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GM Cadillac chief: New CT5 will replace 3 sedans; EVs coming

DETROIT - The head of General Motors' Cadillac luxury division said on Thursday the brand will shrink its lineup of sedans and expand its offerings of sport utility vehicles and hybrid and electric vehicles in response to market shifts. Expanding Cadillac's global sales is central to GM's overall profit strategy, and Cadillac has reported a 27 percent increase in worldwide sales through the first half of the year. However, in the United States, now the brand's second largest market behind China, Cadillac sales are down 1.6 percent and combined sales of the brand's four sedan models have plummeted 16.3 percent through the first half of the year. That has forced GM to order layoffs at two Michigan factories that build Cadillac cars, and raised questions about the long term future of the plants. "We have to rebalance our sedan portfolio," Johan de Nysschen told Reuters in interview, offering new details about the strategy. Cadillac will not directly replace the current XTS, CTS or ATS sedans when they end their life cycles in 2019, he said. Instead, Cadillac will use a single new car called the CT5 to appeal to consumers shopping for sedans priced between $35,000 and $45,000. New versions of the CT6 sedan will be offered to customers who want a larger car starting at $50,000. Sources had told Reuters last week that GM was considering ending production on six cars including the CT6 and XTS and models from Chevrolet and Buick. That report now appears only half-right as far as Cadillac is concerned. The new CT5 will be built at a factory near Lansing, Michigan, that currently builds the slow-selling Cadillac ATS and CTS models. A small luxury sedan to compete with the Audi A3 will be built in the same plant, de Nysschen said. Cadillac will offer more SUVs, starting with a compact model called XT4, followed by a larger SUV with three rows of seats due by 2019 to compete with vehicles such as Volvo's current XC90 model. Volvo, owned by China's Zhejiang Geely Holding Group, scored a public relations coup by announcing plans earlier this month to power all its vehicles with either hybrid or all-electric technology starting in 2019. The move challenges Tesla, which has eclipsed more established brands with tech savvy luxury buyers. Cadillac has plans "not dissimilar to what Volvo has announced," with more electrified vehicles launching in the second half of the next decade, de Nysschen said.

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

Cadillac Super Cruise, a hands-off review

Cadillac Super Cruise won't let you eat breakfast behind the wheel, climb in the back seat or any of the other stupid human tricks displayed on YouTube by Tesla owners. It even won't allow the car to change lanes on its own, like Tesla Autopilot. But it's a big step on the road to full autonomy, a huge convenience on long-distance road trips and a substantial technological triumph for Cadillac. In the simplest terms, Super Cruise is a lane-centering enhancement to adaptive cruise control (ACC). But Super Cruise is anything but simple. Its technical complexity — hence its long delay after first being unveiled five years ago — belies its straightforward operation and intuitive user interface, which I discovered on an almost 750-mile, 11-hour drive in a 2018 Cadillac CT6 between Dallas and Santa Fe to test the system. LOADS OF LIMITATIONS First, let's dispense with the details and disclaimers. Super Cruise is standard on the 2018 CT6 Platinum and a $5,000 option on other trim levels. Because Super Cruise is supported by OnStar — an OnStar operator will call to find out if first responders need to be sent in a worst-case scenario — a three-year OnStar Super Cruise Package is included with the system. Super Cruise has loads of limitations that are probably more concerning to GM's legal counsel than they were to me during my long drive. Some are no-brainers, such as not for use in construction zones or for driving on the shoulder. But the system can also be stymied by adverse weather, poor visibility and faded lane markings. Super Cruise only works on freeways with on and off ramps and a center divider. ACC and forward collision warning also need to be engaged, and the system's cameras and radar sensors can't be obstructed. To keep drivers from looking away from the road for too long — and to keep the system active — an infrared camera on top of the steering column keeps an electronic eye on the driver's seat. GM has over 100 patents alone on this Driver Attention System, including an algorithm that triangulates the nose, eyes and ears in case the camera can't see through sunglasses to make sure you're not nodding off. In addition to the car's visible sensors, another major component of the system is something you don't see: mapping software. But not the kludgy kind that powers in-dash navigation systems.