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Cadillac drops the base engine in the 2017 ATS

Cadillac, in an effort to boost sales of the slow moving ATS, is making some changes to the 2017 model. Most notably, the luxury manufacturer is dropping the base 2.5-liter normally-aspirated four-cylinder engine from the lineup, leaving the 272 hp 2.0-liter turbocharged four as the base engine. The base 2.0-liter ATS will start at $35,590, $1,380 more than the 2016 model, though that's partially offset by more standard equipment. The base model now comes standard with Cadillac's controversial CUE infotainment system with an 8-inch touchscreen display, a Bose surround-sound speaker system, and a backup camera. Despite the bump in price for the base model, all other ATS trim levels will see prices reduced between $650 and $1,100, depending on the model. The ATS was designed to be Cadillac's answer to the BMW 3-Series and Mercedes-Benz C-Class. Though the ATS was originally released at a time where the Germans were slightly off their game, it's never quite matched up in terms of performance or customer perception posting disappointing sales figures compared to the competition. Cadillac has had problems getting customers into cars, and few ATS customers are converts from luxury competition. In order to offload inventory and lure in new customers, the company has previously been forced to offer big lease deals. Many of these customers have come over from more mainstream brands like Chevrolet and Ford. ATS sales have fallen 23 percent through May versus 2015. The car's market share has fallen every year since 2013, currently occupying just 4.5 percent of the compact luxury market. Unless Cadillac can offer some truly amazing deals, we don't expect many shoppers to buy American over the strong German competition. Related video: Cadillac Luxury Sedan

GM lays off 450 at Lansing Grand River Assembly

General Motors will lay off 450 employees at its Lansing Grand River factory, The Detroit News reports, which is 100 more than the company said it'd be letting go last month. Lansing Grand River Assembly currently builds the Cadillac ATS and CTS, both of which have suffered sluggish sales, with the smaller sedan down 20 percent through last month and the larger model down 2.3 percent, The Detroit News reports. "We are adjusting plant production capacity to better align with market demand. Beginning in January 2015, the plant will operate on a single shift," a GM statement read, before explaining that not all the laid off Grand River employees will be jobless. Of the employees that have been laid off to make room for the single work shift, around 200 will transfer to the Lansing Delta Township factory, home of the Lambda-platform crossovers, GM's statement confirmed. The News expects this one-shift arrangement to continue until at least late next year, when the Alpha-platform Chevy Camaro transitions from General Motors' Oshawa, Ontario factory to Lansing. Cadillac President Johan de Nysschen said at last month's LA Auto Show, "It may not necessarily be permanent, a time may come when we've gained momentum and we can reinstate it. But for now, the adjustment to production capacity is in alignment with our plans for 2015."

All-new 2019 Cadillac XT4 crossover debuts in New York

Cadillac spent years and years improving its mainline sedans, the CTS and ATS, turning them into awfully good impressions of BMWs from a few years before. The thing is, great sedans aren't selling, and crossovers sure are. Cadillac's XT5 is the only crossover in the lineup, something that's had American Cadillac dealers gnashing their teeth and wailing — although anyone they can upsell into an Escalade can staunch the bleeding. That brings us to the new XT4, which is smaller than the XT5 but even sharper than its bigger sibling. Let's take a closer look at this new two-row luxury crossover. For one, it's based on what Cadillac calls a unique platform. That may be true, technically, although it's likely related to the Equinox/Terrain on some level. Platforms are becoming quite flexible: Look at Volkswagen's MQB, under everything from Euro hatches smaller than our Golf to the three-row Atlas. Whatever else it is underneath the skin, all XT4s will share one powertrain: the corporate 2.0-liter turbocharged inline-four, paired to a nine-speed automatic transmission. View 14 Photos The engine puts out a healthy 237 horsepower and 258 pound-feet of torque, putting it just a hair underneath its closest domestic rival, the Lincoln MKC with the 2.0-liter EcoBoost. Of course, the 2.3-liter MKC beats the XT4 handily, but that's another story. Power is produced with the help of a twin-scroll turbocharger. All-wheel drive is available, with a driver-selectable rear axle disconnect to save a small amount of rolling friction. Cadillac estimates it'll be good for 30 MPG on the freeway, but we haven't seen official results to confirm that. A few other changes that'll affect driving: electro-hydraulic brake assist, a first for Cadillac and mainly a fuel-saving measure; and Continuous Damping Control, which alters the damper's valve continuously based on a number of parameters. It's almost certainly used here because it's lighter and less expensive than air suspension or MagneRide, and it is optional on XT4. CDC or no, all XT4s utilize a front strut and five-link rear suspension. All XT4s also ride on 18-inch wheels in various designs. The trim strategy is mildly interesting. The base model is the Luxury, and then you can choose a Sport (black exterior trim, unique wheels) or a Premium Luxury (bright trim and satin-brushed accents). The interior options are suitably upscale and premium, and we'll have more to say about them a little later when we can see this car up close.