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Inside Analysis
Cadillac CTS family could be 3-series fighters

By DAVID SEDGWICK | AUTOMOTIVE NEWS

AutoWeek | Published 12/26/06, 7:56 am et

DETROIT -- The Cadillac CTS sedan may be about to start a family.

General Motors insiders say Cadillac is seriously considering a plan to create a family of CTS sedans, coupes and wagons that would emulate BMW's 3-series lineup.

Mock-ups of a wagon and coupe already lurk inside GM's design studio in suburban Detroit. Of course, that doesn't mean they'll ever go into production. But GM executives clearly have spotted an opportunity to create a CTS minibrand within Cadillac.

The sedan would remain the centerpiece of a CTS family, generating the bulk of total sales. And GM is prepared to brag about it. The redesigned sedan - which sports a new interior and a grille reminiscent of the Cadillac Sixteen concept - will debut during the Detroit auto show in January.

Niche strategy

With sales of 50,024 units through November, the CTS sedan has a secure market niche. Because the wagon and coupe would share mechanicals with the sedan, Cadillac can make money if those new models generate sales of 20,000 units apiece.

That's where Cadillac's European strategy could prove useful. Most Americans supposedly don't care for wagons - but Europeans do. If Cadillac can sell a couple of thousand CTS wagons in Europe, it would help reach the wagon's breakeven point.

If GM goes ahead with this strategy, expect the CTS family to be $30,000 to $40,000. That would target the fattest portion of the U.S. luxury market - a segment that generates annual sales of 1 million units.

Here's how the rest of Cadillac's lineup would fit the brand's strategy:

Stop dreaming about a production version of the Cadillac Sixteen. That concept car drew rave reviews, but a production version would cost a couple of hundred thousand dollars. The Mercedes Maybach and the Rolls-Royce Phantom have demonstrated just how small that segment is.

Forget about an uber sedan that could challenge the Mercedes S class. Volkswagen's Phaeton flop-aroo has demonstrated the risks of moving upscale too quickly.

Cadillac executives think they could pull it off. But product development is costly, and GM is trying to conserve resources. An S-class competitor simply isn't a priority.

In fact, Cadillac's flagship car is actually a truck: the Escalade. The Escalade still has room to move upscale with new powertrains and interiors. Stay tuned.

Cadillac needs only one $50,000 sedan, not two. We are told that Cadillac executives might dump either the STS or the DTS sedan. The $40,000-to-$50,000 price segment generates industry sales of 300,000 units.

In a segment of that size, Cadillac's old something-for-everyone strategy is obsolete. Customers don't walk into a Cadillac showroom asking for "traditional American luxury" or "European-style performance." Says one executive: "They just want a nice car."

But here's the problem: The front-wheel-drive DTS handily outsells the rear-wheel-drive STS. But traditional DTS buyers are dying off, and Cadillac wants to promote rwd performance.

What about the SRX and the XLR roadster? Cadillac needs a crossover, so the SRX has a future. The roadster seems expendable. But the XLR shares mechanicals with the Corvette, so it is not hugely expensive. I'll leave it to the buff magazines to track the roadster's future.

The bottom line: GM executives are convinced that Cadillac can attract younger buyers, that the CTS lineup can expand and that the brand can afford to get sassier.

At this point, I wouldn't be surprised if tail fins reappear someday

 

I found this interesting:

Didn't realize DTS was pulling in more sales than STS. They also mention the XLR as being expedible and I'd agree, at least as it's currently being offered. I'd imagine it's profitable and serves its purpose as an image car, but it also seems artifically high-priced for its content/presentation over Corvette.

 

How many 3-series wagons does BMW sell in the US each year? I mean, I next to never see a 3-series wagon.

Is it really worth the investment for a CTS wagon?

I think the coupe is a good idea, and frankly, overdue for the direction Cadillac is going... I question the value of a wagon variant, though.

 

The DeVille has been Caddy's best seller for quite a while, with some years coming close to the 100,000 mark. DTS has carried on the role of bestseller, albeit at a lower rate (about 60k per year). STS comes in around the 25-30k mark.

As for the original post, it's been mentioned many times but bears repeating: If Caddy wants the CTS to be a 3-series competitor, a good start would be making it closer to the size of a 3-series. Currently it's a lot closer to the size of a 5-series. Cadillac still has it in the back of their mind somewhere that size = luxury and build their cars according to that mentality. It'd be nice if they lost that.

 

Well , to me it seems Cadillac definately has got the correct mindset to stay in the game .

Hint - ditch the STS in current for and DTS , and make 1 completely awesome RWD car in short and long wheelbase forms .

 

No mention of a CTS droptop coupe.

 

I also think a slightly larger RWD (STS part 2) should replace the DTS.

I like the current STS/SLS combo but would like to see both cars a little bit bigger on the inside for the next gen.

Keep the CTS its current size and build a Kappa Caddy to go after the low end 3 series models. CTS will handle the 330 and low end 5 series models

 

While doing a ramdom search on google I came across this photo of a CTS wagon.


Looks like it has European plates on it.

 

looks like the SRX

 

 

CTS wagon would be mostly for Europe I think. However we'd probably see it here in limited numbers to take up some of the slack for the SRX which wont be around in the future.

 

There is a replacement already on the books for the SRX.

 

For a time there was an NG SRX on the books (GMT267) but that is not the case anymore. Now it's sort of a replacement by committee situation with the CTS wagon and BRX.

 

That's good.

I was never fond of the SRX, and it never grew on me.