200 MPH 2016 Cadillac CTS-V Announced

[Bruce Nunnally]

DETROIT – Cadillac today introduced the 2016 CTS-V, the most powerful product in the brand’s 112-year history and the newest entry in the elite class of the world’s highest-performing luxury cars.

Launching in late summer with 640 horsepower (477 kW), 630 lb-ft of torque (855 Nm) and a top speed of 200 mph, the new CTS-V reaches higher than its predecessors, leading Cadillac’s product-driven expansion and elevation. It is the third generation of the acclaimed luxury sports sedan that launched the elite V-Series a decade ago – and redefined Cadillac for a new generation of enthusiasts.

Read more: http://caddyinfo.com/wordpress/200-mph-2016-cadillac-cts-v-announced/

[Bruce Nunnally]

[Bruce Nunnally]

[Cadillac Jim]

The other shoe drops... resoundingly!

Now, about the price? One major advantage of the LSA was producability, which made its price attainable. The Corvette flavor was hand-build and not so attainable. The 640 hp, 630 lb-ft is very near the Corvette Z06's 650 hp, 650 lb-ft, close enough to be caused by a quieter exhaust system.

I just did a price check, and the cost of a new Corvette Z06 can be had for a little as $77,201 according to KBB.com. That means that the 2015 CTS-V will be priced about where we expected it to be.

Yes, it *could* use another 100 horsepower.

[Bruce Nunnally]

Maybe we need a contest / prize for this one as well as the ATS-V price? I predict $85K, but could be as high as the BMW M5 starting price of $93,600.

I was hoping weight would come in under 4000 but close at 4100 lb. Power as expected, so good there. I am excited to see launch control included on the auto.

[Cadillac Jim]

Cadillac has been quietly gaining market share since about 1992 by making superior cars and pricing them for what they are worth. Mercedes, BMW, and now even VW have been making bales of cash by overpricing their cars since the American car doldrums of the 1970's and 1980's.

The marketplace and the laws of economics say that the German carmakers are right: if it sells for a given price, it's worth that price in the marketplace. And, Cadillac has been selling equivalent cars for nearly as much markup for a few years now.

I haven't been tracking the car prices and I trust your scholarship on such matters, and I agree that your $85K estimate seems to be in line with past prices and the invisible inflation that's not published as such (for a quick estimate of real inflation, compare comparable commodities prices for two different years - a commodity being potatoes, raw rolled steel, etc. but not futures).

One way of having your cake and eating it too is to provide a MSRP (price on the window sticker) comparable to that of the competition but provide the dealers with the flexibility to sell the car for 10% or 15% less. The discounts could come as special events or promotions, with highlights such as trading in a competing car, and, to avoid discrimination against us folk, a "loyalty consideration."

[cdgrinci]

I'm going to put my 'guess' in at 75k; Cadillac needs competitor buyers to not just give it a look but give it a try. Cadillac needs to offer a little 'value' for getting that 'look'. IMO

[Bruce Nunnally]