The price of the 2015 Cadillac CTS has been cut in an effort to combat dwindling demand for the luxury mid-sized sedan in the United States.
General Motors told Cadillac dealers on Wednesday, Jan. 7 that it would reduce the price of the three best-selling packages of options on the model by up to $3,000, a spokesman said, as reported by Reuters.
It has made $2,200 worth of options standard on the luxury model, according to USA Today.
Most four-cylinder models have dropped $2,000 and most V-6s are $3,000 cheaper.
“After Cadillac launched the entry-level ATS, it got too aggressive on moving the price up of the redesigned CTS – and too optimistic about the sales volume at that price,” said AutoTrader.com senior analyst Michelle Krebs. “Despite the CTS being a solid vehicle, the Cadillac brand still does not have the cachet to charge such high premiums yet.”
The base price of the 2015 CTS remains at $46,340 and that of the high-end twin-turbo V-sport is still $60,335. Price reductions apply to luxury, performance and premium trim levels.
Cadillac chief Johan de Nysschen previously said the brand would not reduce base prices, but did not rule out repackaging options so customers would pay less overall. Luxury car brands are hesitant about dropping base prices as it could damage their images and affect the value of those already on the road, according to Reuters.
CTS sales dropped about 18 percent in December and 3.8 percent last year.
Cadillac was the only major car luxury brand to lose sales in 2014, selling 6.5 percent less than it did in 2013.
USA Today reported that there is no plan to compensate customers who recently purchased a CTS at the greater price.
(With reports from Reuters and USA Today)
(www.asianjournal.com)
(LA Weekend January 10-13, 2015 Sec. D pg.2)
