Cadillac President Johan de Nysschen has confirmed plans for an entry-level Cadillac sedan that will slot beneath the ATS. The model will be based on the highly-praised rear-wheel-drive Alpha vehicle architecture.
A “big priority” according to de Nysschen, the vehicle will be Cadillac’s response to a new wave of entry-luxury entrants such as the fast-selling Mercedes-Benz CLA and Audi A3. Thanks to their low base prices, both models attract a healthy amount of shoppers that turn into new customers, often for a lifetime, thereby curbing ATS sales and Cadillac sales as a whole.
de Nysschen says that the ATS “is being compared to the new entrants that have come on in this exploding market segment populated by CLA and the Audi A3 sedan”. So consumers “have access to a Mercedes-Benz at $30,000, whereas the ATS is starting several thousand dollars higher.”
During 2014, U.S. sales of the Cadillac ATS dropped 22 percent to 29,890 units. Meanwhile, the CLA-Class was responsible for selling 27,365 units in its first full year on the market, and the Audi A3 lineup sold 22,250 units in roughly eight months of being available.
|MODEL||2014 CALENDAR YEAR U.S. SALES|
|AUDI A3 RANGE:||22,250|
From a dollars and cents standpoint, the ATS has a starting price of $34,985, including the destination fee, while the CLA starts at $31,750 and A3 at $31,690.
|MODEL||PRICE (IN USD)|
|AUDI A3 RANGE:||$31,690|