DETROIT -- Cadillac will offer a lower-priced entry-level version of the CTS sedan with a smaller engine for the 2005 model year.
The division will replace the base model's 3.2-liter V-6 and lower the price slightly from the current base of $31,345, including destination. The new engine will be a 2.8-liter V-6.
John Howell, Cadillac product director, says the decision was forced on Cadillac because the 3.2-liter V-6 is going out of production. But he says Cadillac also wants to be competitive with such rivals as the BMW 325i, starting at $28,495.
"We have a lot of competition in that part of the market," Howell says.
The entry-luxury segment will see more entries priced between $20,000 and $27,000 with prestige-brand compacts such as the Audi A3 and General Motors' Saab 9-2x.
Although the CTS is in a different segment, it could be cross-shopped with vehicles in that price range, Howell says. The base CTS price won't be as low as $27,000, but it shouldn't be too far above that, he says.
The 2.8-liter V-6 will make 210 hp and 195 pounds-feet of torque, compared with 220 hp and 220 pounds-feet of torque for the 3.2-liter V-6.
The new engine is part of the same "high-feature V-6" engine family as the CTS' 3.6-liter V-6, Howell says.
Howell says about 80 percent of CTS buyers opt for the 3.6-liter engine.