Cadillac CTS Sport Faces Marketing Squeeze

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Detroit Free Press - August 5, 2012

The CTS sport sedan, now in its second generation, put Cadillac back on the map. The CTS sedan, wagon and coupe accounted for 78 percent of Cadillac’s car sales and 36 percent of the brand’s total U.S. vehicle sales last year.

So what is the marketing dilemma facing the CTS sport sedan?

The CTS has company in Cadillac showrooms now. The brand just began selling the larger XTS luxury sedan. The smaller ATS sport sedan arrives in dealerships any day. Cadillac expects the CTS to fall from its best-seller to No. 3 next year.

“It’s a challenge,” said analyst Rebecca Lindland of IHS Automotive. “The CTS was the sexy newcomer a couple of years ago. It was the darling of the Cadillac showroom. Suddenly it’s the middle sister, easy to overlook.”

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