Staff Writer - CheersandGears.com
November 26, 2012
The Cadillac ATS was designed to compete with the likes of the Mercedes-Benz C-Class, Audi A4, and of course the BMW 3-Series.
Surprisingly, the new ATS appears to be cutting into the sales of another Cadillac, the CTS. Since the ATS was launched back in September, CTS sales have taken a nose dive. In October, CTS sales dropped 40% when compared to the same time last year. Edmunds.com data backs up this up with the ATS being cross-shopped with the CTS. Thankfully, the data from Edmunds also shows the ATS being cross-shopped with the 3-Series.
Is GM panicking with news like this? Well no. Chase Hawkins, Cadillac's U.S. sales chief tells Automotive News that they are not surprised with the ATS cannibalizing sales of the CTS. Hawkins says GM has a plan to deal with this; build less CTSes.
"We've planned for ATS to take some CTS customers out of the market who we otherwise would have seen. We definitely are going to be producing fewer CTSs next year to create some of that space for ATS," said Hawkins.
The next CTS, due out in late 2013 will move up in price and space, giving the two models a bit more breathing room.
Source: Automotive News (Subscription Required)
William Maley is a staff writer for Cheers & Gears. He can be reached at email@example.com or you can follow him on twitter at @realmudmonster.