Cadillac hoped the ATS would make a real impact in the compact luxury class. Instead, the model has lagged behind competitors and its market share has been in constant decline since 2013. Automotive News says one of the key reasons comes down to the ATS' resale value falling at a steady rate. This is turn makes it harder and expensive for the brand to offer a competitive lease, something needed if you want to make it in the marketplace.
To try and fix this, Cadillac has made a number of changes for the 2017 model. The big one is the base 2.5 four-cylinder being dropped and the turbo 2.0L taking its place. Cadillac is also adding a bit more equipment such as a Bose audio system, 8-inch touchscreen with CUE, and a backup camera. These changes bump the ATS' base price to $35,590 (about $1,500 more than the 2016 model). But in turn, the higher trim levels for the ATS will see price cuts ranging from $650 to $1,100.
"We want to emphasize the 2.0-liter turbo and the car's features while attacking the market on the product side, rather than using increased incentives," said Cadillac's global product planning director, Hampden Tener.
Will it be enough? Only future sales figures will be able to answer this question.
Source: Automotive News (Subscription Required)