When Cadillac began rejuvenating its brand with the CTS after “the Caddy that zigs” failed to raise the brand’s equity, the “Standard of the World” was considered a competitive vehicle and a good value. Over 10 years later, Cadillac’s trajectory is such that its cars go head-to-head against the Germans on all front, and its brand equity is such that it doesn’t need value as a selling proposition.
According to Businesweek, the Cadillac CTS sold for $54,571 on average for the month of March, which is about $1300 less than the Mercedes E-Class and about $1800 less than the BMW 5-Series. This illustrates that American consumers are considering Cadillac an equal alternative to the Germans. Interestingly, the previous-generation CTS from a year ago was selling for less than $44,000—or more than $16,000 less than its German rivals—although admittedly the previous CTS was straddling the line between 3-series and 5-Series competitors.
Sales volume is a different story, as Cadillac lags behind the Germans, but with the CTS garnering more profit per car sold and selling for prices on par with the Germans, it’s validation that Cadillac’s strategy is working and that General Motors doesn’t have to play second fiddle despite being the big bad corporate giant.