Will The 2017 Cadillac XT5 Start Below $35,000?

Aaron Cole
by Aaron Cole

Speaking to Automotive News, Cadillac chief Johan de Nysschen said that the automaker’s strategy will be to price cars much lower than the Germans and eventually raise prices as the brand gains traction.

Cadillac has to heap incentives on its cars to move them off lots, he said.

“Knowing that, it seemed to be more sensible to price CT6 right and let the car gain traction,” de Nysschen told Automotive News. “We need to give the car time to establish a reputation. With a very compelling product offering and a good price, I think that’s the way to do it.”

When the 2016 Cadillac CT6 goes on sale in March, that car will cost nearly $55,000 to start — well below the BMW 7 Series, which starts at around $82,000 and the Mercedes S Class that’s around $95,000.

Cadillac hasn’t announced pricing for its XT5, which will go on sale next year after the CT6. It’s likely that the car will undercut German competitors such as BMW’s X3 and Audi’s Q5, which both hover around $40,000 to start. Cadillac’s outgoing SRX starts at just over $38,000.

De Nysschen said Cadillac will use the same strategy used on the CT6 when it prices the XT5, but stopped short of saying how much it would cost when it goes on sale. The Cadillac chief only said that pricing would be “competitive.”

It would be a fine line to walk for Cadillac, however. Even at $38,000 to start, and on an outgoing car, the SRX is still the brand’s best-seller.

The newly unveiled XT5 and CT6 will be the first all-new cars under de Nysschen’s tutelage, who took over at Cadillac after stints at Infiniti and Audi of America.

[Image: GM]

Aaron Cole
Aaron Cole

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  • Gasser Gasser on Nov 29, 2015

    Several great points are raised above. I just got back from Los Angeles Auto Show. The most amazing things I saw were the sticker prices. No way can Cadillac sell the XT5 at $35000. Many of the Fords (Edge and Fusions) were at this price point. Even the new Prius had a model that topped $30K. I was impressed that the interiors of the more expensive Ford/Honda/Toyota etc were still just so-so dash boards and door panels with upscale leather seating. This to me is an argument to get more of a lightly optioned more expensive car than a loaded one from the big three. (Interestingly, IMHO, GM had the best interiors of the low priced cars.) What puts me off from buying a new car, vs an SUV or a CUV, is the ridiculous height of the hood and belt lines in new cars. I've long ago given up on the idea of seeing out the back of a car, but at least let me see over the hood or where the hood ends!! I'm in the Cadillac demographic age (68), but no way will I buy an ATS, CTS or XTS. To my eye they are ugly, cramped and have cost saving interiors.

  • "scarey" "scarey" on Nov 29, 2015

    GM has been planning to deemphasize the American market for 40 years. Look to the Chinese market to see where Cadillac is headed.Cadillac is a Chinese brand now, as is Buick, and all of GM (except for Chevy/GMC pickups) soon. Osama Bin Laden is dead and General Motors is alive- in China.

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    • RideHeight RideHeight on Nov 30, 2015

      @Zackman Guess it depends on whether I have my partials in.

  • Johnster Johnster on Nov 30, 2015

    I have a feeling this under $35,000 Cadillac XT5 is going to be a front-wheel drive (2-wheel drive) model powered by a 2.0 Liter Turbo 4. I wouldn't be surprised if it came with "simulated leather" interior trim on the seating surfaces.

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    • Derekson Derekson on Dec 02, 2015

      @bd2 The new E-class will almost assuredly drop the 3.5 liter NA V6 base model in favor of MS's 2.0L T4 as well.

  • Big Al from Oz Big Al from Oz on Nov 30, 2015

    I have been biting my tongue of late, especially regarding some of the comments above relating to "what a Caddy is or should be". The logic behind some of the comments are astounding. Caddy should be put out to pasture and let it become a memory, like many other past US "coachbuilders". Cadillac started to go down hill in the 70s after the first oil crisis, along with much of the US auto manufacturers. This timing coincides with the up turn in the EU and Japanese economies due to the effects of WWII. The EU and Japanese by the time of the oil crisis had set up a fantastic model for global operations, an area where the US manufacturers had difficulty mastering. The US manufacturers idea of global operation was to have regional sub units producing specific vehicles for their markets. The US auto manufacturers treated these regions like "Little Americas" in the way their businesses functioned with little effort in rationalising their models and making global vehicles like the EU and Japan. The EU and Japan had to export because their markets were not big enough to sustain the growth required. The likes of Audi, BMW, Mercedes Benz, etc were exported and made a name for themselves. Caddy must build what the consumer wants, not cater to some out dated and nostalgic view of the great US luxury automobile. Big vehicles are CUVs, SUVs and pickups. This is what the cashed up consumer wants. The car segment is decreasing, why would you in business try and capture the days of yore in a dying segment. Then add to this GMs constant attempts at saving Caddy wasting resources. For Caddy to be successful it must be a global product and recognised to be on par with the prestigious Euro and Asian marques. This just ain't goin' happen. GM is 40 years to late in attempting to fix up Cadillac.

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