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Cadillac ATS failing to command BMW 3 Series-like pricing as hoped

The BMW 3 Series has long been the benchmark for small and sporty luxury vehicles, but the Cadillac ATS has come on strong in its short time on the market as a true rival in this segment. As impressive as Cadillac's new compact sedan is, however, Automotive News is reporting that the car is still lagging behind the 3 Series when it comes to actual transaction pricing.
According to the article, the average transaction price for the ATS is $39,459 while the 3 Series is at a much larger $44,764, but, just as importantly, Cadillac has about $500 more in incentives on the ATS compared to BMW. Transaction prices are much closer to cars like the Mercedes C-Class and Audi A4. Of course, this is all with the ATS trying to take on its small,sport sedan rivals with a single bodystyle and limited powertrain options compared to the numerous options available from the German automakers in this class.
This uneven battle won't last long, though, as recent spy shots have revealed that Cadillac is hard at work on a high-performance ATS-V and an ATS Coupe. No official word as to when either of these models will be unveiled, but with auto show season set to kick off, we're expecting sooner rather than later. The best news for the ATS is that the Automotive News says sales of the ATS are on target and that 74 percent of ATS buyers are new to Cadillac - two important factors for the brand as it tries to break into this tough segment.

Cadillac recalls 120k examples of ATS for fire risk

Cadillac is recalling a total of 119,339 units (96,145 in the US alone) of the 2013-2016 ATS sedan, because the coil antenna module that powers the rear defogger can overheat. The problem has been linked to four fires, but there have been no injuries, fatalities, or crashes, according to the automaker. During manufacturing, the antenna might have been produced with "critically weak terminal connectivity." If being cycled on and off often or used continuously, these faulty examples can overheat, leading to a fire in the driver's side rear pillar. According to the company, "less than 1 percent of the recalled vehicles are expected to have the condition." According to the National Highway Traffic Safety Administration (in a PDF), the fix is a reflash for the ATS' Electronic Climate Control module that automatically turns on the rear defogger when the engine starts. In addition, 2013 models keep the system on continuously at low temperatures at highway speeds and this is also being disabled in the update. The changes are meant to cycle the coil less often, but owners can still turn it on manually. Related Video: GM Statement: General Motors is recalling approximately 96,145 2013-16 model year ATS sedans in the U.S. Some of these vehicles may have been manufactured with critically weak terminal connectivity in the coil antenna module, which powers the rear defogger system. If the module has the condition and is subjected to excessive cycling or continuous operation, it may overheat and a fire may develop inside the rear pillar on the driver's side of the vehicle. Less than 1 percent of the recalled vehicles are expected to have the condition. GM is aware of four fires but no injuries, fatalities or crashes. Including Canada, Mexico and exports, the total population of the recall is approximately 119,339. RECALL Subject : Rear Defogger Coil Antenna Module may Overheat Report Receipt Date: SEP 03, 2015 NHTSA Campaign Number: 15V558000 Component(s): VISIBILITY Potential Number of Units Affected: 96,145 All Products Associated with this Recall Vehicle Make Model Model Year(s) CADILLAC ATS 2013-2016 Details Manufacturer: General Motors LLC SUMMARY: General Motors LLC (GM) is recalling certain model year 2013-2016 Cadillac ATS sedan vehicles manufactured April 23, 2012, to September 2, 2015. In the affected vehicles, the coil antenna module that powers the rear defogger system may generate excessive heat due to excessive cycling or continuous operation.

Cadillac chief marketer admits ELR is 'a big disappointment'

During the Cadillac XT5 global launch in Dubai, Automobile interviewed Cadillac Chief Marketing Officer Uwe Ellinghaus and got the CMO to touch on just about every major issue affecting the brand and the industry. After two years on the job, having come from 15 years at BMW, Ellinghaus naturally started with the "passionate Cadillac customers" and "iconic brand" spiel, then they got into a top-down look at where America's preeminent luxury brand stands. Ellinghaus said Cadillac is in a period of transition, lately focused on smaller and more performance-oriented vehicles, which has alienated a chunk of veteran customers and left others trying to figure out what Cadillac is about. He believes that "for a few more years, the products will probably be stronger than the brand," while he does his work of conveying what the company has to offer. But the brand had to make the switch, because "Generation X and Y will make 80 percent of all actual buyers in the next five years..." On top of that, he'll be working on making sure the customer and dealership experiences are where they need to be. Speaking of dealers, Ellinghaus thinks the future will not be brick-and-mortar shops, but digital pickup-and-delivery services. "Nobody wants to go to a dealership for service and maintenance," he says. He said the ELR has been "a big disappointment," but it has taught Cadillac that converting its existing line-up to plug-in hybrids is a better way forward. However, he characterized the plug-in hybrid as "the next all-wheel drive," in that everyone's going to offer it soon, so it will be "an entry ticket into luxury automobiles rather than a differentiating aspect." The CMO thinks the CTS is suffering because of the decline in the US midsize luxury sedan market in general thanks to the SUV and crossover craze, so the brand really needs another small SUV. Head over to Automobile for more of Ellinghaus' intriguing answers, like "I do believe that very long-term hydrogen is really the way," and "it's time to get real" in Europe. Taking a dig at Volkswagen on that last matter, he also said, "I think the absence of the diesel is not as much of an issue as it was eight weeks ago." Related Video: