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Cadillac Working on New, Even Smaller Sedan?

Rumor / Comments

Yes, smaller than the ATS.

One of the hottest segments in the auto industry at the moment is the small and premium sector, for both crossovers and sedans. Examples include the BMW X1 and Mercedes CLA. At the same time, Cadillac is desperately trying to become a global player in the luxury car business. Because the ATS sedan and coupe are its smallest models, Cadillac executives are fully aware just how much money they're missing out on.

In an interview with Car and Driver, Cadillac marketing chief Uwe Ellinghaus strongly hinted that a new small sedan is in the works. He didn't reveal many details, but one thing was made clear: Cadillac has no intention to do what its German competitors have done: front-wheel-drive sedans. According to Ellinghaus: "Our future is rear-wheel drive and, of course, all-wheel drive where appropriate." It will be interesting to see how Cadillac pulls this one off. FWD is both cheaper and more spacious inside for buyers, hence the German thinking here. And when you look at the solid sales of the CLA and Audi A3 sedan, you have to consider whether Cadillac's RWD small sedan preference makes financial sense.

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A small RWD sedan will appeal to enthusiasts, but those shopping purely for exclusivity likely won't care about the way the car drives. For example, a few years ago BMW learned that 80 percent of 1 Series owners thought their car was RWD. They bought the car simply because it was affordable and was a BMW.