New Compact Luxury Entrants To Blame For Slumping ATS Sales?

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• I find it interesting that the CLA proves that rear-wheel drive is not the be all and end all of luxury cars. It's really about the look, the status and the price. More people would probably benefit from the increased interior space that front-wheel drive offers than those actually use the performance benefits of rear-wheel drive.

  Anyway, if you look at individual sales, it would seem that the ATS actually stole some sales from the CTS last year, and now that the CTS has been redesigned it may be stealing some back.

  • The CLA attracts a very different luxury buyer. The kind of person who would normally buy something like a modern Buick or a Lexus ES, but if they can get the same gear with a prestigious Mercedes badge on it? Why wouldn't they upgrade?

    Cadillac does not need to cheapen itself again to attract the same kind of buyers it was attracting in the 80s and 90s. That's what got it in trouble in the first place.

  • I'd add that RWD isn't the end all be all for luxury cars in the segment in which A3 and CLA compete in, simple because it's a totally different kind of customer. Move up a class, and priorities start to shift big time, with a bigger emphasis on a superior sporty driving experience.

• It certainly is a competitive and crowded segment. And while the ATS has many things going for it, GM needs to pick up its game if its going to compete. It will require not only very good/great products (which GM is continuing to get better at, but Im worried about styling issues) with very good/great quality (getting there, but still more work to do) but also very smart marketing/segmentation (a real struggle for GM right now).

  As shown by the ELR pricing debacle, and the sooner-than-expected flatlining in the ATS, GM really needs to figure out its marketing. To combat these "$29,995 luxury" models, they have a particular challenge/opportunity: they don't need to do it just with Cadillac. If Buick is going to truly be a meaningful "near luxury" brand, these is something it should take on. It can focus on FWD cars & CUVs that staying in the $25-$35 range. They have shown success in this area with the Encore and to a lesser extent the Regal.

  It will be a tough job, but that's why Barra & co get paid the big bucks. While dealers may complain, a sale for GM is a sale for GM -- whether it is Buick or Cadillac.

  I think Cadillac should continue to focus on the high-end (e.g. LTS) for cars while adding a wider range of CUVs -- which I think they are doing. But they need to be doing it more quickly. I mean the ATS was released two years ago and they are just now releasing a coupe (not to mention no V). There needs to be something every year.

• Two extra cylinders can correct issues like this, quickly. No puns intended.

• GM needs to put the 8-speed in all of their RWD Cadillac cars, especially the ATS range in order to increase performance and mpg ratings. This will definitely lure more buyers.

• I highly doubt that the Audi A3, BMW 2 Series and CLA are steeling sells from the ATS. IMO, the damage is done within Cadillac. I found that odd since sales of the A4, 3/4 series had been growing in volume while the C class had been steady or reducing with their sub-entry level stablemates. So sound like to me people are waiting for the coupe to come out, marketing is weak and dealerships are not pushing the ATS out the door aggressively enough due to weak sales.

• They need more mainstream marketing. I haven't seen an ATS commercial in a while. They started out great with their journey around the world campaign out of the gate, but now marketing is nonexistent.

  Get the word out there about the ATS. More importantly, market at and during demographic appropriate events/timeslots. You're not going to sell an ATS during a NASCAR race, but you might during golf, tennis, hockey. You're probably not going to sell the ATS to the average Duck Dynasty demographic, you'll have a better chance with the Mythbusters demographic.

  Basically, I just think not that many people know about the ATS. If people don't know about your product, how can you sell it. We want kids to be putting up pictures of the CTS-V, ATS-V (whenever that comes), CTS Race Car, etc, not the BMW M or Mercedes AMG cars.

  • This is true, but Cadillac is too busy trying to push ELRs, under the mistaken impression that the ELR gives them prestige (it doesn't), and that that prestige will increase sales overall (it wouldn't).

• "tempted by the $30,825 entry price of the front-wheel drive CLA and A3, both of which carry a $29,900 entry price."

  Translation, please?

• This is quite surprising, seeing as to how the ATS is actually a great vehicle. One thing that strikes me is seeing as to how the last generation CTS sat in that 'tweener" position in the compact luxury sedan segment, it was regarded as quite a bit of car for the money. Definitely a great value. But now Cadillac has a legitimate compact sedan, but it's not garnering the same sales and appeal as the last CTS. Could it be that customers of the last CTS would rather hold on to the "tweener" vehicle they see as a better value? Or is it simply the overwhelming, tempting new luxury compact entrants in the segment?

  Either way, things need to change for Cadillac and the ATS. Some nice features that could possibly help spruce up sales would be an 8-speed or perhaps the availability of a dual-clutch transmission, more engine variety and more interior volume.

• I really think many are reading too much into this. While things like a 8 speed would not hurt it and the other ideas are not going to change what is going on.

  My hunch is that the car is lagging because they are offering one model. You have just a 4 door sedan and a couple engines. There is no V sport, No coupe option, No V series option etc.

  Also I believe the CTS has taken the wind out of the ATS sales. People in this class often would pony up the extra money for the larger CTS. Lets face it the two cars look alike and act alike but the CTS is just more of everything and if you can afford it what would you buy. Just look at the sales of the CTS and it tells the story.

  GM just needs to get moving with the ATS and get the coupe out and convertible.

  A V8 is not going to simulate sales that much and the V series will help but it will still be a small portion of the sales.

  I really think a well priced V sport version with a Turbo 4 pushing 350 HP would be a good direction to go for a V sport and leave the 400 HP plus engine to the TT V6.

  GM just needs to get some excitement into the car and keep building on it with new items and excitement.

  I expect a wagon here by the time they are ready to go back to Europe but not before then. They will need it in Europe and it will help support a low volume sales of the car here.

  Also it is going to take time to finish building the Cadillac image. One and two models will not do it as it takes time and more models and excitement to do this. They will get there but it will take time.

• I still stand by the notion that the dealers don't know what they're doing with this car.

  • "Oh man, GM really screwed the pooch with this ATS! Nobody we have on our past clientele list is going to buy a 4 cylinder compact Cadillac."

    That's because everyone on your past clientele records are 65 and older, and you've only ever known how to sell large N* powered cars to people in their 60's. If GM could shadow a BMW or Audi dealer and actually learn how to sell such a car, then maybe GM's dealers wouldn't be labour under the impression that the 'trad luxury' buyer doesn't exist anymore and that the dealers are chasing a buyer who doesn't exist based on decades old sales practices that once pushed loads of Devilles out the door.

    I can easily see a dealer calmly pointing a prospect at a new CTS because they know the markup is higher. When the prospect says the new CTS is too rich for their blood, older and inferior white 2nd gen CTS on the back lot suddenly becomes "just the Cadillac you need".

    Tesla is onto something by strongly promoting the store model instead of the dealership model. It's not like the store model is alien to GM (re: Saturn). If GM ran a Cadillac store, there would be no room for insolence and misdirected sales pitches aimed at pushing buyers into cars they don't want replete with needless and non-value added markups. All of the ATS's marketing and sales would be coordinated globally, and no store representative would treat the buyer like a mindless willing tool that can be pushed towards a product they didn't want.

    I also blame dealers for perpetuating the myth of luxury as a value proposition. Something that I fear is a legacy practice of their upbringing having sold old FWD G-bodies on price and not on features or content.

    "This Deville is JUST AS GOOD as the S-class, and it's $20K cheaper to boot! Will throw in paint and fabric, 3 years of oil changes, tickets to a regular season major sports event, and you've got yourself a swell ride and a deal that can't be beat by a Mercedes!"

    'Just as good' is not the same are 'Best', something that Cadillac is suppose to be, and the distinction between them is something that I don't think a single GM dealer is aware of.

  • I respectfully disagree with this opinion. As a 38 year GM dealership employee, and a current Cadillac salesperson who has sold many ATS and CTS models, it's my opinion based on interaction with my customers, that the car is great ,but too small, for traditional Cadillac buyers, who are moving into XTS, CTS or SRX instead, and secondly, the base decontented ATS is lackluster compared to Audi and the MB. We can only sell what they send us, and what we need is a RWD car 2.0 Turbo (the 2.5 is terrible) with CUE and fold down rear seats at a $29,900 price point, and maybe a better "leatherette" seat surface. The base radio looks 20 years old. The rear seat fold will at least add utility to the smallish back seat (and footwells).
    I agree with another poster or two that the marketing is now non-existent, after opening strong with the Cadillac vs the World series of commercials. The ELR commercial was a terrible misuse of funds for a low volume car, Furthermore, there are strict rules about advertising and wording of discounted Cadillac prices to maintain image and we can only do so much to move the needle by advertising. The car is exceptional and exciting to drive, but we need a better content at a lower price point to bring in younger buyers moving up that can replace the older generations that are diminishing. j
    Just one man's opinion.