Why Cadillac reversed course on V-series strategy

DETROIT — Cadillac will make its performance lineup accessible to more consumers in an effort to differentiate itself in a dwindling market for smaller luxury sedans.

The General Motors brand said it will offer two V-Series versions of the 2020 CT4 and CT5 sedans — one directed to the everyday driver who wants some performance and one that's a more traditional, track-capable model. The strategy marks a change in direction for Cadillac, which has never offered more than one V-Series variant on any nameplate in the subbrand's 15-year history.

"There was, frankly, some people who were intimidated by the cars," GM President Mark Reuss said after unveiling the cars last week. "When we did a V series, they were hammers. … There's some intimidation there."

That goes for price as well as the vehicles' power. The entry-level V-Series package will be priced about $6,000 to $7,000 more than standard Sport trim levels, vs. about $30,000 for a V-Series version of today's Cadillacs. It also will offer different engine options, aesthetics and performance capabilities from the higher-end V-Series counterparts.

Reuss, who oversees Cadillac, said the company is not worried about diluting the V-series name with a lower-performance V-series model because the brand has "established" itself over the last 15 years.

V-Series customers, GM executives said, are the best advocates for Cadillac, and expanding that base will help the brand as it continues to launch a new or redesigned product roughly every six months through 2021. The CT5 is scheduled to arrive this fall, followed by the CT4 in early 2020, with the V-Series versions slated to reach dealerships shortly after the standard versions in both cases.

"Performance isn't going to go out of style and these sedans are really attacking a different play than what other people have," Reuss said. "I still think there's a lot of room for sedans here."

There's room, but it's shrinking at a fast pace. Since reaching nearly 535,000 units in the U.S. in 2015, sales of compact and subcompact luxury cars have dropped 30 percent to fewer than 373,000 units in 2018, according to the Automotive News Data Center.

The German luxury competitors continue to dominate the segments, with Audi, BMW and Mercedes-Benz combining for 66 percent of sales.

Last week's reveal represented the first time Cadillac has publicly shown the CT4. It gave little information about the vehicle, though specs released on the CT4-V show that it has the same wheelbase as the outgoing ATS-V but is about 3 inches longer and 200 pounds lighter.

The entry CT4-V is equipped with a 2.7-liter turbo engine rated at an estimated 320 hp and 369 pound-feet of torque. It also features "a unique three-step sliding camshaft" that helps optimize performance at all speeds, Cadillac said.

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The CT5, which Cadillac revealed at the New York auto show in April and has described as a compact car, effectively replaces the midsize CTS. The CT5-V will be powered by a 3.0-liter twin-turbo V-6 engine rated at an estimated 355 hp and 400 pound-feet of torque.

Both cars feature a 10-speed automatic transmission, magnetic ride control, and a host of performance parts and equipment. Also, both will offer Super Cruise, Cadillac's highway driver-assist program.