Cadillac is preparing to launch its first all-new product under the brand’s latest boss, Johan de Nysschen. That vehicle is, of course, the 2016 Cadillac CT6. But as Automotive News recently pointed out, Cadillac between a rock and a hard place as it prepares to launch a third entrant into the luxury sedan segment, one that has shown the slowest growth in the United States, while crossovers boom.
The three sedans in question are the 2016 Cadillac CT6, 2016 Cadillac CTS and 2016 Cadillac XTS. Let’s separate the boys from the men.
The 2016 Cadillac XTS is a downright a tweener vehicle. Its specifications lend itself towards a large luxury sedan, albeit in front-wheel drive, meaning that it doesn’t match the German large sedans in the slightest. Indeed, the XTS may be the only product left in Cadillac’s portfolio that caters to the brand’s older audience.
By contrast, the 2016 CT6 certainly is not a tweener in the slightest, as the car’s specs show it pegs the BMW 750i, Audi A8, and Lexus LS in short-wheelbase form. Mercedes-Benz, however, exclusively sells its S-Class in long-wheelbase form in the Untied States, meaning that it outdoes the CT6 in nearly every dimension; but Cadillac is remedying something for the boys over at Benz to drool over, according to de Nysschen.
Finally, we have the 2016 CTS: based on the longer variant of GM’s Alpha platform, the vehicle is a true midsizer in its own right, ringing in much smaller and less luxurious than the CT6. And it is priced lower than the CT6 as well. Indeed, the XTS represents Cadillac’s past, while the midsize CTS and full-size CT6 represent the present and the future. And the CTS and CT6 are distinct vehicles in their own right. So then, what’s the problem?
Well, despite the XTS being on its way out, it doesn’t eliminate the fact that pricing between the three cars overlaps. And though each vehicle has a distinct entry point (read: price), the overlap is obvious.
| Model: | 2016 ATS | 2016 CTS | 2016 XTS | 2016 CT6 |
|---|---|---|---|---|
| Base price: | $33,215 | $45,560 | $45,295 | $53,495 |
Eliminating the XTS will help in eliminating the overlap, but won’t solve the fact that the CT6 is roughly $8,000 higher than that of the CTS. By contrast, the difference in price between the CTS-fighting BMW 5 Series and a 7 Series (that would compete with the CT6) is $31,000.
Hopefully, repositioning the portfolio is something Cadillac and de Nysschen are working on behind the scenes.
Comments
I thought Cadillac was axing the XTS. Then it all makes sense. They are need to hurry up and build a compact crossover like the BMW X1. Ive been waiting for awhile. Even Infiniti showcased there own.
yes and yes to both your comments the answer is yes and yes
CT8 should come soon and stray far apart from the current sedans in STYLING, AND CLASS.
Glad you’re not running Cadillac. The CT8 should build on the strength of the CT6 with a longer wheelbase and greater luxury, especially in the rear. Should be what the 750iL is to the 750i.
CT8 will arrive sometime after 20 20 with groundbreaking technologies and features new interior styling new exterior styling. You can compare it to the S Class S 600 Mercedes Pullman
at the end of the decade in 2019 or 2020…..the XTS dies and the CT8 is born.
I think the CTS, CT6 and XTS will appeal to 3 different customer groups. Although the CT6 is a beautiful car and seems to be priced reasonably, I’ll stick with the CTS…the next one will be my 5th CTS and 15th new Cadillac. I simply don’t need or want a car as large as the CT6. I prefer a midsize car. And finally I think the XTS will appeal to older customers who have owned the Cadillac DeVille.
Precisely. Different customers for different vehicles. The XTS does its job, for now. Much like the ES is a staple of the Lexus lineup even though the rest of the line is RWD.
And another observation: the CT6 has been priced too low, thereby contributing to this overlap. It should be another $5,000 higher base with more equipment. They will get sales either way, given that the closest competitor from Japan (Lexus LS) is $35,000 more expensive and the closest competitor from Germany is $40,000 more expensive (Audi A8). The Benz and BMW are even more.
I wonder if there are just too many variations of the same car . You can buy a Base or Luxury , Premium and Platinum ( Performance ) . And that’s not including a V-Sport or V Series . Maybe Cadillac should look at not offering so many trim levels on certain cars . On the CT6 and CT8 sell a Base model and a Premium ( Platinum ) model . Maybe offer their top luxury models in only one trim level and skip a Base model . And throw in a V-Sport later on in the models lifespan .
I agree with you. And there certainly ought not to be a “base” level of trim for any of Cadillac’s models. Cadillac is luxury or it isn’t Cadillac.
I know Cadillac must flesh out their CUV lineup first (and by god the rest better be Alpha/Omega based 4x4s), but soon after they need to offer sporty, sexy, emotive coupes. I expect Cadillac to go toe to toe with Mercedes-Benz in product offerings.
Yes yes yes! Alpha and Omega-based crossovers for the win! The more, the merrier.
Exactly. You can’t make a luxury performance utility that “makes the Cayenne blush” (DeNysschen’s own words) on a transverse-engine FWD-biased mass market platform.
But for pete’s sake, bring in the coupes afterward. There’s NO reason why this isn’t a reality: http://tripedali.com/wp-content/uploads/2014/05/Cadillac-2015-CTS-V-Coupe.jpg
I delivered a 2016 XTS AWD Luxury tonight to a lawyer born in 1922. He traded an 09 DTS with just 45k miles. So the demographic is still alive. The other XTS I’ve sold in the last year was to my 83 year old Uncle, who traded a 750 il
I got to drive it 97 miles through a driving rainstorm, and it was a pleasure. Navigation was a pleasure and fast, even with voice commands for destination on a confusing, busy freeway. Lane Departure Assist, Forward Collision Alert, AWD really was a nice ride. Engine was a bit anemic up high PA hills but adequate on the flats.
My hope for the Brand is to match the Euros on the base ATS price AND content, to attract and grow future young customers, like the poster above on his 15th Caddy. ATS disappoints me with the base radio and engine. Bring it in at 29,999 with CUE and 2.0 T and they will jump off the lots. The ATS, CTS and XTS are dead issues at our store, thank goodness for the SRX and Escalade!
Cadillac’s XTS outsells the CTS by 500-700 cars per month which means it’s unlikely Cadillac will discontinue production of a car that is popular; although this can change after Cadillac introduces the CT6. One thing Cadillac needs to think about is how to improve CTS sales because between the ATS, XTS and CTS, it’s the CTS that has the weakest sales. This is a gamble that Cadillac President Johan de Nysschen is betting will change and something General Motors CEO Mary T. Barra is willing to play along with; but if sales don’t pick up.. one has to suspect the screams calling for Nysschen’s position will get louder.
The XTS will be phased out, but only in a few years. Plenty of time to get ATS, CTS, CT6 sales in order… and to intoduced the subcompact model below the ATS (or its CT#) replacement.
XTS goes basically when the current gen Impala goes.
Problem as has been mentioned are the trim levels, esepcially when it comes to V vs V Sport. I know its a BMW M vs M sport thing, but BMW’s been in the game a lot longer, and to be brutally honest, they and their dealer network cater to that. Cadillac is newer in the game and not yet established for consumers to know the trim levels.
Until Cadillac drops the stigma of being a luxury Chevrolet, sold (certianly here in Canada) beside Chevy Cruzes on the same show room floor, it will be tough to differentiate.
Nevermind the fact that dealer ordering will be fractured, further fracturing the process. Face it, the way and type of models the dealer orders are the ones that get pushed on customers, and sold first, and some consumers may not even know that they have such a choice within the model, and between models at a similar price…so its not really a consumer choice, unless they want to order (and get the unpleasant look from the salesman who needs you to buy a unit off the lot to get paid) and wait a couple months for delivery.
The CT6 should not be available for 55k and a 2.0L turbo. It should be fancier and more exclusive. If you want a nice caddy with a 2.0 turbo, you can get the ats or cts. Cadillac needs to take a lesson from Volvo right now – they’re doing it right.
the CT6 and CT8 can not be too far apart in release dates….after 2020 is too late.
Not sure why this is news. Everyone that has followed Cadillac the last several years knows that the brand and for that matter GM have been through a ton of major changes. After all the XTS is a product of GMs bankruptcy and was no more then a stop gap. The CT6 was originally was to be the top flagship, then that was changed when they decided they needed a high end car above it. The CTS is priced accordingly do to the fact the XTS was going to be axed and the CT6 as the flagship. But because of the many changes made by GM you have this price overlap situation. It will be worked out in the next few years.
the CT6 will arrive in March 2016….I see the CT8 will arrive March 2020.
Why not a new XTS as a CT5 based on the same plataform as the all new 2017 Buick LaCrosse. It can help Cadillac to have a limo in its lineup.
no…the XTS is a dead man walking……and FWD is not for Cadillac…..I see the XT5 is going to switch to RWD sometime in the next decade.