Cadillac to give ATS breathing room by trimming CTS output

[ne_one]

Cadillac to give ATS breathing room by trimming CTS output
Automotive News
November 21, 2012
by Mike Colias

We've heard a lot about how Cadillac's new ATS compact sedan was built to lure buyers away from the BMW 3 series and other German luxury juggernauts.

That might yet happen. But, at least early on, the ATS is poaching buyers from its older and larger sibling in the Cadillac lineup: the CTS.

CTS sales have nosedived in the wake of the September launch of the new ATS, sinking 40 percent in October from a year earlier.

CTS is one of the most cross-shopped vehicles among potential ATS buyers, data from Edmunds.com shows. Happily for Caddy execs, the 3 Series also is up there on the potential ATS buyer's list.

Such overlap is natural when a new nameplate infiltrates a lineup. It's a phenomenon that General Motors has a plan for, says Chase Hawkins, Cadillac's U.S. sales chief.

Hawkins told me this week that GM will dial back CTS production next year. That will prevent CTS sedans and coupes from piling up on dealer lots and forcing GM to load heavy incentives on them or dump them into rental fleets. GM resorted to those tactics often in the past, and Cadillac's brand still is recovering from it.

Full article at link.

[dewey9315]

ATS sales taking away from CTS sales was something I think we would have all expected. With the debut of the brand new MY14 CTS (larger, more expensive, further upscale), it will allow the CTS to fight in the 5-series/E class arena. This will also allow the ATS to be the volume seller for Cadillac.

[BBDOS CV8]

ATS sales taking away from CTS sales was something I think we would have all expected. With the debut of the brand new MY14 CTS (larger, more expensive, further upscale), it will allow the CTS to fight in the 5-series/E class arena. This will also allow the ATS to be the volume seller for Cadillac.

ATS isn't the only or possibly the major reason the CTS has dropped. The current model has been on the market 4-5 years, and it's halo derivatives like the wagon, coupe and -V are also reasonably old. I don't think - when the new CTS is released - the ATS will outsell it or be the volume model for North America.

It will be more like the Sonic and Cruze - both will sell a decent proportion and compliment each other in the market, with the CTS selling slightly more in North America. ATS will bring in conquest sales from the BMercxusdi scene with a newer, younger buyer profile, but I think it will sell less-well to the larger numbers of older buyers with the disposable readies to buy who are going to plump for the bigger and more comfortable and likely more optionable car and couldn't care less about corner-carving abilities.

[Dr. Show-Me]

Everyone should be astounded if CTS sales DIDN'T DROP with the introduction of a smaller less expensive Cadillac. Logic says it, resident Cadillac haters say it, it is to be expected.
I am also happy to see that GM won't cheapen the remaining CTSs to blow them out the door.
This move cries out for bringing out the new CTS+ asap.

[schmallz]

The Verano is taking sales from the Regal. The 1 Series is taking sales from the 3 Series. This is perfectly normal.

Infact, the 1 Series is the new 3 Series in BMW's mind, since it is the smaller and sportier vehicle. The 1 Series has effectively replaced the 1 Series as BMW's entry level luxury sports sedan, and will soon replace it in sales numbers.

[megeebee]

I've been predicting this for some time. It's natural this should happen. The CTS Sedan is in its 6th model year with no real change. It's done very good service for Cadillac. I think the CTS Coupe will continue to do well, but the sedan was bound to slack off with the introduction of the ATS Sedan. And as others have noted, the new CTS is due in a year or less.

[Cobaltss_King]

Yeah it's no big shocker here but a smile still comes on my face when I see a current gen CTS. I still wouldn't mind having a CTS-V wagon in the driveway.

[Extreme4x4]

Slow news day??

[germeezy1]

Slow news day??

Must be, and in other news Ford's official logo was just discovered to be very oval , and very blue.

[b4z]

My dealer has sold all of his cts courtesy vehicles and only has atss. 17 of them!!
It's crazy. And it costs the same to lease a cts as it does a ats.

[Ed753]

ATS isn't the only or possibly the major reason the CTS has dropped. The current model has been on the market 4-5 years, and it's halo derivatives like the wagon, coupe and -V are also reasonably old. I don't think - when the new CTS is released - the ATS will outsell it or be the volume model for North America.

Its still a bit early to tell, but we do know the CTS is down 5,000 units for the year (-10.9%), almost 1/3 of that happened last month where the CTS was (-40.2%).

GM trimming CTS means, they plan to just trade future CTS sales for ATS sales?

[JBsZ06]

GM should only build loaded cts vehicles and stop making lower optioned versions and then just offer a nice discount that lands the cts just above the loaded ATS until the new cts arrives. It'll hold the residuals up for the next model ....and offer a nice cadillac premium package to owners.

I still enjoy my CTS ..... Nice vehicle with 304 hp and sport suspension, very reliable too!

I look forward to seeing the next CTS

[zete]

No surprise. And slowly diminishing available CTSes on the lots will ensure people focus on what they want: either an inexpensive, entry level Cadillac (ATS) or the mid-range model (CTS). And since the new CTS is out sometime next year(?) then it gives Cadillac the perfect opportunity to slow production of the existing CTS keeping prices up until the new model arrives, at which point they can jack up the price of the CTS to where it should be to compete with the 5-series and E-class.

[ral1960]

They dropped the standard vinyl seats from the CTS sedan and made remote start and heated front seats standard, so the cheapest CTS starts at a higher price than before.

[jpd80]

As well as ATS, could the XTS actually be dragging sales away from CTS?