Photo Credit: ChuckVH on Flickr

Now your choice for a nice small sedan just got more crowded, GM will be releasing the 2013 Cadillac ATS. One more choice while shopping for a small luxury sedan.  A brief overview of the ATS from USA Today

Cadillac ATS, General Motors’ bid to compete in the entry-level luxury sedan sedan, will start at $33,990, the automaker says. The rear-wheel drive compact will range in price up to $42,090 for a model with a 3.6-liter, V-6 engine, 320 horsepower, Cadillac’s new CUE digital connectivity system, adaptive start and other features.

The CUE system is what could set the little Cadillac apart. Among all its cool feature, it lets drivers control some functions with a wave of the hand, not just fingers on a display screen.

In choosing its above $30,000 starting price, Cadillac is wading fearlessly up against its German and Japanese competition:

Lexus IS starts at $33,595, Mercedes-Benz C-class comes in at $34,800 and the BMW 335i is $34,900. All those prices are before shipping is added.

I can relate to this as I shopped in this segment last year, choosing the BMW 3-series over the competition.

At the time, we compared the BMW 3-series, Lexus IS, Mercedes-Benz C class and the Infiniti G series. We tried to compare the CTS with this bunch as the new model really looked good on the road and on paper, but the numbers didn’t compare with what the other cars offered. To be honest, it didn’t live up to the price tag in comparison to the German and Japanese competition.

The final decision for us was the driving experience, pricing/perks and long-term options (we would much quicker get into an X5 than a ML, RX or Escalade, in that order – sorry Infiniti).

I asked the “boss” after reading this story, “would you have wanted the CTS if it was priced close the 3-series? Cadillac is launching a new model to directly compete.”

She gave a very frank statement, “no, Cadillac needs to make their CTS compete with them.”

I can see her point, it was quite difficult for Lexus to gain market share when they released the IS line-up, a bit easier for Infiniti as it was just an overhaul, not a new introduction. Both had to fight to be mentioned in the same breath as the long standing 3-series and C-class.

Is there room in the market for compact sedans? Yes.

Does the public want more options to choose from? Yes.

Is it a good price-point? Obviously, yes.

Does Cadillac really want to wander down the road they did about 10 years ago with new models? I drove a CTS for about a month then, and it’s taken until now for them to get it right. I would really hope to one day compare side by side American products with and import, without it needing to be the top-top of the line.

For example, if Top-Gear and the rest of the motoring world is really impressed with the CTS-V it’s a huge win for GM, and American cars in general. But seriously:

1) why can just the Cadillac CTS compare? No one buying a 5-series or E-class is looking at the CTS. And more importantly

2) I wouldn’t buy it until its 3-years old, and has depreciated substantially far more than its counterparts. Then it’s a deal and on my radar.

Maybe that’s why we see more 3-5 year old Cadillacs during our daily commute? If this theory is true, then her statement above should also be true, “they need to make the CTS compete.”

Constantly introducing new models doesn’t work, you’ll look like -err, GM. It seems like what you did wasn’t good enough so you have to replace it. Tried, tested and true – the best GM vehicles are the Silverado/Sierra, Corvette, Tahoe/Suburban/Yukon/Escalade (because it’s the same). Why? Because you can look up the 1970′s version. Because your neighbor had one. Because people know what you’ve got. There’s history, an established reputation, and expectations for the client before walking into a showroom.

If Cadillac could have more positive branding by keeping faith in the existing models as the general public sees, then they will sell more cars. Look at generation 1 vs 2 of the CTS and Escalade, just saying. Even include the dismal hatch/wagon for version 2… Get that out of here!

Please don’t take the Mercedes Benz approach to make a car to satisfy every person; then when you make something great, no one will believe it was you.