From the recent words coming from Cadillac VP of marketing Don Butler, the world should expect the next-generation CTS to close the $8,000-odd gap between the current model and the more expensive BMW 5 Series. The new CTS is expected to be unveiled during the 2013 North American Auto Show, as a 2014 model and will be a global car.
The price hike is not unwarranted, as the new CTS is expected to come with more size, power, refinement and technology to squarely compete with the best in the D/E-segment of luxury automobiles, featuring leaders such as the 5 Series and Mercedes-Benz E-Class.
In a report from Automotive News, Butler stated that it’s part of Cadillac’s strategy to earn more credibility in the luxury segment by pricing and contenting vehicles to better match its rivals. However there are still plans of undercutting the competition, but not to a degree that was seen in the past.
“We want to be competitive, but I don’t want to be in a position where in a sense I’m bribing consumers to experience our product,” Butler said.
So, who is willing to throw out an estimate? $42,000? $45,000? $49,000? Sound off in the comments below.
Comments
$42,995 to $58,500 – not including V of course. That’s my guess. I’m thinking they would still stagger it below the XTS, and I have not looked at BMW’s figures. Think they’ll leave the 2.0T at 272/260 or will they up it? It’ll have a larger car to pull around than the ATS and current gen CTS.
They’d better if they want it to be neck and neck with the 5 series (of course, with upgrades as well)
People who want a Cadillac by a Cadillac especially for the attractive price. They are drawn to Cadillac for certain features style and partially price. It was one big advantage they had over their rivals. Now by their logic since their cars are rivaling the best the Germans have to offer we should increase the price to equal the Germans. They talk about prestige, and that you have to pay for it. Well in that case folks I rather buy a BMW or a Mercedes-Benz If we are just talking about prestige here. For the value I would’ve bought a Cadillac.You just lost a customer GM What a really stupid move…
In that case a base Corvette should be priced to match a base Porsche 911 or a Viper
by GM’s logic but you don’t see a 82,100 dollar sticker on a Corvette do you? nope its 49,600, and aside from the automatic Germanic prestige tax they are natural competitors perhaps the new Corvette will bring up the quality to match the Germans and Italians, but I guarantee you wont cost the same as the European rivals.
Prestige is something that is cultured nurtured developed, through experience recognition of its worth and merits and time, and yes through cost. Just because something is expensive doesn’t mean it’s automatically prestigious. My Seiko watch can tell time just as well as a Rolex and is a fine piece of Engineering in its own right.
and it’s a hell of a lot cheaper and in my opinion better…
So GM your gonna pay with the big boys huh? good luck…
“Prestige is something that is cultured nurtured developed, through experience recognition of its worth and merits and time”
“Prestige” doesn’t exist. Ever.
The word you really should have used is “public image”. Public image is something that is “cultured nurtured developed, through experience recognition of its worth and merits and time”.
Cars are pieces of engineering, not grandfather clocks made by wood workers.
Actually brand equity is an even better term than public image.
What is a brand name worth? And you price accordingly.
IF Cadillac truly makes a competitive CTS (they have with the ATS) then they should start the pricing formula even with the 5 series and then drop from there the amount the BMW equity is worth. Just guessing but I would bet it is around 10%.
So a 5 series is $53k base (V6). Make a comparably equipped CTS $48K. That is an $8000 jump from today. However the $53k 5 series today has a lot more content than the $40k CTS so you need to figure the extra content and delete that from the$8k price.
Golly that sounds complicated. Hope I made sense.
“Prestige refers to a good reputation or high esteem”
Prestige does in fact exist. Just because it’s an Intangible word Doesn’t mean it does not.
And original hand made grandfather clocks are an Incredible piece of engineering as well.
Woodworkers don’t make the Working internals of the clock but display impressive engineering skills to build the case. And at one point back in time it was prestigious to have one..
Match German quality??? Current CTS is better quality then almost all German cars, yes German cars have great image and great performance and few more options, but quality? No! Things wear out quickly, load of electronic problems, suspension, etc. if I throw a number, I say that 80% of German cars don’t pass the 100k mile mark without major repairs these days. I’m not talking about old German cars, 10 year and newer.
They will play w the big boys .. they have all it takes already, the new ats is already one of the most acclaimed cars of the year, its competitve to ths germans n has the bmw 3 series by the balls, the a4 and c class don’t even compare, its won 3 car of the year awards and its one of two (chevy camaro) cars to pass every crash test with a perfect 5 out of 5 score in every category since the tests were changed in 2011.. the cts will be a bit larger version w some different styling n a new engine, so yea they have.what it takes to play w the big boys.. its not.a chevy trying to compete in ths luxury segment its a luxury brand doing what it should be doing designing quality well engineered competitive vehicles..
Archangel, home run… You nailed this… For me GM vehicles bring value for the $$$… Cadilac especially… Paying top $$$ for a V series ok we get that… And then there is consumer perception, Cadilac does not have the reputation to price a CTS at the same level as say a 5 series… Anyway, want to believe… Hopefully Iam wrong, GM prove us wrong… Blow our minds with the next CTS…
But GM does not want to be the “value leader” in vehicle sales. They want their ATP’s to match the competitors they compete with.
But as I said earlier even if they have exactly the same vehicles as the competition the brand equity needs to be the same as the competitors to get the same money. And today they are not. The BMW name on the trunk is worth more than a Caddy crest. So Caddy needs to figure out what the difference is and take that off the MSRP.
HOWEVER with great product the brand equity will increase and they can close that MSRP gap over time. Hopefully with products like the ATS that will happen quicker than some of the comments feel here.
They will blow us away just like they did with the ats.. the new cts will be a little bigger sized against the e class n 5 series, lighter for it uses the ats alpha platform, magnetic suspension, up to date good high quality interior the cue system shit ton of safety equipment cleaner styling, 8 speed transmissions, and a new twin turbo v6 to match the e550 and bmw 550 v8 power and fill the 200 hp gap between the current 3.6 and v series .. sure it will be worth every penny
If Cadillac wants to play with the big boys then they will have to price accordingly or else they will be considered grouped with the second tier luxurys as Acura, infiniti, Lexus……..GM knows what they are doing people…..pricing it less then the 5 series, I am saying around 41,995 is exactly were this new CTS should be…..moving onto a new platform, much plusher interior, better engine options…..it should cost more ! This CTS is going to be lighter as well probably around 3800 lbs (+-50 lbs) which will out run the portly 5 series (4200 lbs.)….stop talking about brand prestige and see what CTS is worth….cause your getting a lot more then what prestigiousness will ever get you.
I don’t think that Cadillac has “prestige” by offering lower priced luxury cars; it’s certainly not something that I think Cadillac should advertise, or be remembered by.
When anyone says “The CTS is better because it costs less”, in the context of luxury cars, you get the distinct impression that the CTS is a “budget Cadillac”. Undercutting it’s primary market targets much like Kia.
Kia has the Optima which has loads of features and goodies at an attractive price. Still, not too many people want to be associated with Kia. I fear the same will happen with lower-priced Cadillac’s, a public image of affordability when a Cadillac SHOULDN’t be affordable.
Yeah, the days of the $199 per month CTS lease NEED to be long gone. They are de-valuing the “Best American Luxury Sedan,” according to Motor Trend. I know its an ad, and out the door with a GM discount is more like $350-400, but I have seen so many 2-3 year lease returns and some of those people will never lease a Caddy again because they can’t afford more than a $350 payment with little down. Also, their CTS they were returning was a base with no heated seats, remote start or park assist. Joke of a vehicle. At least they have ditched that trim level for 13. People should expect a $400 minimum payment on this new CTS if it wants the credibility of a 5 series direct competitor.
“Cadillac”, historically, was associated with the pinnacle of any given product. “This Stratolounger, here, is the ‘Cadillac’ of recliners. Feel how luxurious… Look at all these features.”
Then along came a band of MBA-types that saw Cadillac as just another name plate. With complete and utter disregard for the 60+ years of exquisite Cadillac reputation – PRESTIGE – preceding them, they thought they could develop and produce vehicles as if they were dishsoap and took unholy liberties with the product line and gave us hits like the Catera and the Cimmaron.
The introduction of the CTS demonstrated that there were still car-people left within the ranks of GM that understood what it meant to “be a Cadillac”. While the original CTS was absolutely eye-catching gorgeous and not perhaps the pinnacle of anything else in particular on a global-level, it was certainly a rebirth for Cadillac. It most definitively left Lincoln in the dust – that’s for damn sure.
GM needs to, with the forthcoming Alphas, throw down the gauntlet with the European brands (+ Lexus) that made in-roads in the US market primarily because of a handful of non-automotive malcontents at the old GM that left the gates wide open while in pursuit of metrics.
Yes – there needs to be a $90,000+ flagship Cadillac on the top shelf at the dealership to pull people out of their A8’s and 7-Series. Spoil the hell out of the customers that buy them. Make Cadillac, once again, the center of conversation at the dinner party.
Meanwhile, there is still a place in the market for luxury with attitude that doesn’t break the bank. There is nothing wrong with Cadillac bumping up the price point if the customer, ultimately, sees it or sits in it, or drives it for the first time and says smiling almost sinisterly, “It will be mine… Oh yes… It will be mine.”
“Meanwhile, there is still a place in the market for luxury with attitude that doesn’t break the bank.”
It’s called Buick.
If you’re worried about “breaking the bank” when you’re pricing a Cadillac, you’re shouldn’t be looking at Cadillac in the first place.
Brand Equity, definitely the word I should have used…
Buick, while it meets the criteria for “affordable luxury”, lacks attitude, thus occupies a different space than Cadillac. But I see what you are trying to say.
That place in the market is held by Infiniti and Acura.
It was also going to be held by Pontiac as the sporty marque was going upmarket like the Buick was. However time ran out for GM.
GM cannot be in every market segment. Used to try but was unsuccessful. There are just too many different brands out there to compete with.
Buick will fill the affordable lux segment and hopefully models like the GS will give them a little market share in the sporty market.
The new line of ats and xts look like 1980 ford taurus on steroids. I hate the rounded edges and rumped up back end…it looks like its already been rear ended. I had an 05 cts and when the 08 came out I was so frusterated, the car was amazing and it was such a huge step forward, I wanted one and couldnt afford it. I now own a 2010 cts and by the looks of the new direction of caddillac I wont be racing out to by the new one. I will be looking for an audi or something. I feel caddillac losts its balls….the radical styling was what made the cars appealing and set them apart, now that they have pulled in the reins on the design, I think I will be looking elsehwere for my next upgrade.