Entry-Level Cadillac Sedan Expected to Compete with CLA, A3
Sales of the ATS were down 22% in 2014, and Cadillac President Johan de Nysschen says that much of that decrease can be attributed to German competitors introducing lower-priced entry-level models. As such, the brand plans to create an entry-level sedan of its own.
De Nysschen told Automotive News (sub. required) that the ATS is at a distinct disadvantage when matched up against models like the Mercedes CLA and Audi A3 because it has a starting price that is several thousand dollars higher. Including destination fee, the ATS starts at $34,985, whereas the CLA starts at $31,750 and the A3 starts at $31,690.
This creates a need for an entry-level Cadillac sedan to slot in below the ATS and recapture sales that might otherwise be lost to the lower-cost competitors. It also means that Cadillac will address consumer gripes with the ATS in the next generation, specifically criticism of rear seating room.
Auto News maintains that the entry-level Cadillac sedan will share the same RWD Alpha platform that underpins the ATS, which de Nysschen says is consistent with Cadillac’s image as a “challenger brand.”
“We want to build our reputation as a purveyor of high-performance drivers’ cars … so it’s better that we do it off a rear-wheel drive architecture,” de Nysschen added.
In 2014, Cadillac sold 29,890 ATS models. This was better than sales of both the CLA (27,365 units) and A3 (22,250 units), but it’s skewed in that the CLA was in its first full year of sales and the A3 was only on the market for 8 months.
News Source: Automotive News (Subscription Required)