and fresh appeal. The new ATS, while also being the latest, hottest and most exciting vehicle from Cadillac since the launch of the current CTS in 2007, is priced within spitting distance — $2,820 cheaper, in fact — to its larger, older sibling.
“The ATS will draw some sales from the CTS. It’s inevitable because it’s a new vehicle versus an old one,” said Jim Hall, managing director of 2953 Analytics to The Detroit Free Press. “Conversely, some people who come in to look at the ATS may decide they want the bigger CTS. The ATS should bring in lots of new shoppers.”
It’s hard to argue with that. However, the CTS still has a few things going for it: multiple body style variants as well as the CTS-V and all of its respective variants. Seeing as the ATS is a new product, Cadillac is only offering it in sedan form for now — with expectations of at least a coupe version not far down the road.
At that point, the all-new Cadillac CTS should arrive with its proportions more in turne with the BMW 5 Series, and will thus most likely see its price elevated. When this happens, we can begin wondering how Cadillac will market the XTS and new CTS as they will probably be very similarly priced, as well as closely sized together.
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Better to have Cadillac do it than its competitors? and it’s not like it’s going to go on forever
“At that point, the new Cadillac CTS should arrive with its proportions more alike the BMW 5 Series”
As if the current CTS wasn’t as near a too damn close to the size of a 5?
Forget size, were talking market positioning, features, and price.
Auto cost inflation is on the rise.
It always has been inflating, just as everything else does. In this case, it is Cadillac moving upmarket to compete with BMW. The quality and luxury is improving along with the price.