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Cadillac to fight Audi A3, Mercedes CLA with small rear-drive sedan?

Compact luxury sedans are fast becoming the trend among upscale automakers. Mercedes has the new CLA (and its many platform-mates), BMW has the 1 Series and 2 Series, Audi has the A3 and, though Lexus apparently isn't interested in anything smaller than its CT 200h, Infiniti is getting in on the action with a compact model of its own. It would only follow logically, then, that Cadillac should launch a competitor, and according to the latest reports, that's just what it has in store.
Speaking with Car and Driver, Cadillac marketing chief Uwe Ellinghaus confirmed that such a project is in the works. But unlike its rivals, Cadillac aims to go with a rear-wheel-drive layout. This despite research that apparently indicates that a surprising 80 percent of owners think that their BMW 1 Series is front-drive. It's the driving dynamics and styling proportions that motivate Ellinghaus and his colleagues to stick with rear-drive, however.
The new model would in all likelihood be based on the same GM Alpha architecture that underpins the ATS and CTS - a platform that has helped Cadillac keep the weight down on both models and which is expected to underpin the next-generation Chevy Camaro, as well. The sub-ATS could be positioned as a four-door 2+2, however, as the ATS grows a little larger in its next iteration in order to make room for its new baby brother.

Will attaching the electrodes re-animate Cadillac?

This announcement last week from General Motors —"Cadillac will be GM's lead electric vehicle brand"— followed quickly by the surprise reveal Sunday night of a Cadillac EV crossover, leads one to wonder whether this is a case of GM pulling out the defibrillator and hoping a full-on jolt of electricity will revive Cadillac from its ongoing diminution in the market. In 2018, Cadillac U.S. sales were 154,702 vehicles, which was down from the 156,440 it had sold in 2017. And the 2017 sales were down significantly from the 170,006 vehicles delivered by Cadillac in 2016. And that is down from the 175,267 sales of 2015. Sure, part of Cadillac's problem — one shared by some other OEMs — is that its sedans aren't selling. But if we put those to the side, realize that in 2018 sales of the venerable Escalade were down by 2.2 percent. Admittedly, that rig is a little old in the grille, and it's suddenly gotten strong competition from the Lincoln Navigator, so a sales decline isn't too surprising. But the XT5, the compact lux vehicle that was launched in 2016 as a model-year 2017 product, had an 11.3 percent decline in a segment that is doing nothing but growing. This is not promising. Although the argument at GM HQ might be that Cadillac can reinvent itself as a Tesla fighter, one of the things that isn't often noted about Tesla vis-a-vis other OEMs is that while sedan sales are generally down, Tesla, which had an estimated 2018 sales volume of 197,680 (according to Cleantechnica.com), made its numbers primarily with the Model 3 and Model S, both sedans, as it has just the Model X crossover. So it isn't just about vehicle architecture. It is going to take more than an electric SUV to change Cadillac's performance. But here's where circumstances can fall in Cadillac's favor. Scale can be highly beneficial to Cadillac versus Tesla. The Chinese market, even though it is weakening of late, will be largely predicated on "New Energy Vehicles," which means electrified and fully electric. And while Tesla only just now broke ground on a factory in China, LMC Automotive reports that as of December 2018, SAIC GM is already well-established there and is the third-largest vehicle manufacturer in China (behind SAIC Volkswagen and FAW Volkswagen). Cadillac is going to be able to take advantage of GM's global efforts in developing EVs, so soon the Cadillac showroom could be filled with an array of luxury EVs that may make even Tesla loyalists take another look.

2020 Cadillac XT5 leaks onto web, adopts elements from smaller XT4

Cadillac just showed the new XT6 at the 2019 Detroit Auto Show, but today's news covers its smaller brother the XT5. A couple of leaked images on GM Authority along with information about the cars squirmed its way onto the web for the 2020 mid-cycle refresh, and we have the details for you. In looking at the shots here, not much has changed. The mesh grille is the most obvious update, adopting the same look as the compact XT4 crossover. Its lower grille has ever-so-slightly grown in size, and the headlights and taillights get new internal LED designs. Yawn. Better news comes out of the powertrain side. Information from the leak suggests GM's updated 2.0-liter turbo four-cylinder will be tapped for duty. As of now, the 2.0-liter offered in international markets has not been an option in the U.S. That could very well change this time around, since it's already being used in one Cadillac — see our first drive of the XT4 with this engine for the full breakdown on its improved refinement and efficiency. The 3.6-liter V6 will undoubtedly carry over, but it'll be getting the GM nine-speed automatic also paired to the new four-cylinder. This should be a marked improvement over the Aisin-based eight-speed torque converter it makes do with now. We weren't exactly blown away by the Cadillac XT6's interior, but expect styling elements from the slightly newer Caddy SUV to make its way to the XT5, too. A reveal for this updated crossover should be on its way soon, as GM will most likely be selling the updated 2020 XT5 before the year is done. We asked GM if it could confirm or deny any of the information in this report, and will update when we hear back. Related video: