Cadillac Launches Supercar CTS-V, but Can It Match BMW and Mercedes?

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By Douglas A. McIntyre Published
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General Motor Co.’s (NYSE: GM) Cadillac division launched its new supercar, the CTS-V. It is a follow on to the earlier versions. Despite its impressive features, Cadillac management ought to worry about whether they have priced the car too high. BMW and Mercedes have a brand advantage that Cadillac cannot overcome via price, anyway.

The CTS-V’s features, which are meant to be part of the Cadillac “reinvention,” for the most part, challenge BMW M-Series and Mercedes AMG cars. The Cadillac’s speed and design aim it at the BMW M5 Sedan, which has a base price is $93,600. The Mercedes vehicle in the supercar midsized sedan market is the E63. It has Mercedes’ 4MATIC all-wheel drive system, and its base price is $101,700.

However, a Cadillac is not a BMW or Mercedes, although to lovers of American cars, that may not make a difference. People who prefer U.S. cars will not allow Cadillac to edge the Germans, which have American market shares that dwarf Cadillac’s. Supercars are not meant to be sold in large numbers, but they are brand flagships.

The CTS-V has a base price of $83,995, which is below the M5 Sedan, but not steeply below.

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The CST-V is unquestionably a car that has few competitors among the Germans. Its performance can certainly match theirs:

Cadillac’s new 2016 V-Series models represent a significant expansion of the brand’s elite, high-performance line. Not only are the new V-Series cars elevated in terms of performance, they now reach a broader spectrum of drivers by presenting two distinct personalities, size categories and price points.

With a top speed of 200 mph and 0-60 performance in 3.7 seconds, the CTS-V is the most powerful car in Cadillac’s 112-year history

As for GM’s comments about the CTS-V’s engine:

Equipped with a 6.2L supercharged V-8 and an eight-speed automatic transmission that offers full manual control via steering wheel paddles, the CTS-V has more horsepower (640 hp/477 kW) and more torque (630 lb-ft/855 Nm) than the Mercedes-Benz 5.5L biturbo V-8 and the BMW M-series 4.4L TwinPower V-8.

A speed difference of a few tenths of a second probably will not sway most luxury supercar buyers away from BMW and Mercedes.

Also, it is the media that review these cars, and the customers that buy them, that will determine the CTS-V’s fate. Based on brand power, its sits well behind its German rivals.

ALSO READ: 10 Cars Americans Do Not Want to Buy

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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