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GM invests $175 million to replace 3 Cadillac sedans with 2

We've already had confirmation that Cadillac is sunsetting the ATS compact sedan and strong hints that Caddy would discontinue the full-size XTS (pictured above) and midsize CTS, too. Now all three are confirmed, with GM saying it's investing $175 million to build two replacement sedans. GM has already begun installing new tooling at its Lansing Grand River assembly plant in Michigan. That will go toward building two new sedans, which reports suggest are likely to be called the Cadillac CT5 and CT4, or possibly the CT3. It's part of Cadillac's plan to introduce a new vehicle every six months by the end of 2021. A spokesman told the Associated Press that the new cars will debut within that time frame and that the changes won't affect staffing levels at the plant, which employs 2,000 people. Of the three, the XTS is expected to go away entirely, while the CT5 would replace the CTS, straddling the line between a compact and midsize four-door. The CT4 or CT3 would take the spot of the ATS and likely be smaller. That would leave the CT6 as the brand's largest sedan and leave Cadillac with three sedans starting with the 2019 model year. Meanwhile, Cadillac has only one model, its top-selling XT5, representing the all-important and red-hot luxury crossover segment. It's prepping a midsize XT4 crossover for sale later this year as a 2019 model. Cadillac's global sales rose 15.5 percent in 2017, thanks largely to growth in China, but sales in the U.S. fell 8 percent for the year to 156,440 vehicles. Sales of the ATS fell 39 percent, dropped 35 percent for the CTS and 27 for the XTS last year. Related Video:

If Cadillac’s smart, the CT5 will be a CTS without baggage

Cadillac is, mercifully, about to rationalize its lineup, something that's been a long time coming. The CTS is one of those cars that gets admiration from reviewers, like us, for a concerted effort from GM to engineer an underlying platform that matches the Germans in terms of raw dynamics. From buyers, it gets not even a shrug as they, oblivious to its existence, walk right into BMW and Mercedes dealerships. The reasons for this have a lot to do with the sheer brand recognition, and the image, of the German competitors. You can't really lay that all at GM's feet, but what you can do is critique the uninspired drivetrain selection. The 3.6-liter V6 is a crude implement, making its 335 horsepower roughly. The BMW's equivalent inline six makes its power smoothly, with modern forced induction. There's no directly comparable E-Class sedan until you get into the V-Sport versus E43 situation, but the turbo four is smooth. And the interior? No question. The Mercedes is jaw-slacking. The story for the CTS's turbo four is largely the same. Some blame also has to be leveled at the first- and second-generation CTS sedans, which adopted an odd strategy: sell a slightly larger sedan to folks looking at 3-Series, A4, and C-Class, but at about the same price. Folks weren't interested in a larger car for the same money. Despite the third-gen CTS's growth into the 5-Series size class, the CTS still seems like an odd in-betweener in the sport luxury segment – psychologically, if not physically. CTS sales are in the toilet in 2017, and GM is smart to shake things up. So with the announcement that Cadillac head honcho Johan de Nysschen has finally been allowed to kill off underperforming models, the CTS is toast. (As is the ATS, and much more importantly, the XTS – a shambling dinosaur of a sedan.) What's next is the CT5, and that's what we're interested in now. Cadillac has until 2019 to figure out what the CT5 actually is. That isn't a lot of time, so our money is on it being a repositioned, rationalized CTS. The platform's not bad; it's heavier than the larger CT6, but it's fairly modern. Sadly, it's unlikely that any of the standard powertrain options will get a revamp, but maybe some additional sound deadening or an active engine mount system to reduce NVH will quell the V6's bad habits. View 32 Photos More importantly, Cadillac will get a chance to work on the interior look, almost certainly aligning it more closely with the much improved CT6. That'll help a lot.

Cadillac HQ has a New York address

The new home of Cadillac will be in the 330 Hudson building in New York City's Hudson Square, putting the luxury marque smack dab in the middle of three of the city's hippest areas, SoHo, Greenwich Village and Tribeca.
The announcement is yet another milestone in the company's controversial decision to relocate administrative and marketing operations away from Detroit and into the Big Apple.
"The addition of a headquarters office in New York is a key step in Cadillac's ongoing global expansion," Cadillac boss Johan de Nysschen said, according to The Detroit Free Press. "There is no better atmosphere in which to better immerse ourselves into luxury consumer and brand expertise."