Cadillac has formally announced pricing for its all-new entry-level sedan and it comes in cheaper than the ATS it replaces. Cadillac says the 2020 CT4 will start at $33,990.

The CT4 is based on an updated version of the Alpha architecture that underpinned the former ATS, which started at $36,490 during the 2019 model year. The smaller price point is impressive given the CT4 is rear-wheel drive and arguably offers a better interior than the ATS. That said, CT4 does offer less power. It’s base engine is a turbocharged 2.0-liter inline-four with 237 horsepower and 257 pound-feet of torque.

CT4 buyers wanting a little more gusto can opt for an optional turbocharged 2.7-liter inline-four that churns out 309 horsepower and 358 pound-feet of torque. If that isn’t enough either, the CT4-V has already been announced with the same 2.7-liter engine, but with power levels at 325 horsepower and 380 pound-feet.

Cadillac has already confirmed plans to offer a hotter CT4-V, likely with the brand’s exclusive Blackwing V-8 engine.

Back to the CT4’s pricing. At $33,990, the car will clearly be competing with the likes of the Audi A3 and Mercedes-Benz A Class, which are both smaller than the CT4. This strategy is intentional from Cadillac as the brand aims to bring more value to its sedan lineup by repositioning the CT4 and CT5 versus the ATS and CTS they respectively replace.

Order banks for the 2020 Cadillac CT4 will open up shortly, with the car slated to start hitting dealerships by the end of the year (depending on GM’s pending labor strike).

Trim Level Base Price
Cadillac CT4 $33,990
Cadillac CT4 AWD $36,590
Cadillac CT4-V $45,490
Cadillac CT4-V AWD  $46,590