CTS-V sticker reflects shift in Cadillac pricing - Automotive News (blog)

If you squint hard at the label on the Cadillac CTS-V high-performance sedan that hits showrooms soon, you will see a subtle but telling shift in Cadillac’s pricing strategy. In recent years, Cadillac has tried to price its new entries at parity with the Germans, drawing scorn from critics and dealers. The ATS compact sedan launched in 2012 and the CTS midsize sedan that rolled out a year later are prime examples. Eventually they needed big incentives to move them, harming residual values and Cadillac’s brand image. Cadillac President Johan de Nysschen wasn’t around when those calls were made. While he has defended Cadillac’s pricing, he also has hinted that he might have done things differently. The CTS-V and the little-brother ATS-V sedan and coupe now hitting showrooms offer our first glimpse into the pricing approach under the de Nysschen regime. (ATS-V pricing also comes in below its rivals, such as the BMW M3 and M4. ). The discounts to the Germans reflect what de Nysschen & Co. know all too well: Cadillac faces brand-image headwinds, while the cachet of BMW or Mercedes supports a... That’s where a second part of the strategy comes in. As the “challenger brand,” as de Nysschen likes to call it, Cadillac not only must price at a discount but also has to offer more. Take the CTS-V. Source: www.autonews.com