Cadillac designed the compact ATS to compete with the BMW 3 Series, but GM says the new Caddy is also cutting into CTS sales. backs that up with data showing potential buyers are cross-shopping the ATS with the CTS as well as the BMW.

Automotive News spoke to the head of Cadillac sales, Chase Hawkins, who admits The General expected the ATS to cannibalize sales of the CTS. But Hawkins says a plan is in place to deal with the drop in CTS sales: make fewer of them.

"We've planned for ATS to take some CTS customers out of the market who we otherwise would have seen," Hawkins tells AN. "We definitely are going to be producing fewer CTSes next year to create some of that space for ATS."

The next-generation CTS is expected to be larger and costlier, which should better separate the two stablemates in the marketplace. As the two models find their own niches, AN speculates a few more import buyers to come back to the iconic American brand.

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