The Cadillac ATS will be making its official debut at the North American International Auto Show this January in Detroit. This compact sedan will slot below the CTS line and take on Europe’s finest small luxury cars including the Audi A4 and BMW’s 3-Series. A 3.6-liter V-6 engine will be standard, but Cadillac will also offer a 2.0-liter turbocharged four that makes 270 horsepower.

European Competitors

Cadillac says that the ATS’ high performance turbocharged inline four will produce more power for its size than engines used by Mercedes-Benz, Audi and BMW. Direct injection will also enhance this engine which produces 260 foot-pounds of torque in a torque curve that ranges from 1,500 rpm to 5,800 rpm.

“This engine is the perfect match for the new ATS, which will be a refined performance luxury sedan,” said Don Butler, Cadillac vice president of Global Marketing. “The 2.0T has an exceptionally smooth and responsive power curve that will make the ATS nimble, quick and fun to drive.”

Engine Highlights

Highlights of the Cadillac engine include a direct-injection twin-cam, four-valve-per-cylinder engine with continuously variable valve timing; twin-scroll turbocharger with air-to-air intercooler; forged-steel crankshaft with modular balance shaft system; and a two-stage variable-displacement oil pump with jet-spray piston cooling. Friction has been reduced by 16 percent, allowing this engine to deliver power more efficiently.

“The 2.0T is one of the most advanced and efficient engines of its kind, and contributes to the ATS’s exceptional balance of performance and great fuel efficiency,” said Mike Anderson, chief engineer for the 2.0T engine.

By comparison, the ATS’ standard 3.6-liter engine produces just over 300 horsepower.  European models will also be outfitted with diesel engines, an engine option that won’t be made available for North American Cadillac fans at least for now.

Cadillac Brand

The Cadillac ATS will follow the Cadillac XTS to the market next summer, models that will fill important holes in the Cadillac line up. In recent months, Cadillac has had to rely upon just three product lines: its SRX crossover, the CTS and its Escalade SUV line for sales as it discontinued two of its larger models: the DTS and STS sedans. Sales fell in November 2011, but are still up for the year. Both new models are expected to help Cadillac gain additional traction in the highly competitive luxury car market, enabling GM’s pinnacle brand to take on BMW, Audi, Mercedes-Benz and Lexus more effectively.

Photo: General Motors

For as long as anyone can remember the Cadillac brand has stood for large luxury sedans, big on girth and featuring pillowy-soft rides. In recent years GM has been pouring its resources into its CTS portfolio, developing sedans, wagons and coupes for this European-styled sedan.

Product Changes

Concept Cadillac XTS Platinum Sedan

Yes, we still have the bloated Escalade and the large front wheel drive DTS to consider, but those vehicles aren’t likely to be around much longer or at least in their present form. The Escalade might eventually be remade into a Buick Enclave-like crossover while the DTS will join the STS in the model graveyard in the sky.

In the short run, a slightly larger sedan than the CTS will show up for the 2012 model year. Dubbed XTS, the vehicle has made its auto show rounds and has gone through the usual scrutiny by automotive critics who haven’t decided whether they like the car or not. No matter, the XTS or whatever it will be called, will be underpinned by the same platform powering the Buick LaCrosse. A 3.0-liter V6 seems likely with talk of a hybrid version too.

Big Cadillac

But, that still leaves Cadillac without a large sedan as the DTS’ days are numbered. We know that GM is looking at a compact Cadillac to slot below the CTS (ATS?) and the SRX will continue as the standard crossover for the brand. Personally, I can’t see General Motors voluntarily ceding a single sale to Hyundai when the BMW 7-Series size Hyundai Equus debuts later this year. That car could poach DTS sales and would, in my opinion, replace the DTS altogether as the livery car of choice if Cadillac abandoned the full sized sedan segment.

No fear, Ed is here. Ed Whitacre, that is.

According to Auto Week, GM’s CEO has greenlighted the production of a brand spanking new full sized, rear wheel drive Cadillac to compete against the likes of the Mercedes S-Class, Audi A8 and the BMW 7-Series. Yes, the Hyundai Equus too. That car might be based on a stretched version of the Sigma platform or at least borrows some of its parts. All wheel drive could be optional and, depending on GM’s fuel economy needs, might possibly include a hybrid model.

Model Change

Autoweek says that the new sedan would show up for the 2014 model year, two years after the DTS is discontinued. I doubt that scenario will unfold especially as the Hyundai Equus gains traction. Look for GM to extend the DTS out for an additional two years and introduce the all new sedan immediately thereafter.

Photo Credit: GM Corp.

When the CTS Coupe goes on sale this summer, it will be the first product covered under the new Cadillac Premium Care Maintenance plan.

Take that, Lincoln!

Following on the heels of the Ford Motor Company’s announcement that they were rolling out their own maintenance program for Lincoln, GM has done likewise for Cadillac.

But there is a bit of a twist to the news: my Cadillac contact has informed me that their program wasn’t in response to Lincoln’s announcement, rather it had been in the works for some time. Ford managed to scoop GM with their own announcement, but when you compare each plan you will see that the Cadillac plan matches BMW and trumps Lincoln.

The comprehensive Cadillac maintenance plan kicks in with 2011 models, but it isn’t limited to this summer only.  The CTS Coupe, which will debut later this summer, will be the first model to be covered under the Cadillac plan.

Matching BMW

The Cadillac plan is for four-years or 50,000 miles, matching the BMW plan. BMW has long had an edge in the luxury segment with its own plan, something BMW owners have gotten used to down through the years. BMW, Cadillac and Lincoln now possess the top maintenance plans for luxury makes although the Lincoln plan comes to an end on September 7. Look for the Ford Motor Company to revisit this issue as Cadillac moves ahead with its own plan.

“Cadillac is adding Premium Care Maintenance as a way to extend customer service beyond the sale,” said Kurt McNeil, vice president of Cadillac sales and service. “The program is designed to raise satisfaction for owners by ensuring access to expert service. It should lead to higher loyalty rates for dealers by establishing them as a valued resource for our customers.”

And that is the key to these types of plans: owner loyalty. Both Cadillac and Lincoln have long needed to come up with something to grab the attention of buyers particularly as both brands proceed with their respective makeovers.

Past Glory

As recently as the mid-1990s, Cadillac and Lincoln battled each other for luxury brand supremacy in the United States. But, a steady onslaught of competition from foreign makes including BMW, Mercedes and Lexus eroded both brands. Both now trail the Japanese and German segment leaders.

In recent years Cadillac has received an infusion of new product as evident in its CTS portfolio and SRX crossover. Lincoln now sells a number of new models too including the MKS sedan and MKT crossover. This fall, the MKZ will offer a hybrid model.

Winning Customers

Will customers take Cadillac up on their offer? My guess is that they will. The program will cost GM some money but then again when you are looking to expand your customer base, service incentives can go a long way toward distinguishing your brand from the competition.

Or in this case match BMW while edging out your American rival.

Today, Ritz is still the Ritz while Cadillac’s position in the luxury market is confused if not disjointed.

Cadillac Image

General Motors is trying to change all of that by first distancing itself from its luxury brand as far as mention of itself on Cadillac’s website or in print materials. To help bolster Cadillac’s image, the brand has tapped Ritz for assistance on how to remake itself, a tall order in these days of Mercedes, BMW and Lexus models dominating the niche.

According to Bloomberg News, Cadillac invited trainers from the Ritz-Carlton Hotel chain to its June 3 management meeting in a bid to help salespeople reconnect with Cadillac shoppers. Ritz is showing Cadillac how to win and serve customers, two areas where the brand is especially weak.

Aging Demographics

How damaged the Cadillac brand is remains one question not easily answered. The average age of a Cadillac buyer is 62, while the average BMW owner is 49 and Mercedes owner 53. The brand’s appeal to the senior set won’t help it connect to younger buyers, who are also usually much more affluent and willing to plunk down the big bucks for a luxury car.

One way Ritz has been able to keep customers and satisfy them is to give their employees up to $2000 per customer per day to wow them. If that customer has a bad experience, Ritz employees can do what it takes to satisfy them, perhaps retaining them as future customers with this special level of service.

Consistent Message

At the moment, Cadillac doesn’t offer such incentives which would need to come from the dealership as they are privately owned. The Ritz-Carlton team is being used by Cadillac to help the brand create a consistent message across its entire network including making available what they call “wow” money to win the hearts and wallets of their customers.

Not all the news for Cadillac is bad as the brand is seeing strong demand for its SRX crossover and its CTS line is expanding once again, this time to include a coupe.

But, there are enough older models on hand including the DTS and Escalade, vehicles which detract from the Cadillac brand.

Say it ain't so: the Cadillac Converj is dead.

General Motors seems to be worried about how the automaker is recovering post-bankruptcy. And that may not be a bad thing especially since that also means GM is living in reality, not wishful thinking.

Under the old GM, losing hundreds of millions of dollars each week wasn’t taken as seriously as it should have been. That sort of disconnect hastened the company’s decline, eventually leading to bankruptcy and becoming a ward of the state. Rick Wagoner may have been a gifted speaker, but while he spoke GM burned through huge wads of cash.

Impatient GM

Today, there is a strong undercurrent of impatience running through GM world headquarters at RenCen and around the world. GM not only has to rebound but they have to do it quickly. Yes, US sales were up in February but they aren’t where they should be. Worse, the company hasn’t capitalized fully on Toyota’s misfortunes and they also ceded the top position to their arch-rival, Ford. That latter event was the most painful one to bear coming from the only one of the three domestic producers not to go bankrupt.

Which leads to what GM did earlier this week: reshuffle the deck. Again.

On Tuesday, GM announced that several people were having their responsibilities changed including Susan Docherty. The one-time head of the Buick brand has gone through several job changes over the past year, but at least she can say she still has a job unlike three Cadillac executives who were booted: Steve Shannon, John Howell and Jay Spenchian.

Why the shake up at Cadillac? Sales. Sales. Sales.

Sinking Sales

In 2009, Cadillac saw its sales fall by one-third, the steepest decline of any of the surviving four GM brands. Year to date Cadillac is up by 14 percent, but that pace is below expectations. Meanwhile, sales for rival Lincoln have been increasing and the entire luxury market seems to be rebounding.

With a new SRX crossover and expanded CTS line in play, Cadillac has the product to attract buyers. GM just isn’t confident that their tools (executives) are a good fit, thus the shake up. And with Ed Whitacre at the helm quicker results across the board are a must for GM.

Converj Collapse?

Not verified yet this morning but something of major interest are rumors circulating that the Cadillac Converj, an upscale version of the electrified Chevrolet Volt, is dead. I find that hard to believe but if it is true my thinking is that GM will introduce a Buick version of the Volt instead. Still, with the Lexus HS250h marketed as the upscale version of the Toyota Prius, what will Cadillac get? The XTS Platinum, perhaps.

The month of May cannot come soon enough for GM because that is when the first compact Chevrolet Cruze models roll off of a Lordstown, Ohio assembly line. Chevrolet is what is really holding up GM, delivering about 70 percent of all sales with the Cruze expected to help the brand gain traction in the ultra-competitive compact car market.

Time is of the essence for GM who must prove ASAP that they are a viable entity. Unless the automaker gets the upper hand soon, a rebounding Toyota and surging Ford may prove to be the least of their problems.

Photo Credit: GM Corp.

Cadillac Europe

Speaking of GM Europe, Cadillac has maintained a low profile on the continent, a small time player whose separate distribution network has been in tatters since its importer, Kroymans Corporation, began reporting its own financial problems in early 2009. That led to Cadillac pulling out of half of the 25 European markets it had been active in.

Under Kroymans, Cadillac was never able to sell more than 5000 cars annually across Europe, an insignificant number in a land dominated by German, British, French, Italian, and Swedish luxury makes. When GM signed on with Kroymans in 2003 the automaker had hopes of selling as many as 20,000 Cadillac models annually across Europe.

Geneva Auto Show

GM has announced plans to take on the European market much more aggressively forming a new organization, Cadillac Europe, to spearhead that effort. The new organization will be tasked with managing the importing, distribution, and marketing of select Cadillac models for Europe.

“Europe is an important market for Cadillac,” said Bryan Nesbitt, Cadillac general manager. “Re-establishing distribution of our premium offerings is good news for those who seek import exclusiveness.”

GM will use next month’s Geneva Auto Show as the launching pad for Cadillac Europe. At this auto show, the Cadillac CTS coupe will be unveiled and it will join other CTS models and the SRX as vehicles to be sold across the continent. The compact Cadillac BLS, the only model built exclusively for Europe was discontinued last summer.

Hybrid Cadillac

Interestingly, GM has decided to showcase its Cadillac Escalade Hybrid at the Geneva show. This three ton model seems ill suited for Europe, but with active fuel management allowing it to run on four cylinders at times and hybrid technology, GM may be thinking that its luxury SUV may find a home in select European markets.

In the Mar. 26, 2009 issue of “Auto Observer,” Edmunds reported that GM had canceled plans to build a 2.9-liter V6 turbodiesel for the European market, a decision which seems likely will need to be reversed. 54 percent of all light vehicles sold in Europe are powered by diesels, which means Cadillac will not be competitive if only gas powered models are offered.

Source: GM Corp.

Cadillac XTS Platinum Concept: Surprises, Indeed!

I am stunned. Well at least I can say that I am surprised.

I accurately predicted well in advance of the 2010 North American International Auto Show (NAIAS) that the rumored Cadillac model to be unveiled this week would be the XTS, a sedan slated to replace both the STS and DTS.

Hybrid Powered Luxury Sedan

What I did not expect was that the model shown would be a concept nor did I foresee that GM had some other surprises to reveal besides a beautiful design: the car features a plug-in hybrid propulsion system which will include Cadillac’s 3.6L V-6 Direct Injection gas engine. Yes, if GM goes ahead with the model, it would be a hybrid from the get-go, offering all of the interior room expected in a five-passenger flagship sedan, but with excellent fuel mileage to boot.

That would also mean that V8 power would not be offered, the first time in who knows how long that the largest Cadillac sedan did not come so equipped.

Instead, GM envisions that the all wheel drive Cadillac XTS would tap a combination of engine power and electric power or engine power only, to move the sedan. This pairing of a direct injection V-6 and the PHEV system featuring fully electric variable drive would provide an estimated 350 horsepower and 295 lb.-ft. of torque. Quite good numbers for a car of its size.

Oh, by the way, that would be a lithium-ion battery pack for the XTS, the same arrangement for the upcoming Chevy Volt.

Big Wheels, Big Tires

Cadillac says that the XTS features four wheel independent suspension with magnetic ride control along with four-wheel disc brakes with electric park brake system. Yes, those are twenty inch wheels and tires which do not look enormous; instead they blend in quite nicely with the Cadillac XTS.

Because the XTS is a concept, the interior is subject to change, but features plenty of cabin room, the requisite touches of wood, aluminum, and leather, as well as all of today’s expected technologies and probably a few that GM has yet to release.

Will the Cadillac XTS Platinum pass from concept to reality? I believe so.

STS, DTS About Done

The STS and DTS are toward the end of their respective life spans, thus something new needs to take their place. I can also see a hybrid model gaining acceptance as it offers perhaps the best way for GM to give customers a large sedan while meeting stringent US fuel economy numbers set to kick in over the next few years.

With the CTS line just about filled out and a new SRX on the market, the XTS could go far in lifting Cadillac’s stature amongst the global luxury brands. And that would go far in helping GM continue down the road to corporate recovery.

Source: GM Corp.

New Products

Though GM hasn’t named specific models slated for its accelerated production cycle, I believe that the following represents the company’s strategy going forward brand by brand:

Cadillac – The CTS line is almost complete, giving Cadillac a world class mid-size car line that competes nicely against BMW, Mercedes, and Lexus. Next up is the replacement for the STS and DTS, which GM has code-named XTS. Ideally, GM would stretch the current CTS sedan to accommodate the model, buying it some time and saving money until a fresh model could be released in 2015. But I don’t see that happening. Instead, expect some sort of front wheel drive sedan arriving in 2012.

Expect the Converj to arrive in 2012, a car based on the Chevy Volt platform. The SRX is all new while the Escalade is tired and in need of a crossover body ala Buick Enclave. Expect that to happen soon after the XTS hits the market. Beyond that, if Cadillac gains traction, the line will expand with a car slotted below the CTS and perhaps a luxury two seater. Hybrids will be offered fleet-wide by 2015.

Buick – The Lucerne is on its last legs which means that the LaCrosse will take over as the largest car in Buick’s line. I expect that we’ll see a refreshed Enclave for the 2012 model year, while a baby Buick, smaller than the Regal, will appear about the same time.

My thinking is that GM will clarify Buick’s direction by adding fresh new models once the baby Buick hits the market.

Chevrolet – We know the Malibu is being moved up but what about the aged Impala? I can’t see GM backing off in the police pursuit vehicle market, not with Ford relying on the all new Taurus and with Carbon Motors set to come out with their dedicated police cruiser in 2012. Look for an all new Impala in two years, perhaps based on a stretched Malibu platform to complement the Holden Chevy Caprice import which will be sold in low numbers.

The remainder of Chevrolet’s line up is solid with the compact Chevy Cruze ready to appear next summer and with a smaller, Beat-type car to follow. A new Aveo or Aveo replacement will show up within the next two years, while the HHR will be dropped and several truck and SUV models will be modified. I see Chevrolet relying a lot more on crossovers like the Traverse and Equinox, perhaps dropping the Tahoe and/or Suburban if they present a drag on fuel economy numbers and customer interest wanes.

Finally, can we expect a new Corvette soon? Yes, by 2012 the C7 ‘Vette should be in showrooms, parked next to the extended Camaro family.

GMC – Whatever GM does for Chevrolet trucks will be done for GMC. It remains a mystery to me why these two brands are still competing. Personally, I would have converted GMC into Chevrolet Trucks and kept Pontiac. Then again, Fritz never asked me. R.I.P. Pontiac G8.

Financial Position

Much of what is being considered depends on GM’s financial position, gas prices, demand for alternate vehicles, and any number of other market changes that will occur over the next 3-5 years. GM has been given a huge second chance that no business of its size has ever received, so let’s hope that top management gets it right and remakes the automaker into a profitable money-making entity once again.

Plus, I want GM to pay back its loans and for the federal government to recoup the $50+ billion of taxpayer money sunk into the company and now treated as equity. I don’t think that is too much to ask!

2011 Cadillac CTS Coupe

As GM continues to find a place in its new post bankruptcy world, Cadillac will play a significant role in bolstering the automaker. Larger, more luxurious vehicles also bring in more profits, just the right tonic needed for any ailing automaker.

CTS Line

The CTS line has been a success story for Cadillac since it was first introduced in 2003. Initially offered as a mid-size sedan, it has since been followed up by a potent V-Series sedan and a sport wagon. For 2008, the CTS was vastly improved, demonstrating to the world that Cadillac can build a world class European style sport sedan while dispelling the notion that the brand offers nothing but hulking land yachts.

At the 2008 North American International Auto Show (NAIAS) in Detroit, GM took the wraps off of the CTS Coupe concept, a stunningly beautiful car that many enthusiasts hoped would extend the CTS franchise. Last summer, GM confirmed that the CTS coupe was on its way, but was being vague as to its actual release date. Yesterday, GM confirmed that the coupe will be in Cadillac showrooms next spring, with its official global debut set for the 2009 Los Angeles Auto Show on December 2nd.

New Followers

A lot will be riding on the coupe which GM says will be the focal point of Cadillac. GM is not only interested in winning current Cadillac fans to the new model, but attracting a new generation of fans including current BMW and Mercedes drivers.

The Cadillac CTS Coupe will offer a 2+2 seating configuration. Though the concept did not include a B-Pillar, the production model will. However, close scrutiny at the photography released by GM of the preproduction model reveals a car that is quite close in appearance to the concept. GM says that the coupe will only share the instrument panel, console, headlamps, front fenders and grille with the sedan while offering a deeply angled windshield, integrated rear spoiler, sculpted lower front fascia, and other distinguishing touches.

A 3.6L VVT engine – the same engine found in a number of GM vehicles lately including the Chevrolet Camaro – will be standard and paired with a six-speed manual transmission. That engine produces 304 horsepower, runs on regular gasoline and can be optionally paired with an automatic transmission.

Cadillac plans to offer a pair of suspension-tuning levels including a Performance Package with 18-inch wheels and all-season tires (available in both RWD and AWD,) and the Summer Tire Performance Package, with 19-inch tires and wheels and a higher level of road holding capability. StabiliTrak, the advanced electronic chassis control system available on many GM models, is standard with the Cadillac CTS Coupe.

Mission Accomplished

Along with the standard and V-Series sedan, sport wagon, and the coupe, a V-Series coupe and sport wagon are also being planned. And with the SRX crossover already on the market, the entire lower end of the Cadillac market will soon be complete leaving just the Escalade and the replacement for the STS and DTS to come forth over the next few years.

Photo Credit: GM Corp.

PR Forces Gone Wild

Thanks to a flurry of activity on GM’s PR people over the past several weeks, what GM will look like in about three years hence is becoming clearer. There are still some loose ends to be tied and final decisions made, but based on what I’ve read with a little conjecture thrown in, the following is how I expect GM to look like in August 2012:

Cadillac – Lincoln may be narrowing the sales gap, but Cadillac is looking to do battle with Audi, Mercedes and BMW instead of worrying about what the Ford Motor Company is doing. If GM is successful, Cadillac will retain its top American luxury brand position, while offering a compelling reason for German luxury car buyers to make the switch. Cadillac will complete the CTS line in 2010 by offering a coupe to go along with the wagon and sedan, selling V-Series models of each. DTS & STS will be ditched in favor of one larger model, dubbed XTS. A smaller, 3-Series fighter, code-named the ATS will become the Baby Caddy while the SRX will remain the entry level crossover. Expect the Escalade to die, replaced by a Buick Enclave type crossover. The Cadillac Converj concept will become a reality within a year of the Volt’s launch.

Buick – Just three models fill out the Buick fleet, in the North American market that is. The Lucerne will go away while the LaCrosse and Enclave will live on. A smaller Traverse based crossover will join the line up and be offered as a PHEV too. Look for the Regal’s return, slotted below the LaCrosse with at least one more model, a Chevy Aveo based crossover being added. Look for some sort of Voltec vehicle to join Buick as soon as possible.

Chevrolet – When you make up 60% of GM’s US sales, then a lot of love should come your way. The Impala is tired looking and needing a makeover, but all we know is that the next generation Malibu will hit the streets in 2012. Look for an updated Corvette around that time with several newer, smaller models joining the line up including the Spark, Beat and maybe something similar to the Toyota iQ. I expect that GM will delay the release of its next generation trucks and SUVs, choosing to pour all of its resources into hybrid and electric technology, ala the Volt. The Chevy Cruze will quickly become the brand’s best seller by 2012 and the Camaro rag top will be really hot!

GMC – What will become of GMC? The same plan for Chevy Trucks will be used to fortify GMC. However, I expect that GM may try to bring in one or two truly unique or specially equipped models to help distinguish GMC. After all, when paired with Buick, GMC has a premium image that it wants to maintain. Now could be a good time to differentiate GMC and Chevrolet by tweaking both lines enough to help GM capture an additional slice of the truck market.

Time Is Of The Essence

Of course, the next few months will determine if GM’s plans have a chance of succeeding. The automaker must win back lost customers, go after younger buyers and must NEVER borrow another dollar from the federal government again or otherwise risk the wrath of a segment of the American populace (me included) who would rather pull the plug than pay out one more dime!

See Also — Ford 2010: Arriving Sooner Than You Think!