Cadillac’s ATPs Continue to Soar in July as Sedan Sales Take a Dive
Update (8/2): added quote from Cadillac spokesperson
Cadillac sales dropped 21.7% in July with a total of 11,227 vehicles delivered to customers in the United States. Retail sales were down 22% with 10,527 vehicles delivered, but retail ATPs (average transaction prices) continued to stand amongst the tops in the luxury industry.
In terms of total sale, July was perhaps not the cruelest of months, but it was pretty cruel to the ATS, CTS, and XTS, all of which saw double-digit sales declines. Sales of the ATS and CTS—down 63.3% and 40.1%, respectively—both fell into triple digits as the brand ramps up to replace them with two fresh new models, one of which will likely be dubbed the CT5.
“As the current ATS, CTS, and XTS run their natural course until the end of their planned life-cycle, we will introduce two completely new sedans, positioned in different segments and clearly differentiated by size and price while exhibiting the latest evolution of the Cadillac design language,” said JL Lavina, Cadillac’s Assistant Manager, Communications in an email to The News Wheel.
These new sedans would likely be catered to fit around the CT6 prestige sedan, which saw its total sales increase 7.6% and its retail sales increase 7% in July. With a total of 890 sedans sold, Cadillac has sold 6,287 CT6s thus far this year, putting it ahead of the sales total for the less expensive CTS. Lavina told us that the plan for the CT6 moving forward is to bolster it even further with new engine options, a far cry from rumors that have it among GM sedans said to be on the chopping block.
“The Cadillac CT6 forms a very important part of our long term product strategy and we will expand the line up through the introduction of additional engine variants in the future.”
Cadillac’s breadwinner for the month was, as ever, the new XT5 . Sales totaled 5,504 vehicles in July, up 11.2% year-over-year. Sales of the XT5 were not enough to outpace crossover sales from July 2016—the phased-out SRX saw deliveries totaling 1,307 vehicles last year compared to just one sale this year—but they were enough to bring the XT5’s total to 35,302 sales through seven months, which is well ahead of the combined total between the XT5 and SRX (32,540 vehicles) through July 2016. The XT5’s retail sales are also up 10% over the XT5 and SRX through July.
“We are working to balance our product portfolio to reflect luxury market demands,” Lavina added. “The Cadillac product offensive, aimed at significant expansion and renewal of the portfolio, will begin with the launch of the XT4 crossover in 2018.”
Escalade sales, a major reason for Cadillac’s lead in retail ATPs for the luxury industry, were up 2.6% with a total of 1,748 vehicles sold. In July, Cadillac once again saw a big spike in retail ATPs, increasing $3,000 per vehicle and putting its ATPs $3,000 ahead of the second-highest brand.
Through July, Cadillac’s sales in the United States total 83,300 vehicles, down 4.9%. Retail sales are down 5.2% at 75,004 vehicles delivered.