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GM Cadillac chief: New CT5 will replace 3 sedans; EVs coming

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Quote:

The head of General Motors' Cadillac luxury division said on Thursday the brand will shrink its lineup of sedans and expand its offerings of sport utility vehicles and hybrid and electric vehicles in response to market shifts.

Expanding Cadillac's global sales is central to GM's overall profit strategy, and Cadillac has reported a 27 percent increase in worldwide sales through the first half of the year.

However, in the United States, now the brand's second largest market behind China, Cadillac sales are down 1.6 percent and combined sales of the brand's four sedan models have plummeted 16.3 percent through the first half of the year.

That has forced GM to order layoffs at two Michigan factories that build Cadillac cars, and raised questions about the long term future of the plants.

"We have to rebalance our sedan portfolio," Johan de Nysschen told Reuters in interview, offering new details about the strategy.

Cadillac will not directly replace the current XTS, CTS or ATS sedans when they end their life cycles in 2019, he said. Instead, Cadillac will use a single new car called the CT5 to appeal to consumers shopping for sedans priced between $35,000 and $45,000. New versions of the CT6 sedan will be offered to customers who want a larger car starting at $50,000.

Sources had told Reuters last week that GM was considering ending production on six cars including the CT6 and XTS and models from Chevrolet and Buick. That report now appears only half-right as far as Cadillac is concerned.

The new CT5 will be built at a factory near Lansing, Michigan, that currently builds the slow-selling Cadillac ATS and CTS models. A small luxury sedan to compete with the Audi A3 will be built in the same plant, de Nysschen said.

Cadillac will offer more SUVs, starting with a compact model called XT4, followed by a larger SUV with three rows of seats due by 2019 to compete with vehicles such as Volvo's current XC90 model.

Volvo, owned by China's Zhejiang Geely Holding Group, scored a public relations coup by announcing plans earlier this month to power all its vehicles with either hybrid or all-electric technology starting in 2019. The move challenges Tesla, which has eclipsed more established brands with tech savvy luxury buyers.

Cadillac has plans "not dissimilar to what Volvo has announced," with more electrified vehicles launching in the second half of the next decade, de Nysschen said.

To stay abreast of Tesla and others in the industry's technology race, Cadillac will launch later this year its Super Cruise system that enables hands-free driving up to 85 miles per hour.

Source

Sounds like GM will either kill off the Buick Lacrosse, Chev Impala, ATS and XTS and will offer a solid ES competitor. Or this XT5 will replace the ATS and CT6 will be the larger car.

Something tells me Toyota will kill off the Avalon, then the ES will expand its price range.

I think having at least three sedans is a good idea. A small SUV like the NX would be a good idea too.

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Originally Posted by LexsCTJill (Post 9938586)

CT5 Jill. According to Johan de Nysschen, the CT5 will replace the ATS, CTS, XTS. The XT5 is their successful successor to the SRX which you liked so much the other day.

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Originally Posted by Hoovey2411 (Post 9938594)

CT5 Jill. According to Johan de Nysschen, the CT5 will replace the ATS, CTS, XTS. The XT5 is their successful successor to the SRX which you liked so much the other day.

Was thinking CT5 when I wrote XT5.

Quote:

Originally Posted by LexsCTJill (Post 9938586)

Sounds like GM will either kill off the Buick Lacrosse, Chev Impala, ATS and XTS and will offer a solid ES competitor.

Up until this year, when sales collapsed, the Lacrosse was a solid ES Competitor. It didn't get the nickname "The American Lexus" for nothing. ;)

You and I (and others on Car Chat) had some disagreements in the past about the XTS. Though its interior (and AWD availability) was a step above that of the DTS it replaced, its refinement, at least IMO, was a step backwards. Cadillac, however, is claiming better ride comfort for the 2018 XTS than in past models, so I'll have to check that out. Toyota, as you remember, blew it on the 2014 Avalon's suspension, and had to soften things up a little on the 2016s for all but the Touring models. Looks like history may be repeating itself. ;)

first issue - this whole name change is a disaster.

Second issue - owners of ATS, CTS and XTS - your cars are all discontinued. Say goodbye bye to any residual value.

Cadillac overpriced all their cars and put crappy interiors in them.
i have no sympathy for poor management.

An article in today's Autoblog had this quote, "CTS sales are in the toilet in 2017, and GM is smart to shake things up. So with the announcement that Cadillac head honcho Johan de Nysschen has finally been allowed to kill off underperforming models, the CTS is toast. (As is the ATS, and much more importantly, the XTS – a shambling dinosaur of a sedan.) What's next is the CT5, and that's what we're interested in now."
So does that the two models are officially killed? Or is this just the author's opinion? It's not really clear.

Quote:

Originally Posted by RNM GS3 (Post 9938720)

Cadillac overpriced all their cars and put crappy interiors in them.
i have no sympathy for poor management.

pretty much nailed it on the head

CTS sales tanked after 2014, the XTS never sold well and the ATS could never compete against the 3 series. With one swoop, Cadillac is killing its 3-series, 5-series and ES competitors and replacing it with one car, the CT5. That doesn't make any sense. So much of Cadillac management under de Nysschen hasn't made any sense.

I'd say keep the ATS and the CT6 and have Buick compete against the ES with the LaCrosse. The issue is servicing: do Cadillac owners mind going to GM or Buick dealers for servicing?

That's too bad. There's a black CTS a occasionally see in my neighborhood and it always catches my eye. I wouldn't buy one but it's stylish and competent in my view.

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Originally Posted by chromedome (Post 9939128)

Everyone likes to make fun of the soft, smooth-riding DTS as the classic Grandpa/Grandma car (which, to a large extent, it was, if you look at most of the people who drove them). But it was also Cadillac's Bread-and-Butter sedan, had a dedicated and loyal group of buyers (who were also well-heeled, with lots of cash), accounted for a significant percentage of Cadillac sales until SUVs look over, and made the company a LOT of money over the years. Any way you look at it, the company has suffered since it was dropped.

Quote:

the ATS could never compete against the 3 series.

The ATS was actually better-built overall, handled better than the newer 3 series, and had a better warranty, but Cadillac found out that it was a so-called "solution" to a problem that never existed. Most Cadillac buyers are clearly NOT sport-oriented, turned off by the ATS's overly-stiff ride, and avoided it in droves.

Quote:

Originally Posted by chromedome (Post 9939128)

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I'd say keep the ATS and the CT6 and have Buick compete against the ES with the LaCrosse. The issue is servicing: do Cadillac owners mind going to GM or Buick dealers for servicing?

I think that when you look at Cadillac against the competition, you need to consider both Buick and Cadillac combined. They kind of compete and overlap on the lower end of the segment. Add in GMC Denali versions and combine with Cadillac XT5 and Escalade and you have a sort of bigger picture of how GM is competing against the competition. From what I understand, GM has a very high transaction price compared to Toyota and Lexus. So people are clearly spending the money on GM.

did the cts have a cheap interior?

At $46k starting price, people will just spend a little more and look elsewhere.

Also, I don't like the bland slab design. Cover the front end, and what you have left is pretty damn boring and basic. Can't tell the difference from an old buick.
It just doesn't evoke any emotional response.

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Originally Posted by pman6 (Post 9939483)

did the cts have a cheap interior?

Yes and no. The 1Gen CTS had an El Cheapo, dull plastic interior that would make a skin-flint look generous. The 2Gen CTS was a vast improvement......IMO, the best CTS interior to date. The 3Gen interior is still on the nice side appearance-wise, but has too many confusing and unintuitive controls, video-functions, and touch-scrolls.