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Cadillac drops the base engine in the 2017 ATS

Cadillac, in an effort to boost sales of the slow moving ATS, is making some changes to the 2017 model. Most notably, the luxury manufacturer is dropping the base 2.5-liter normally-aspirated four-cylinder engine from the lineup, leaving the 272 hp 2.0-liter turbocharged four as the base engine. The base 2.0-liter ATS will start at $35,590, $1,380 more than the 2016 model, though that's partially offset by more standard equipment. The base model now comes standard with Cadillac's controversial CUE infotainment system with an 8-inch touchscreen display, a Bose surround-sound speaker system, and a backup camera. Despite the bump in price for the base model, all other ATS trim levels will see prices reduced between $650 and $1,100, depending on the model. The ATS was designed to be Cadillac's answer to the BMW 3-Series and Mercedes-Benz C-Class. Though the ATS was originally released at a time where the Germans were slightly off their game, it's never quite matched up in terms of performance or customer perception posting disappointing sales figures compared to the competition. Cadillac has had problems getting customers into cars, and few ATS customers are converts from luxury competition. In order to offload inventory and lure in new customers, the company has previously been forced to offer big lease deals. Many of these customers have come over from more mainstream brands like Chevrolet and Ford. ATS sales have fallen 23 percent through May versus 2015. The car's market share has fallen every year since 2013, currently occupying just 4.5 percent of the compact luxury market. Unless Cadillac can offer some truly amazing deals, we don't expect many shoppers to buy American over the strong German competition. Related video: Cadillac Luxury Sedan

Why Cadillac thinks it needs to succeed in Europe to sell cars elsewhere

Ward's Auto has taken an interesting look at the renewed focus General Motors is showing towards Cadillac in Europe. Susan Docherty, president and managing director of Chevrolet and Cadillac in Europe (pictured), says in order for the luxury brand to thrive in China, it first needs to succeed in the old country. The reason? Chinese buyers look to Europe for cues as to what's deemed worthy of the term "luxury." There are hurdles to the plan, however. In addition to the fact that the EU is flooded with high-end nameplates, GM doesn't necessarily have the distribution network in place to put buyers behind the wheel.
Combine that with persistent economic woes and Cadillac's checkered past marred by a lack of diesel engine options and a bankrupt distributor, and the road ahead for the brand looks like less of an uphill climb and more like a straight-up cliff face. But Docherty is optimistic and says she has a plan for the brand. We recommend heading over to Ward's for a closer look at the full read.

Cadillac Escalade gets $5,000 discount to ward off Lincoln Navigator

General Motors apparently isn't going to let early good reception for the redesigned Lincoln Navigator steal thunder from its own luxury SUV without a fight. It's offering a $5,000 discount on the purchase or lease of the Cadillac Escalade this month to any buyer who trades in a 1999 or newer Lincoln model, Bloomberg reports. GM spokesman Jim Cain told Bloomberg the incentive is being offered to keep prices competitive for the Escalade. The 2018 Navigator starts at $72,055, compared to $73,995 for the Escalade, but the outgoing version of the Navigator is selling for an average of around $53,000, compared with more than $80,000 on average for the Escalade, he said. The Escalade was the top-selling domestic luxury SUV in October and No. 4 in the segment, according to Motor Intelligence. It far outsold the Navigator, which last saw a refresh in 2015 and a full redesign in 2007. But Ford is hoping to gain back some ground with the new Navigator and updated Expedition, which also trails the Chevrolet Tahoe and Chevy Suburban in its segment. Bloomberg notes that one Morgan Stanley analyst estimates that GM owns a $2 billion annual pretax profit edge in the lucrative luxury sport utility segment. Our recent First Drive review called the new Navigator "far superior to its primary competitor, the Cadillac Escalade."Related Video: