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The Cadillac sedan lineup is set to undergo significant reductions and simplifications, as announced by CEO Johan de Nysschen in a recent interview with Reuters. The automaker plans to align its offerings with the industry’s growing preference for crossovers, while also expanding its range of hybrid and electric vehicles within GM’s luxury brand.
According to de Nysschen, “We have to rebalance our sedan portfolio.”
Cadillac currently offers four sedan models: the compact ATS, the midsize CTS, the full-size CT6 (which is not officially labeled a flagship), and the front-wheel drive XTS. However, the two larger sedans do not align well with market segments, contributing to declining sales in the sedan category. In the first half of 2017, Cadillac’s global sales rose by 27 percent, but U.S. sedan sales dropped by 16.3 percent, highlighting that four sedan models are excessive in today’s luxury market.
To address this, Cadillac plans to phase out the CTS, ATS, and XTS by the end of the decade, transitioning to a new sedan named the CT5, similar to how the STS and DTS were replaced by the XTS in previous years.
Once the lineup is narrowed to the CT5 and CT6, Cadillac intends to introduce a third, smaller sedan aimed at competing with the Audi A3 and BMW 2-Series. According to a 2015 report from Automotive News, this new sedan will feature rear-wheel drive, generating anticipation for the compact model. Although the changes may seem complex, Cadillac’s ultimate goal is to establish a clear and cohesive sedan lineup categorized into small, medium, and large models under a unified naming convention.
Currently, Cadillac’s crossover offerings are notably limited, with only the XT5 model available. The XT5 alone outsells all Cadillac sedans combined. Production of a long-awaited compact crossover, the XT4, is expected to commence next year, with plans for a larger three-row crossover expected to launch in 2019, positioned between the XT5 and the Escalade.
Regarding electric vehicles, details remain sparse, likely representing more of a wishlist than a definitive strategy at this point. Cadillac appears to be smartly prioritizing the expansion of its crossover lineup in showrooms. The brand’s electric future will likely hinge on the performance of the plug-in hybrid CT6 and the broader market trends.
While changes to the sedan lineup are anticipated, Cadillac enthusiasts hope the brand will continue its V performance program..
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