Cadillac Considering Smaller Premium Model

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As it works to expand its global presence, Cadillac realizes it needs a smaller model than the new ATS as well as diesel engines.

The new Cadillac ATS has so far been a huge success for the American automaker, holding its own against European benchmarks like the BMW 3 Series and Audi A4. In other words, Cadillac did its homework extremely well. Although it's helping to increase sales in both the US and China - a vital expansion market for GM - Cadillac has realized that the ATS is actually still a bit too large for total global appeal. So where's it underperforming?

Europe, partly because streets there are narrower and buyers view models like the Audi A3 as a more viable premium choice. In addition, Cadillac realizes it must add a diesel powertrain lineup if it ever wants to truly attract Europeans away from more traditional luxury brands. A smaller Cadillac sport sedan could also play well in China where luxury car sales are red hot at the moment. A new CTS is on its way, the front-drive XTS is continuing its global roll-out, and a new rear-drive large sedan is also planned. But if Cadillac wants to dice it with the Europeans at home and abroad, it's also going to need something smaller.

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