Back in July, Reuters (very incorrectly) reported that only one model will replace the Cadillac XTS, CTS, and ATS sedans. One day after, GM Authority confirmed that there will be not one, but two models that will serve as successors to the ATS and CTS. That same Reuters report, however, had another interesting detail: a supposed price reduction for the Cadillac CT6.
Specifically, the report states that “New versions of the CT6 sedan will be offered to customers who want a larger car starting at $50,000.”
Our initial reaction would be to discount the statement as careless reporting, given the misinformation related to the the amount of models that will succeed the ATS and CTS. Come to think of it, the CT6’s base price of $53,795 for the 2017 model year in the United States is somewhat close to the $50,000 figure mentioned in the report. But what if Cadillac is, indeed, planning on decreasing the price of the CT6?
If Cadillac is really planning on dropping the price of the CT6, then we can see that happening in one of the following two ways:
- Cadillac decreases the starting price of the CT6 by $3,795 on the base 2.0T model, with other trim levels also seeing similar cuts.
- Cadillac launches a new trim level below the existing base 2.0T, thereby rearranging the model’s trim level structure and introducing a new and decontended model with a lower starting price than even the current base CT6 2.0T.
Assuming that the Reuters report is correct about Cadillac plan to decrease the CT6 starting price point, the timing of the change is worthy of discussion. We posit that such a change could go into effect roughly one year from now for the 2019 Cadillac CT6, when the full-size sedan is expected to deliver a midcycle refresh with styling similar to that of the Cadillac Escala Concept.
The timing would make sense given that Cadillac’s other full-size sedan, the XTS, will be discontinued within two years, and Cadillac might be thinking of ways to transition XTS owners into the CT6 around that time. As such, a $50,000 starting price point for the CT6 might be a good way to transition existing XTS owners into the CT6. For reference, the 2017 Cadillac XTS starts at $45,595 and is in for a refresh for the 2018 model year (see 2018 Cadillac XTS).
Cadillac CT6 sales have been notably healthy since the sedan’s launch in the spring of 2017, accounting for 9,169 deliveries in 2016 – its first year on the market. In the first seven months of 2017, the CT6 sales tallied 6,287 units, putting it on track for roughly 11,000 sales during the full calendar year.
Sales Results - USA - CT6
Subjectively speaking, the results are positive for a few reasons, including that:
- The CT6 is recording sales gains in a sedan-down market as a result of customers choosing to buy crossovers at the expense of sedans
- The CT6 is the first Cadillac model to compete in the full-size prestige-luxury segment against such segment stalwarts as the Mercedes-Benz S-Class, BMW 7 Series, and Lexus LS. Hence, the CT6 does not have an established customer base but is instead selling to a new generation of Cadillac customers.
- The CT6 is competing internally for customers with the Cadillac XTS, the brand’s other full-size luxury sedan that currently undercuts the CT6’s price by roughly $8,000
Stay tuned as we learn more.