General Motors has reportedly planning to cut prices for the 2015 CTS sedan in the US due to lack of demand for the vehicle.
A spokesman confirmed the reports and saying that the company has informed Cadillac dealers about the price cuts of up to $3,000 for three best-selling luxury, performance and premium packages.
Reuters cited Cadillac spokesman David Caldwell as saying that the base price of the 2015 model will remain $46,340.
The affected models are sold for 50,000 to $60,000 range and the decision was triggered after sale of CTS slumped 18% in December 2014.
Cadillac chief Johan de Nysschen previously claimed that the prices for the car will not chage, but the company was open to the idea of price cuts for the repackaging options.
AutoTrader.com senior analyst Michelle Krebs said: "After Cadillac launched the entry-level ATS, it got too aggressive on moving the price up of the redesigned CTS - and too optimistic about the sales volume at that price.
"Despite the CTS being a solid vehicle, the Cadillac brand still does not have the cachet to charge such high premiums yet."
