Cadillac Readying Entry-Level Model

The Mercedes-Benz CLA and Audi A3 are spurring other automakers to react.

Though the CLA-Class saw a slight price bump for the 2015 model year to push it over $30,000, the entry-level model from the German automaker along with the Audi A3 have spawned a new segment in the luxury market. Cadillac CEO Johan de Nysschen has acknowledged those entry-level models and the impact they had on ATS sales, which dropped 22 percent last year to 29,890 units sold. In comparison, the CLA sold 27,365 units in its first full year while the Audi A3 delivered 22,250 in about eight months.

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The American automaker’s CEO said that developing an entry-level sedan is a “big priority” for Cadillac but unlike the front-wheel drive competitors, the new model will be built on the same rear-wheel drive platform that underpins the ATS. Currently the ATS is priced at $34,985 including destination compared to the CLA, which starts at $31,750 and the A3, which is $31,690.

GALLERY: 2016 Cadillac ATS-V Coupe Live Photos

GALLERY: 2016 Cadillac ATS-V Sedan Live Photos

GALLERY: 2016 Cadillac ATS-V

[Source: Automotive News]

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