Great car, but the Germans still dominate the segment.
You may recall back in early 2012 when Cadillac unveiled the ATS sport sedan and coupe. This, according to GM officials, was finally the car that was going to beat out the likes of the BMW 3 Series and Audi A4. Yes, the ATS is an excellent car. And yes, it can totally compete with the Germans. However, not enough people are buying them and Cadillac is now in a bind. According to Automotive News, the ATS has lagged behind its rivals in that "its market share has declined every year since 2013."
Not good. Part of the reason why is that sedans, in general, are losing popularity. Crossovers are what's hot. Another problem Cadillac is experiencing with the ATS is that its resale values are also falling, thus "making it harder and more expensive to offer a competitive lease." So what can be done to fix this? Price slashing. For the 2017 ATS, expect to find prices reduced between $650 and $1,100, depending on trim. In short, each trim level will get more features for less. The base 2.5-liter four-cylinder, for example, has been axed completely. The formerly optional 2.0-liter turbo four banger is now the base engine. The 3.6-liter V6 will remain the premium engine.
"We want to emphasize the 2.0-liter turbo and the car's features while attacking the market on the product side, rather than using increased incentives," a Cadillac official told Automotive News. However, the ATS's base price has now increased by around $1,500, to $35,000. Will this be enough to boost ATS sales? Obviously too early to tell but if this doesn't work then the ATS's future might be in question.