IL Insider: Cadillac Eyes Smaller Crossover, Compact Sedan for U.S.
Date posted: 08-22-2006
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DETROIT — Cadillac is considering the addition of a sub-$30,000 four-cylinder crossover vehicle to its U.S. lineup, part of an apparent plan to attack the lower end of the luxury segment.
Cadillac General Manager Jim Taylor confirmed the plans for the crossover to Inside Line, but didn't divulge many details.
"Everything is a hedge," Taylor said. "Customers don't count cylinders."
However, IL has learned from General Motors suppliers that Cadillac has tentative plans to add the new midsize crossover vehicle in mid-2009. Known internally as the BRX, the crossover would share basic architecture and components with the next-generation Chevrolet Equinox and Saturn Vue.
Cadillac also has plans to build and sell an updated version of its compact BLS sedan in North America in late 2009, according to GM suppliers. The new model would be slotted below the CTS in size and price, and would be based on the next-generation Epsilon global midsize architecture. It presumably would be offered in both front- and all-wheel-drive variants, with a choice of four-cylinder and V6 engines. The current BLS, which is built by Saab in Sweden, is sold only in Europe.
Taylor also said Cadillac's proposed V12 engine, once slated for use in the full-size Escalade utility vehicle, still has not been approved for production, indicating that the engine may have to be shelved because of fuel-economy and financial considerations. The 12-cylinder engine "is not dead," Taylor confirmed, saying it is still a "high desire" item, but "a tough one to justify," in terms of budget approval.
He added that Cadillac currently has "more interest in entry luxury" products than in the so-called "prestige luxury" segment that is still dominated by such European brands as Mercedes-Benz and BMW. Nevertheless, Taylor said a proposed Cadillac "super sedan," possibly equipped with the V12 and aimed at the S-Class and 7 Series, "is a necessity... but it's a question of when do we do it."
In the interim, Taylor said Cadillac planned to offer sport packages on the STS and DTS sedans, similar to the ones available on the SRX and CTS. Bundling macho wheels and a more aggressive front fascia, the package would be priced from around $3,500, he said, without specifying timing.
What this means to you: Cadillac appears to be shifting gears, refocusing on the lower end of the premium market while backpedaling on plans to enter the ultraluxury segment.