SRX sells because it is cheap. It also sells because Americans are suckers for domestic SUVs in the same way they are suckers for Camry and Accords. On the plus side, it looks better than an RX350 or MKX and it has more power than either one also. Lexus may have it in build quality and technology , but the Lincoln and Acrua offerings don't have an interior as good as the SRX. The German midsize luxury SUVs are considerably more expensive than an SRX.
To bring this back to the CTS, here is where the challenge will lie. When the CTS goes up in price to make way for the ATS, what happens to CTS sales? And then also, what happens with the XTS and CTS fully overlapped in price point?
Let's play the "How many times is SMK wrong?" game... this isn't a drinking game because I don't want to have to check you all in to Betty Ford....
- SRX transaction prices are equal to the X3 and GLK. The SRX is the same size interior as those which is how car classes are determined... interior room. If the SRX is cheap, then so are they.
- SRX has a 71% conquest rate
- There simply weren't enough MKXes and Aspens sold for "domestic only" SUV buyers to come flocking to Cadillac at that volume.
- The Lexus build quality on the RX hasn't advanced since 2004, in some areas they've reversed course.
- The X5 and M-Class are a completely different class from the SRX, neither are entry lux CUV.
- Asking "what happens when the CTS and XTS overlap in price point?" is like asking "What happens when the Escalade and Corvette overlap in price point?" or "What happens when the Sprinter and C-class overlap in price point?".. and roughly equal to "What happens when the ATS and Lacrosse overlap in price point?!?!?!?!?!11?!!?!"