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Cadillac XTS

Grand Cadillac to be Built in Detroit

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New model will sit at the top of Cadillac’s model range.

The worst kept secret in the automobile industry is this one: Cadillac plans to build a full-sized, rear-wheel drive sedan that will rival the BMW 7 Series, Mercedes-Benz S-Class, Lexus LS and the Audi A8. The top-of-the-range model has only been openly discussed for several years now with two recent concept vehicles, Ciel and Elmiraj, fanning the flames.

Built in Detroit

On Friday, Cadillac issued a press release announcing that its Detroit-Hamtramck assembly plant has been selected to build the unnamed flagship with production commencing in the fourth quarter of 2015.

Cadillac Ciel Concept.

Cadillac Ciel Concept.

An official preview of the new sedan is months away with GM saying that it would happen in the first half of 2015. Auto Trends has been told that the New York International Auto Show will showcase the new model, with a March 31, 2015, debut tentatively scheduled. The NY auto show will be open to the public from April 3 to 15, 2015.

Another possibility is a Jan. debut in Detroit, host of the North American International Auto Show. Personally, I’m leaning toward Detroit as it is the biggest stage for Cadillac’s most significant model ever.

The Detroit-Hamtramck facility is a logical choice as GM has invested more than $1 billon in the plant over the past five years. The plant currently builds several Cadillac models, including the ELR plug-in hybrid electric vehicle, the compact ATS coupe and sedan, and the midsize CTS sedan. Retooling for the new sedan is already done, reflecting an earlier $384 million investment commitment.

No Cadillac Models Replaced

GM also put to rest rumors that Cadillac’s XTS sedan would disappear once the new model arrives. Some analysts have looked at that sedan as a “place holder” until the grand sedan appears, but GM noted that the new model “adds to rather than replaces any model in the portfolio.” Likely, the slow-selling ELR will also hang around for at least another model year too.

Newly installed Cadillac President Johan de Nysschen, formerly with Audi and Infiniti, noted that the flagship model will extend GM’s luxury brand’s range. He also pointed out that the vehicle will lift Cadillac in other ways. “In addition to new technology in the car itself, we are instituting innovative manufacturing techniques to assemble it with the precision deserving of a luxury make,” stated de Nysschen.

Cadillac sales are down 4.7 percent year-to-date in a market that is experiencing double-digit increases. The brand should erase its shortfall by year end as new ATS coupe and Navigator models draw people to Cadillac showrooms.

Cadillac Elmiraj Concept.

Cadillac Elmiraj Concept.

Omega Platform

The flagship Cadillac will be built on GM’s all-new Omega platform, itself derived from the Alpha platform underpinning the ATS and CTS. Even so, the cost for launching the new platform cannot be paid by a vehicle selling for upwards of six figures, given that fewer than 10,000 units will be sold each year.

Auto Trends believes that there are two models that will ultimately be derived from Omega: Buick’s large coupe, what likely will sport the Riviera moniker, and the next generation Escalade SUV. The most recent generation Escalade was introduced for the 2015 model year, but its run is expected to be a short one. My guess is that the Riviera will debut by 2017 and the Omega-based Escalade by 2018.

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Cadillac LTS and Other Luxury Rumors

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A big sedan seems certain for Cadillac.

Cadillac Elmiraj
Add two more doors to the Elmiraj and you may get the Cadillac LTS.

The Cadillac brand’s US sales are down by nearly 1 percent through the first seven months of July 2014, in a market where some of its competitors are enjoying double-digit increases. While this trend is certainly not something GM is happy about, the long-term outlook for Cadillac seems bright.

In the interim, Cadillac has gained an all-new ATS Coupe, the next generation Escalade and a mild refreshing for the CTS sedan. Based on these changes its sales fortunes will most certainly reverse.

Flagship Cadillac LTS Sedan

What may be most significant for GM’s luxury brand are the persistent rumors about an all-new flagship sedan, one that could be based on the Cadillac Elmiraj concept coupe that headlined the 2013 Pebble Beach Concours d’Elegance. With the 2014 Pebble Beach show coming up this weekend, rumors are once again heating up.

Such rumors have the so-called Cadillac LTS debuting at the 2015 New York International Auto Show next April. The auto blogs point to an unnamed source high up in the GM management chain as confirming the findings (maybe the “source” is a clerk working at RenCen).

Before we look at the possibility of a Cadillac LTS we need to examine the market. That market is dominated by the Mercedes-Benz S-Class with the BMW 7 Series, Audi A8 and Lexus LS among its chief competitors. Mercedes prices its flagship from $92,000, much higher than the starting price for its competitors, which generally start in the $75,000 range.

See Also — Not Again! Cadillac’s Naming Convention Adds a New Designation

Prestige and Profits

Flagship models provide two attributes: prestige and profits. These are not simply “halo” models, but are the faces for their respective brands. A good “looker” at the top of the brand attracts customers who may aspire to someday own a top end model or at least enjoy the association. As for profits flagship luxury sedans provide profits that rival pickup trucks. That would give GM an edge that neither Ford nor Chrysler has.

The Cadillac LTS or similar model would be built on the upcoming Omega rear-wheel-drive platform, complementing the Alpha platform that underpins both the ATS and CTS. GM would spread the Omega’s cost across other brands with Buick (Riviera?) and Holden (Commodore?) also likely recipients. Badge engineering, thankfully, seems dead as News Hub observed.

Possible Technical Specifications

The LTS would most likely offer an all-wheel-drive option. The base engine could be the same twin-turbo 3.6-liter found in the Cadillac XTS. A new generation of V-8 engines seems possible as well. And with GM committing to supplying more diesels to the US market, that option also seems possible. An 8-speed automatic transmission would be standard across the model line.

As far as interior amenities go, all the goodies found in current Cadillac models would be included and then some. The latest iteration of magnetic ride control might be introduced and the LTS could be outfitted with more autonomous features than any Cadillac model to date. These “goodies” are not based on mere speculation, but are among the auto trends we’ve been seeing within Cadillac.

Placeholder Cadillac XTS

As far as the future of the XTS, its alleged role as a “placeholder” may not be true. There may still be room for this model in the Cadillac line up despite the XTS’ size rivaling the CTS. The XTS might offer an appealing “step” from a more moderately-priced CTS to a full-blown Cadillac LTS.

Another argument for preserving the XTS is that it shares its platform with the Chevrolet Impala and Buick LaCrosse, therefore its costs have been wrung out across three model lines. XTS sales are down in the US, but were up by 58 percent in China this July. An ATS-CTS-XTS-LTS line up could prove a powerful punch to once again elevate Cadillac to world-class status.

Related Reading — Thrice Teased: Cadillac Sixteen, Ciel and Elmiraj