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Cadillac could base its entry-level sedan on the Chevy Cruze [UPDATE]

UPDATE: Cadillac spokesperson Donny Nordlicht tells Autoblog , "The post speculating on a future Cadillac model derived from the Chevrolet Cruze is completely false." Premium automakers Mercedes-Benz and Audi have seen plenty of success with new small front-drive-based sedans. The CLA-Class had its best January ever this year, while Audi moved more of its new A3 in 2015 than its predecessor sold in 2005 through 2010 combined. The fact that Cadillac wants a piece of that pie is no surprise, then. There's a new rumor that GM's luxury brand could launch its own compact – possibly called CT2 – to battle the Germans. Cadillac, a brand that's pushed hard to rebuild its rear-drive reputation, could develop a new entry-level model based on the front-wheel-drive 2016 Chevrolet Cruze's D2XX platform. Go ahead and make your Cimarron jokes. Sources are telling GM Inside News that a Cadillac built on the Delta platform would ditch the Cruze's turbocharged 1.4-liter four-cylinder for a 1.5-liter turbo in base models. General Motors' well received 2.0-liter turbo four would serve in higher-end models. According to GMIN, the Delta-based Cadillac would likely command a $6,000 to $9,000 premium over the Cruze, so figure $23,000 to $26,000 on the low end to $30,000 to $33,000 for something at the top of the range. As much as we dislike the kind of badge engineering that brought us the Cavalier-based Cadillac Cimarron in the '80s, the company has done an admirable job of distinguishing vehicles on shared platforms lately. A Delta-platform Cadillac would at least have a good basis – the new Cruze is surprisingly comfy. That said, we question GM's rationale if this rumor is indeed true. Put simply, Cadillac needs another sedan like I need another student loan payment. The company has four sedans, three of which overlap two segments, and none of which are selling very well. That's not because they're bad, but because customers want crossovers, of which Caddy has but one – the new XT5. Spending the time and money to add a fifth sedan to the mix when the company desperately needs to flesh out its CUV range would be a tremendous mistake. As much as we hate to say it, if Cadillac really wants to add a small, entry-level car to its range, it'd better be a crossover. Related Video:

2014 Cadillac CTS starts $7k higher than last model at $46,025*

The redesigned 2014 Cadillac CTS will be more powerful, stylish and luxurious than its predecessor, but it will also be much more expensive. With a new starting price of $46,025 (*including $925 for destination), the 2014 CTS represents a price increase of more than $7,000 compared to the 2013 model, but it should be more appropriately sized and equipped to take on rivals like the BMW 5 Series and Mercedes-Benz E-Class, which start at $47,800 and $51,900, respectively.
Available trim levels - referred to as Collections - include Luxury, Performance and Premium, offering either a 2.0-liter turbocharged inline four-cylinder or a 3.6-liter V6 and the choice of either rear- or all-wheel-drive configurations. For more performance, the all-new CTS Vsport model will have an asking price of $59,995. This 420-horsepower model is more powerful than both the BMW 550i and Mercedes E550 and about $2,000 less expensive than both.
There's still no word on what Cadillac has in store for a next-gen CTS-V sedan, but we're guessing power and price will both rise considerably. Scroll down for more info on the 2014 CTS that is set to go on sale this fall.

Infiniti Q50 Red Sport 400 priced at $48,855, AWD at $50,855

Infiniti's most powerful production model, the new Q50 Red Sport 400, now has a starting price. You'll need at least $48,855 for the rear-drive model or $50,855 for all-wheel drive. (Both figures include the $905 destination charge.) A fully loaded, rear-drive Q50 RS400 with Direct Adaptive Steering, navigation, adaptive cruise control, a heated steering wheel, and Infiniti's entire alphabet soup of safety equipment, tops out at $57,045. (Again, add $2,000 for AWD). When it comes to rear-drive competition, the closest base price to the Q50 is the 320-hp BMW 340i. This German undercuts the Infiniti by two grand, $46,795 to $48,855. But the BMW outprices the Q50 as soon as you start selecting options. A 340i with similar equipment to a loaded Q50 Red Sport 400 costs just under $60,000. All-wheel-drive German competitors also lose out in the price war. Like with the rear-drive models, the BMW 340i xDrive undercuts the Q50 RS400 by around $2,000. Add the options, and the Infiniti becomes a better value. The other two big German rivals, the Audi S4 and Mercedes-Benz C450 AMG start at a higher price and only get more expensive. Technically the S4 starts cheaper than the Q50, but only with the standard manual transmission. Selecting the S-Tronic dual-clutch model kicks the price from $50,125 to $51,125, and going for the top-end Prestige trim will bump potential Audi owners up to $57,025. Throw on must-have S4 options, including adaptive cruise control, adaptive dampers, and a sport differential and you'll be shell out $64,425 for the Audi. The Mercedes-Benz C450 AMG is the priciest choice in this group, starting at $51,725, or roughly $900 more than a base Q50 RS400 with AWD. Options, again, are the downfall here. Building a C450 to match a loaded Infiniti will drive the Mercedes' price up to $64,315. While it occupies something of a weird space relative to these vehicles, it's also worth mentioning the Cadillac CTS VSport. It's the only car in this impromptu pricing comparo that can outgun the Q50, with its 3.6-liter, twin-turbo V6 good for 420 hp and 430 lb-ft of torque. It also starts at $60,950, although that includes plenty of standard equipment. All this means that the Q50 Red Sport 400 represents a relative value. It packs more power than the Germans – 80 more than the 340i, 67 more than the S4, and 38 more than the C450 – and a more comprehensive list of options, too.