Cadillac Emphasis On Chasing Germans Creating Price Issues On Sales Floor

Shoppers in a Cadillac showroom can consider a just-released, redesigned CTS mid-sized sedan in a luxury trim package for about $55,000. Or they can step up to a roomier, showier XTS large sedan in the same trim level -- and pay about four grand less.

That unusual pricing setup -- the bigger car is almost always more expensive in a luxury sedan lineup -- is a byproduct of Cadillac's evolution toward German-style performance. The brand continues to fill its lineup with pricier, sporty entries such as the ATS compact and the 2014 CTS, which shed weight and sharpened the driving dynamics for its third generation.

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Car4Life - 11/11/2013 11:59:09 AM

+2 Boost

I really want to root for Cadillac...but I just do not understand their logic.

MattDarringer - 11/16/2013 7:07:48 PM

+1 Boost

The logic of the CTS vs XTS pricing is VERY sensical. The CTS has to be priced like a BMW 5, E Class, or A6 to be taken seriously as a competitor. If it were value priced like a Genesis, it would not be considered the equal of the Germans even if it was stylistically and dynamically.

On the other side, an XTS buyer would not consider the Germans, but two things are true. The XTS is a cash cow because it's just an Impala so the profit is amazing. Because it's bigger, Americans will assume it's more expensive and that will create enough of an aura for the large Cadillac until the Ciel/Elmirage model comes to market to battle the 7 Series, S Class, and A8.

It's a very clever approach.

Too bad the ELR is not as cleverly placed in the market.

jeffgall - 11/11/2013 12:10:17 PM

+1 Boost

Lexus seems to do ok with the same issue. IS rear drive and ES front drive overlap in price. They are both designed to appeal to different buyers with different tastes.

germanlover - 11/11/2013 12:39:07 PM

+2 Boost

I understand it perfectly. Pay more for the better car. The XTS is more of the car for grandpa. The CTS is the competition for the mid size luxury sedans. Might I add they are doing well with the reviews of the new CTS. Can't wait to see one on the streets. From the non professional reviews I've read from potential buyers of this car they were great and blown away with this product. Cadillac did a really good job with this car.

Need4Speed - 11/11/2013 12:46:08 PM

+2 Boost

This dilemma is understandable and it has to do mostly with the type of buyer that is shopping for a Cadillac. The typical Cadillac buyer doesn't quite understand the product lineup that Cadillac offers and will simply assume the CTS as a smaller XTS. The German car buyer on the other hand understands the product lineup and will shop accordingly. Cadillac has to ramp up efforts to educate people about their products until they are better understood.

Need4Speed - 11/11/2013 12:47:51 PM

+2 Boost

Edit to my post above:

"The German car buyer on the other hand understands the product lineup and will shop accordingly"

..should be...

"The car buyer shopping for a German car on the other hand understands the product lineup and will shop accordingly."

skytop - 11/11/2013 9:58:33 PM

-1 Boost

Now that has become a gruesomly ugly Caddy. Is it being designed by a team of yes men? And what's with all the Xmas tree lights up front? Does GM always have to over do everything to gaudy excess? Guess so.

stampfer - 11/12/2013 1:52:50 PM

+1 Boost

Simple, it's new concept for the uneducated buyer. They will learn. Those that care know that the smaller car has better driving dynamics, quality, and content.