Incentives, Inventories Still High For Cadillac ATS
Back in April, we reported on relatively high incentives for the Cadillac ATS, which were discovered in the midst of some fact-checking on a blatant puff piece on the brand by Bloomberg. Months later, none other than Automotive News has caught on, with their own story about the baby Cadillac’s high pricing and the resulting incentives being offered.
When General Motors launched the Cadillac ATS nearly a year ago, executives sent a bold message by pricing the newcomer in the same territory as BMW’s 3 series, long the compact-luxury segment’s top seller.
But at the dealership, the ATS hasn’t commanded 3-series prices, research data show. Through the first six months of the year, the average transaction price on the ATS was $39,459, vs. $44,764 for the 3 series, according to Edmunds.com. The ATS had heavier incentives, too: $4,088 per unit, vs. $3,555 for the 3 series.
One explanation seems to stem from Cadillac’s distribution strategy, which, we learned, involved sending units to key markets in wealthy ZIP codes where Cadillac is looking for growth. But these locales (places like Miami, wealthy areas of California etc) tend to favor import luxury brands rather than Cadillac, and sales are, according to our source, not meeting internal projections. This explains inventory levels, which have been consistently above 100 days of supply since we last checked in (there’s currently a 122 day supply of ATS’ right now).
Given the multi-decade timeline it takes to rebuild a brand, it will take Cadillac some time to pull themselves up, and good product is the first step of a long journey. However, these are the facts – there are significant rebates and inventory levels are high on a car that had outsized expectations. And it took months for mainstream outlets to notice what we did.
More by Derek Kreindler
Latest Car Reviews
Read moreLatest Product Reviews
Read moreRecent Comments
- MaintenanceCosts It's not a Benz or a Jag / it's a 5-0 with a rag /And I don't wanna brag / but I could never be stag
- 3-On-The-Tree Son has a 2016 Mustang GT 5.0 and I have a 2009 C6 Corvette LS3 6spd. And on paper they are pretty close.
- 3-On-The-Tree Same as the Land Cruiser, emissions. I have a 1985 FJ60 Land Cruiser and it’s a beast off-roading.
- CanadaCraig I would like for this anniversary special to be a bare-bones Plain-Jane model offered in Dynasty Green and Vintage Burgundy.
- ToolGuy Ford is good at drifting all right... 😉
Comments
Join the conversation
When it comes to a luxury brand vehicle, most, beyond middle age want a comfortable vehicle that is easy to get in and out. And while the ATS is a comfortable car, it size is such that it doesn't cover that segment of buyers, well. As for the younger demographic with the means to buy a car in this segment, I bet a lot of them are waiting for a coupe, especially those young or older who want a sporty car that also has the look of a sporty car. As for myself, being of a seriously advanced age, I'm waiting for a coupe, an ATS-V coupe. I haven't much use for 4-drs. unless they have a long roof, and that isn't available with an ATS, either. I think the ATS will do well, especially if Cadillac gets behind it with a racing program like they did with the CTS-V. The old slogan... Win on weekends sell on Monday', still applies.
If you think the ATS has problems wait until the new CTS goes on sale. The ATS backseat is horrible, too small and the price it too high and that is all I will say about the car. It does drive and handle well and the brakes are very good. I saw the new CTS on the road today and I will tell you, all those awesome photos of it that Cadillac has, it does not look like this in real life. The back is downright bland and the front it way too busy and large. It is an explosion of LED and the light line is way too long. It comes from the top of the hood and goes straight down all the way to the bottom of the bumper and it is too much. The XTS pulled off its design way better than the new CTS. With the massive jump in price and the look not being that great, GM is going to get killed on the new CTS. It is weird because it is a brand new, not available for sale car, yet it blends right into traffic and gets little attention.