Overproduction, hefty spiffs sink residuals of Cadillac ATS

[Bruce Nunnally]

DETROIT -- Since its launch 18 months ago, the Cadillac ATS sedan has been lauded as having the performance chops to help the brand finally compete with the German luxury juggernauts.

So why did ALG, the industry's arbiter of resale values, slam the ATS at the outset of its 2014 model year?

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[cdgrinci]

Perhaps Cadillac was a bit too ambitious; the segment was already product rich and all the 'players' were well represented, i.e., BMW, M/B, Audi, Lexus, Infiniti (not to mention the Koreans trying to make a move). It was an uphill battle, and Cadillac did fairly well, but slow and steady should be the course. They've (Cadillac) got the product, but some of the marketing and the dealers, need to be addressed to better get the word out (not to mention Cadillac needs almost bullet-proof reliability to stand out in the segment).

[Bruce Nunnally]

Maybe. However, I feel Cadillac needs to take a much more aggressive approach with the ATS. I would make the 2L turbo the standard engine, retune it for 300 hp, and price it at $29.9. Basically move the ATS $5K down across the line.

The ATS sales are well below where they need to be and Cadillac needs to address with a substantive changes.

[cdgrinci]

That would certainly be a bold move (as you can't even get the base 2.5L for under 30k); it will be interesting how Cadillac proceeds. I think M/B's intro of the sub 30 CLA may do some harm to those that aspired to that brand (M/B) knowing there is a 'low-rent' model (now in the line-up). Cadillac has expended a lot of energy, engineering and quality improvement (and don't forget time) to get back into consideration to the premium luxury brand market; caution is certainly warranted. It is a slippery slope (the auto industry).