Now that we've seen the new 1-Series BMW, people will clamor saying that Cadillac needs a Cruze-based econobox to compete with it. Mercedes had everybody talking when the CLA came out with its $29,995 price tag. Well, guess what happened?
The Audi A3 also now starts above $30,000, and there is no reason to believe that BMW will undercut Audi. Like I suggested in the thread about re-positioning future Cadillacs with the placement of the CT6 as an E-Class/5-Series competitor, Cadillac should make its cars slightly larger, and slightly more expensive than their class counterparts. CT2/ATS can keep a $33,000 price tag and 200hp base engine and properly compete with CLA etc. as long as they give it some aesthetic flair. Powertrain-wise, it can still slug it out with the C-Class/next-gen 3-Series, but undercut their prices.
Maybe, Cadillac just needs a legion full of tweeners: priced like the class under, but sized like the class above. As long as they are opulent and capable, it wouldn't hurt their image, and it gives Cadillac a unique market position: for the same money as the Germans, I can get a bigger, nicer Cadillac that can outrun them. I think that approach would be uniquely American, as well. Hopefully, this is what they have planned, but of course, I guess we'll know by 2025...