No Update for Cadillac Flagship CTS-V

The CTS-V is really a race car. It can run from zero to 60 in 3.9 seconds. It sells for as much as $73,000, which is considered a bargain for such a fast car. But, it does not have as many amenities as the other vehicles in the Cadillac model line

The new anchor of the General Motors Co. (NYSE: GM) Cadillac family is the recently updated CTS. It is priced at a level the middle tier buyer can afford — $45,000. However, Cadillac offers several high end versions of the car. One is called the V-sport, a name close enough to that of the V-series that many decide they can an own a car with a little less power, but one which confuses whether it is the top line race car, or simply a pumped up versions of the V. Regardless, Cadillac has cleverly priced the V-sport at the same level as the more powerful V-series. That completes a confusion which allows Cadillac to get over $70,000 for both cars.

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Cadillac has also decided to invest much of its marketing dollars down market. Its new ATS is the smallest Cadillac, and, at an entry price of $33,000, it competes with the new entry level models from Mercedes and BMW. Because the car has been well-reviewed, it is one of the few hits Cadillac has had against its German competition.  The ATS is also meant to draw young drivers, to offset sales to people over 60, which is that majority of Cadillac buyers.

Cadillac remains in a great deal of trouble. The top Japanese companies have entered the market — Toyota Motor Corp. (NYSE: TM) with its Lexus line, Honda Motor Co. (NYSE: HMC) with its Acura brand, and Nissan with its Infiniti line up. Cadillac has to push into this market which is already overshadowed by the sales of Mercedes and BMW.

It may be that the flagship CTS-V has not been updated because Cadillac cannot fight a war across half a dozen fronts.