Cadillac News: Cadillac ATS Stealing Sales From CTS, GM Cuts CTS Output

[William Maley]

William Maley

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 protected] or you can follow him on twitter at @realmudmonster.

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[Drew Dowdell]

This is what is supposed to happen, let the ATS gain a foothold and a following, then next year move the CTS up quite a lot in segment price with the equipment to go with it.

[Z-06]

This is news?

[Camino LS6]

Wish they had done a better job on the CTS coupe - might have helped overall sales.

[David]

Over all I am happy with the results of what Caddy is doing. It is in the right direction.

[daves87rs]

This is news?

+1

[smk4565]

No surprise as the ATS is a better car. It looks better proportioned on the road, (although I still don't love the front end) and the ATS is going to give better handing, ride, fuel economy, same interior, same price. The ATS is basically doing what the CTS did to the STS in 2008. Now the question will be, can the CTS go head on with the 5-series and E-class and sell cars? Cars like the STS and Lexus GS before it have failed, the new CTS will have it's work cut out for it, and it is going to make the XTS pointless I think, but we shall see.

[Drew Dowdell]

The XTS is a short timer, one and done car, built simply to fill showroom space at a time when Cadillac lost two models and yet had no money to replace it properly.

That said, the XTS is still very much a Cadillac that DTS and pre-2004 STS buyers can love.. (probably a good share of post-2004 STS buyers as well). It handles incredibly well for its size and drivetrain configuration (other reviewers back me up on this), and is in fact firmer around corners than an E-class.

.... and it is a Cadillac that I would very much enjoy having in my driveway.

My only worry about the CTS is that they'll hold back on something in the engine compartment and put it to market with the same engines that the ATS has minus the 2.5. They really need the new LT-1 in there in non-V form.

[Z-06]

My only worry about the CTS is that they'll hold back on something in the engine compartment and put it to market with the same engines that the ATS has minus the 2.5. They really need the new LT-1 in there in non-V form.

+1. Or a TT 3.6 with 400 hp or so.

[Lamar]

My only worry about the CTS is that they'll hold back on something in the engine compartment and put it to market with the same engines that the ATS has minus the 2.5. They really need the new LT-1 in there in non-V form.

Sorta like how BMW does with the 3 and the 5 Series.

I definitely agree with you... offer an engine between the LLT and the V-Series. I think most of us here have been saying the same thing about the current-gen for quite a while.

Edited November 29, 2012 by Lamar

[Drew Dowdell]

My only worry about the CTS is that they'll hold back on something in the engine compartment and put it to market with the same engines that the ATS has minus the 2.5. They really need the new LT-1 in there in non-V form.

Sorta like how BMW does with the 3 and the 5 Series.

I definitely agree with you... offer an engine between the LLT and the V-Series. I think most of us here have been saying the same thing about the current-gen for quite a while.

A Turbo 2.0T base, 3.6 V6 up market are fine for the CTS, but it needs to continue from there beyond what the ATS has. A 2.0T Diesel and either a Turbo V6 or the LT-1 would be welcome additions.