General Motors, the No. 1 US automaker is faced with a crucial problem in the upper luxury segment – the Cadillac brand has seen a sales drop in 2014 amid a market boom for both mass-market and premium automakers.

The latest signal in the ongoing Cadillac woes is the announcement that the brand has decided to lower the price for numerous variants of the CTS sedan in an attempt to counter the falling sales of the model in the United States. According to a spokesperson, the automaker told the Cadillac dealers it opted to reduce the asking price for the three best-selling packages of options on the model by as much as $3,000. According to analysts, Cadillac’s move repositions the redesigned CTS sedan in a more manageable price bracket, as the brand became too aggressive with the pricing of the model after it introduced the entry-level ATS. The industry experts believe that Cadillac still doesn’t have enough brand image to commend higher prices, and the marquee is still unable to compete from the same level with the three leading luxury brands – BMW, Mercedes-Benz and Lexus.

Although Cadillac has opted to keep the base price of the 2015 model unchanged at $46,340, the brand reduced the rice for the luxury, performance and premium packages between $1,000 and $3,000 and the spokesperson says the reduction would span across the “vast majority” of sold CTS sedans. Cadillac was the only important premium brand to finish 2014 with lower sales than in 2013, with the overall luxury segment on the rise. Sales went down 6.5% last year, allowing Volkswagen AG’s Audi brand to knock Cadillac to the fifth position on the US market.

Via Reuters


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