Cadillac is cutting the prices on the CTS after sales slumped 3.8% this year.

Hoping to reverse a sharp slump in sales of an otherwise well-reviewed new model, Cadillac is slashing the price of its midsize CTS sedan by as much as $3,000, while also adding more standard features.

The move comes as a rebuke to the strategy the maker had laid out with the hiring of new global President Johan de Nysschen just last summer. The goal was to nudge prices of new models upwards, more in line with those of competing European brands, such as Mercedes-Benz, BMW, and de Nysschen’s old employer, Audi.

But with sales sliding at a time when the rest of the auto industry – and the luxury market, in particular – is booming, General Motors officials apparently blinked, taking steps to put sales of the third-generation CTS back on track.

“Cadillac is moving in the right direction to challenge the best luxury brands from Europe, but GM’s premium brand is not there yet,” said Karl Brauer, a senior analyst at Kelley Blue Book. “It’s unfortunate Cadillac had to confirm this through such a high-profile series of events, as a price hike followed by a price drop only advertises the issue.”

The 2015 Cadillac CTS sedan adds connectivity, safety technology to award-winning luxury sport architecture.

After years of struggle, Cadillac appeared to be on a roll when it began introducing an assortment of new models, including the compact ATS sedan and coupe, the big XTS sedan, the redesigned CTS and a new version of the once wildly popular Escalade.

But the new full-size SUV was the only Cadillac model to experience a U.S. sales gain last year. The CTS was off 3.8%, the ATS down 22%, and the XTS tumbled 25.3%. The Cadillac brand, as a whole, was off 6.5%, at the same time the U.S. market was up 5.9%.

The situation wasn’t entirely all doom-and-gloom for Caddy. It was up more than 5% worldwide, largely due to a surge in demand from China, which is rapidly becoming the world’s largest luxury car market.

For his part, new Cadillac President de Nysschen has repeatedly noted the likelihood that sales would slip a bit as the marque aimed to realign its pricing in an effort to end the perception that it was nothing more than a bargain brand. But the slump appeared to have been more than expected.

Despite weak sales, Cadillac’s latest products – perhaps with the exception of the XTS – have received strongly favorable reviews. The ATS, in fact, was named North American Car of the Year by a panel of 50 U.S. and Canadian auto writers.

The third-generation CTS, meanwhile, was well received for its increased size, improved engines and added features. But its pricing raised flags.

Under the realignment, most V-6 versions will now see prices cut about $3,000, while most four-cylinder models will be reduced by $2,000. And the mid-range Luxury model will get another $2,200 worth of standard equipment.

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Prices will remain the same on both the base model, at $46,340; and on the twin-turbo CTS V-Sport, at $60,335.

(Click Here for details about TDB’s first drive in the 2016 CTS-V.)

Cadillac has yet to set pricing on the upcoming 640-horsepower CTS-V.

(To see why despite record sales, GM still finished second in China, Click Here.)

The maker has taken other steps recently to try to improve its standing. In December, it shuffled ad agencies. And it is getting ready to move its headquarters to Manhattan.

Perhaps more critical, long-term, the General Motors flagship brand is planning to launch an assortment of new products, including an all-new flagship sedan, the CT6, that will be revealed later this year.