Cadillac’s High ATPs Outpace Luxury Segment’s Best Sellers
Update (8/2): added quote from Cadillac spokesperson
Cadillac sales in the United States are down 1.6% through six months at a total of 72,073 vehicles delivered, and a significant reason for that downturn is attributable to the continued decline of car sales. Through June, sales of the ATS are down 26.2%, sales of the CTS are down 36%, and sales of the XTS are down 24.7%; these three vehicles will ultimately be replaced by two sedans, which a Cadillac spokesperson says will be “positioned in different segments and clearly differentiated by size and price while exhibiting the latest evolution of the Cadillac design language.”
Though Cadillac has seen a decline in US sales (more than offset by its phenomenal growth in China), it has managed to outpace its competition in another very important metric: average transaction prices.
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Automotive News compared Cadillac’s ATPs to those of three of America’s top four luxury brands: Mercedes-Benz, BMW, and Audi. With an average transaction price of $60,366 per vehicle in June, Cadillac easily topped Mercedes-Benz’s $56,736 ATP, BMW’s $54,336 ATP, and Audi’s $50,860 ATP. This, Auto News writes, is attributable to 65% of Cadillac’s US sales coming from the likes of the XT5 crossover, which has quickly ascended into the position of the brand’s best-seller once held by the outgoing SRX, and the Navigator SUV. Comparatively, a mere 46% of BMW and Mercedes’ (less Sprinter vans) sales are light trucks.
Specifically, the Escalade has made up about 25% of all Cadillac sales in the United States through the first half. With a base starting price of $74,590 and a price tag of just under six figures for the top-tier Escalade ESV Platinum, the continued popularity of the Escalade has helped bolster the brand even as sedan sales continue to lag.
Likely to help increase the trend of rising ATPs in the year ahead is the introduction of the Cadillac XT4 crossover in 2018, which Cadillac Assistant Manager of Communications JL Lavina tells The News Wheel will serve as the kick off of a “Cadillac product offensive, [which is] aimed at significant expansion and renewal of the portfolio.”
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News Source: Automotive News (subscription required)