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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.

It's going to cost $12 billion to fix Cadillac

The Cadillac CT6's development predates Johan de Nysschen taking over at Cadillac, but the forthcoming flagship is the luxury brand's first major new product launch since the beginning of his tenure. The vehicle's debut also marks the beginning of a comprehensive $12 billion renewal plan bringing eight new vehicles in the next five years. Now, the former Audi and Infiniti exec is talking about joining Caddy and the company's future. "Cadillac will be a powerhouse global luxury brand that will command the respect of its peers," de Nysschen said about the forecast state of the company in 2020 to Bloomberg. He disclosed that three of those new vehicles under the five-year plan would be crossovers and reiterated that plug-in hybrids are on the way that would take advantage of the Chevrolet Volt's tech advances. De Nysschen also reminisced about joining Cadillac last year. He told Bloomberg that leaving Infiniti wasn't an easy decision, and there were apparently long conversations on the phone with General Motors President Dan Ammann discussing strategy for the luxury brand. De Nysschen was apparently clear that a greater investment and more autonomy from the corporate mother ship were vital. These days, the revitalization of Cadillac is just getting rolling. The company has a swanky New York office with a dedicated team to focus on the future. According to de Nysschen, the brand will grow its staff to around 150 people by the end of the year, compared to over 40 now. The marketing plan is to position the American luxury brand as a more distinctive product versus more common German rivals. It's going to be very interesting to see if this new Caddy can dare greatly enough to accomplish these lofty goals.

GM removes start/stop from full-size trucks and SUVs with V8 engines

GM is removing start/stop technology from a number of its popular full-size SUVs due to the ongoing chip shortage. This follows the removal of cylinder deactivation technology from some of its trucks, which was also due to the chip shortage. GM Authority first reported the news, but we’ve just confirmed everything with a GM spokesperson.  The following 2021 model year vehicles will be affected: Chevy Tahoe, Chevy Suburban, GMC Yukon, Cadillac Escalade, Chevrolet Silverado 1500 and GMC Sierra 1500. Only versions of those vehicles built with the 5.3-liter V8 or 6.2-liter V8 and mated to the 10-speed automatic will have the tech removed from them. Only vehicles manufactured on or after June 7 will be affected. “By taking this measure, it will enable us to continue production of our high-demand full-size SUV and pickups as the industry continues to rebound and strengthen,” GM said in a statement. Those who ultimately buy one of these vehicles without start/stop technology will receive a $50 discount off MSRP for their troubles. Losing this fuel-saving tech could be a big negative for some, but we know many folks turn it off anyway. Not having to press the button to deactivate start/stop every time could actually be a positive if youÂ’re part of the camp who does that already. 2021 Cadillac Escalade Sport Platinum View 27 Photos On the downside, GM says “most of the affected vehicles will experience a minor reduction in fuel economy.” We donÂ’t have revised window stickers in hand to know how each model will be affected, but any 1 mpg reduction will be rather impactful for vehicles rated as low as these trucks already are. Any reduction will be seen in the city mpg rating, so take the kind of driving youÂ’re going to be doing into account before purchasing. When it comes to greenhouse gas compliance rules, GM says it doesnÂ’t foresee this impacting the companyÂ’s average fleet score. It also intends to begin adding start/stop back to these models as soon as possible, but there will be no retrofit effort made to fit the tech to vehicles already built without it. “Our supply chain organization continues to make strides working with our supply base to mitigate the near-term impacts of the semiconductor situation,” GMÂ’s statement reads. “GM continues to leverage every available semiconductor to build and ship our most popular and in-demand products, including our highly profitable full-size trucks and SUVs for our customers.