Cadillac cut prices on the most popular versions of its CTS mid-size sedan, after the new design sold poorly.
Most four-cylinder models are $2,000 less; most V-6s are $3,000 less.
The struggling General Motors’ luxury brand also made $2,200 worth of options standard on the Luxury model — the first step up from the base version.
Price cuts affect the Luxury, Performance and Premium trim levels. The starting prices for the base model and the high-end twin-turbo V-sport are unchanged, at $46,340 and $60,335, respectively.
The new prices are effective immediately and dealers have new window stickers to use on cars they have in inventory.
There is no plan, though, to compensate people who just bought a CTS at the higher price.
Cadillac sales fell 6.5% last year, Autodata reports, in a new-vehicle market up 5.9%. All three of Cadillac’s newest car models reported terrible sales in the U.S. In fact, CTS fell the least, 3.8%. ATS small sedan was down 22%. XTS big sedan was off 25.3%.
The big Escalade truck-based SUV was the only Cadillac with a sales gain in 2014.
Last month, Cadillac abruptly fired its ad agency and hired a new one.
The price cuts can be seen as an embarrassing admission that the brand’s attempt to boost prices flopped. The 2015 CTS starts at about $6,000 more than the model it replaces.
“Cadillac is moving in the right direction to challenge the best luxury brands from Europe, but GM’s premium brand is not there yet. It’s unfortunate Cadillac had to confirm this through such a high-profile series of events, as a price hike followed by a price drop only advertises the issue,” says Karl Brauer, senior analyst at Kelley Blue Book.
“After Cadillac launched the entry-level ATS, it got too aggressive on moving the price up of the redesigned CTS – and too optimistic about the sales volume at that price. Despite the CTS being a solid vehicle, the Cadillac brand still does not have the cachet to charge such high premiums yet,” says Michelle Krebs, senior analyst for AutoTrader.com.
http://www.usatoday.com/story/money/cars/2015/01/07/cadillac-cts-poor-sales-price-cut/21401741/
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