Cadillac CTS sales have fallen by 40 percent in October from a year earlier in the wake of the September launch of the new ATS.
Although the ATS is a class below the CTS, it seems Cadillac’s new compact sedan is stealing customers from its larger sibling. According to data from Edmunds.com, the CTS is one of the most cross-shopped vehicles among potential ATS buyers. Fortunately for Cadillac, the BMW 3 Series is also on the potential ATS buyers’ list.
However, Cadillac execs are not worried about the CTS’ sales drop, with Cadillac U.S. sales chief Chase Hawkins saying it’s a phenomenon that GM has a plan for and that such overlap is natural when a new nameplate appears. Hawkins told Automotive News that GM will reduce production of the CTS early next year to prevent CTS sedans and coupes from piling up on dealer lots. This way, GM will also avoid being forced to offer heavy incentives on the cars or dumping them into rental fleets.
GM won’t have to worry for too long about this problem as the next-generation CTS will be a bit longer and more expensive when it will launch in late 2013. That will create more separation from ATS and allow the CTS to compete directly with the BMW 5 Series and other mid-sized luxury sedans.