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Cadillac to add small sedan, crossover as part of major product blitz

Cadillac will add a small sedan and a compact crossover to its lineup in the next several years as part of an ambitious product blitz that will remake its lineup. The sedan will slot below the ATS, which is currently Cadillac's smallest four-door car. It's scheduled to arrive in 2017, Cadillac president Johan de Nysschen told Autoblog at the Detroit Auto Show. The sedan will be followed late that year or in early 2018 by a compact crossover, which will be positioned below the SRX. The crucial redesign of the SRX – Cadillac's top seller – arrives in 2016. It will switch to the brand's new naming system and change to an "XT" prefix followed by a number. The naming scheme debuts on the CT6, which launches in late 2015 and will be positioned above the CTS and XTS sedans. Cadillac also wants to add another crossover that sits between the SRX and its flagship SUV, the Escalade, at some point. Further out, Cadillac's long-awaited Mercedes-Benz S-Class fighter could arrive around 2020, and it would serve as the flagship or "showcase of the brand," de Nysschen said. Cadillac is also looking to expand its powertrain portfolio and is contemplating a wide range of options, including hybrids, plug-in electric vehicles and diesel engines. The new cars and crossovers are part of a $12-billion investment in Cadillac, which de Nysschen described as "an unheard level of capital" from General Motors. In total, the brand will receive eight new products through 2020. "Our product offensive will provide the substance for our ambitions," he said. De Nysschen has set high goals – and made major changes – at Cadillac since he took over the 113-year-old luxury brand in September. The brand moves to a separate headquarters in New York this year, away from GM's base in Detroit, and it has switched advertising agencies in a bid to elevate its image. Cadillac's sales declined 6.5 percent in the United States in 2014 to 170,750 units, and it has the smallest volume of GM's four brands. "Here in the US we continue to make progress, but we also face challenges," de Nysschen said. He added the brand's lineup "clearly limits our growth opportunities in the US market." Still, de Nysschen is taking the long view for Cadillac, noting it took years to turn around Audi, where he was president of its US operations for eight years. Cadillac's global sales have inched up five percent globally this year, spurred by a 47-percent surge in China.

Luxury car brands scrambling to avoid a blue Christmas

DETROIT — When financial markets surge to new records, sales of luxury cars usually rise, too. Instead, October U.S. auto sales reports on Wednesday showed that a collapse in sales of luxury sedans is accelerating. Consumers have gradually shifted over to luxury sport utility vehicles from sedans in the past decade, but the trend — which has occurred in both the non-luxury and luxury sedan segments of the auto market — was particularly pronounced in October. Sales of Daimler AG's Mercedes-Benz S-Class, long a global benchmark for large, premium sedans, plunged 49 percent in October, and are down 24.8 percent for the year to date. General Motors' Cadillac brand said it sold just 779 of its CTS sedans in October. Demand for that car, designed to compete with German luxury sedans, is down nearly 33 percent for the year. "There's still a significant portion of the market that wants a car, but I'm sure there were people who preferred a horse to a car at one point." Cadillac's best-selling model this year is the XT5 compact SUV, which has more than doubled sales from a year ago. The shift within the luxury vehicle market away from sedans toward SUVs of all sizes is forcing some of the most prestigious brands to scramble to add SUV models to their lineups or boost SUV production to meet demand. "In the short term, there will be pressure to add (consumer) incentives, cut production or both," said Cox Automotive analyst Michelle Krebs. "And we just don't see an end in sight to this trend." The Dow Jones Industrial Average has been trading at all-time highs, usually a good sign for luxury sedans, but as major automakers reported new U.S. vehicle sales for October on Wednesday, sales for passenger cars continued their slide while luxury SUV and crossover sales rose again. According to Kelley Blue Book data, in 2007 luxury sedans made up 7.6 percent of U.S. new vehicle sales, while luxury SUVs made up 4.2 percent. Through September this year, luxury SUVs made up just over 7 percent of the market, compared with 4.9 percent for luxury sedans. In the short term, luxury brands could use holiday season sales promotions to clear slow-selling sedans off dealer lots, analysts said. Toyota's Lexus brand said on Wednesday it will launch its "December to Remember" year-end sales promotion for the 18th straight year.

Cadillac explains origins of Lyriq EV name

We feel for Cadillac, a brand we're inclined to dub the Alex Rodriguez of the automotive world — so much obvious talent, its gifts warped by repeated questionable moves and an inability to conclusively close the deal on The Big Stage. And as with Rodriguez, the expectations are so high at the same time the disappointment is so entrenched that Cadillac gets no benefits of any doubts, the commentariat ruthless with criticism for anything less than an out-of-the-park home run. This latest news, like the Newton-meter torque-based naming scheme initiated earlier this year, likely won't help. GM Authority asked Cadillac about the origin of the Lyriq name for the coming battery-electric crossover. Global head of brand strategy Phil Dauchy explained three threads that went into the new moniker. In no particular order, one thread is that "Cadillac," according to Dauchy, gets more mentions in song lyrics than any other brand, including non-automotive brands. The Music Lyrics Database, while not exhaustive, supports the case: Cadillac has 31 pages of lyric mentions among bands from Rancid to Weird Al Yankovic, beating every other brand we could think of. So ... lyrics into Lyriq. The second thread is rolled up with Cadillac's move to proper names instead of alphanumerics for the sedan and crossover lines, all of those names to end in "iq," as well as the push into electric vehicles. Dauchy told GMA the nomenclature overhaul and the two-letter suffix "[signal] that Cadillac is bringing a different type of vehicle to market, one that works in concert with man, nature, and machine." He's bullish on swaying the public with the product, adding, "When you see [the Cadillac Celestiq], its size, presence and scale all connote the emotion associated with the name." The final thread that went into the Lyriq name the alliteration of brand and model names. As GMA phrased it, perhaps unsettlingly, "With Cadillac and the model name both ending in an 'ick' sound, these names roll off the tongue quite well." This brings up a question raised in a number of comments about the Lyriq, which asks whether the last syllable is pronounced "ick" or "eek." Until now, I've pronounced the coming crossover with an "eek" at the end. "Lyr-eek" strikes me as more luxurious, and "Celest-eek" sounds better to me than "Celest-ick," that latter model being the flagship EV that follows the Lyriq. Of course, it also makes me wonder if I've been pronouncing "Cadillac" correctly.