Cadillac Cuts CTS Sport Wagon Pricing by $1300

As part of its new pricing strategy, Cadillac has cut nearly $1300 off the window sticker of the CTS Sport Wagon, bringing its base price to $39,150.

This means that those interested in Cadillac’s new wagon can consider one without crossing over the $40,000 psychological barrier. That improved price is still about $3000 more than a base 2010 CTS sedan and about $5000 above a base SRX crossover, which is now Cadillac’s least expensive vehicle.

Although both the SRX and CTS wagon are five-door Cadillacs, Cadillac spokesman David Caldwell said the SRX has little to do with the lowered pricing.

“This move is really just about making some adjustments to our marketing approach – to strengthen our position with CTS in its competitive class,” Caldwell said.

Since the latest generation CTS went on sale in model year 2008, pricing has risen about $7000, Caldwell said. Higher average transaction and base prices means the CTS is moving into a clearer pricing position as a BMW 5 Series and Audi A6 fighter, making room for the smaller rear-wheel drive entry-level sedan on the way.

The SRX crossover needs no price cut to move off dealer lots, but earlier this month, Cadillac had a five-month supply of the CTS. A price reduction like this should help maintain the brand’s momentum, as should the $1000 incentives on the CTS sedan and wagon currently being offered.

“We hope to extend the momentum of strong Cadillac sales in the latter stages of 2009, combined with some optimism that the general marketplace is recovering,” Caldwell said.

It’s difficult to believe too much cannibalization of sales resulting from CTS wagon shoppers choosing the cheaper SRX crossover instead, but lowering the price and adding incentives should help. USA Today reports that GM expects a majority of SRX crossovers to be bought by women and the CTS wagon to attract men. The price adjustment should enhance leasing conditions, as well.

Source: Cadillac, USA Today