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Cadillac to ditch China-only LWB models for global 'right size'

We often think of Buick being General Motors' poster child in China, but would it surprise you to hear that Cadillac is just doing a bang-up job in the People's Republic? It's true, the Standard of the World is on fire, and it's doing so with a surprising group of buyers that are going to push through globe-spanning changes for the brand. Cadillac's average buyer age in the People's Republic of China is just 34. Yes, younger buyers dominate the Chinese market, but according to Reuters, Cadillac's young buyers want to drive and they don't want the typical businessman's German-badged sedan. Cadillac understands this, and is setting about to exploit it with a shift in its Chinese strategy. According to President Johan de Nysschen, the company will begin moving away from the China-only, long-wheelbase models, like the ATS-L. Instead, it will push for a global "right size" design, along with some stylistic changes. "You will see a softening of some of the hard edges, and more three-dimension styling on the side of the car," de Nysschen told Reuters, while noting that the cars will still be "instantly recognizable as Cadillac." Even without these changes, though, Cadillac has bucked the trend in China. At 17 percent, the company's sales exceeded the PRC's overall market growth of 7.3 percent by a significant margin. In fact, Cadillac's 2015 gains outpaced the overall market growth in China over the past three years, as the brand jumped to nearly 80,000 units. And the company is hoping to push that even higher, Reuters reports, with President Johan de Nysschen targeting a 25-percent increase in 2016. Related Video:

Akerson says Cadillac will get a larger sedan within two years

It seems that during a recent affair showing off the 2014 Cadillac CTS, General Motors CEO Dan Akerson confirmed reports regarding a new Cadillac flagship sedan. According to USA Today, which Akerson was visiting, he said that a sedan larger than the XTS would debut within the next two years.
This matches up with what we heard earlier in the month about a Cadillac model that will go up against the BMW 7 Series and Mercedes-Benz S-Class (not a pricier, low-volume sedan also discussed in that article). But this is the first time a high-profile executive name has been attributed to such a report, and the first time a broad timeframe has been mentioned. This article adds that the unnamed car will be rear-, and all-wheel drive with a platform "loosely based" on the new CTS, with styling closer to that car than recent Cadillac concept vehicles. The XTS will continue production of course, as well.

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.