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In case you squint hard in the label on the Cadillac CTSV high performance sedan that reaches showrooms shortly, you'll notice a subtle but telling change in Cadillac's pricing method.
The decal begins at $83,995, including transportation. That is about $11,000 below BMW's M-5 and about $9,500 less than the Mercedes Benz E63 AMG.
Recently, Cadillac has attempted to value its new entries at par with all the Germans, drawing scorn from critics and sellers. The ATS compact sedan found in 2012 as well as the CTS mid-size sedan that rolled-out a yr after are prime illustrations.
The scheme backfired. The automobiles sat too long on supplier lots. Eventually they wanted huge motivators to transfer them, damaging residual values and Cadillac's manufacturer picture.
Cadillac President Johan de Nysschen was not about when these calls were created. While he's defended Cadillac's pricing, he also has suggested that he may have done things differently.
The CTSV as well as the little brother ATS V sedan and coupe now reaching showrooms provide our first peek to the pricing strategy under the de Nysschen program. (ATSV pricing additionally comes in below its competitors, including the BMW M3 and M4.)
The reductions to the Germans represent what de Nysschen & Co. understand all too well: Cadillac faces brandimage headwinds, while the cachet of BMW or Mercedes supports an integrated premium.
So is that picture opening worth about 10 grand on a mid-size performance sedan? Who understands?
That is where a 2nd element of the scheme comes in. As the "rival brand," as de Nysschen loves to call it, Cadillac not only should cost in a price reduction but also h-AS to offer more.
Consider the CTS-V. It generates substantially more horse power and torque compared to M5 and E63 AMG. It's an increased top speed and better strength-to-fat ratio. (It is also pulling lots of essential praise since a recently available national media try.)
Sure, the other automobiles are after in their life-cycles and will leapfrog the CTSV on some specifications when redesigned. But Cadillac's more-for-less strategy appears more sensible as opposed to head to head tack of the recent times.
It is a purposeful strategy, Cadillac chief engineer Dave Leone informed me.
"Give them more for less," he explained, "instead of the sam e for exactly the same.
It's possible for you to reach Mike Colias at [email protected]
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