CARS & CONCEPTS

A Cadillac flagship is in the mix as GM maps out brand's strategy

GM is launching the XTS this month, but the large sedan is priced far lower than German rivals’ flagships.
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DETROIT -- Cadillac is considering a large, flagship sedan to take on the Mercedes S class and BMW 7 series, a top General Motors official says.

Mark Reuss, GM's president for North America, told Automotive News last month that a new flagship is on the table as GM maps its go-global strategy for Cadillac.

A flagship would be a continuation of how GM has been positioning Cadillac's lineup to go head-to-head in each segment with BMW, Mercedes and Audi. This summer, for example, Cadillac is launching the ATS compact sedan, GM's answer to the BMW 3 series.

Next year, Cadillac is expected to roll out a redesigned CTS sedan that is longer than the current generation. That would make it an apples-to-apples choice when compared with another car in the mid-sized luxury segment, such as the Mercedes E class.

"I'm a fan of going right at those segments and beating them in segment," Reuss says.

He says he would "love Cadillac to have a flagship." While GM is launching the XTS large sedan this month, it's priced far lower than the 7 series, C class or Audi A8.

But a Cadillac flagship becomes a reality only if GM executives conclude that it is the best use of the automaker's finite resources, Reuss says.

"The way we're funding Cadillac has been from, sort of, everything else in GM," Reuss acknowledges. That leaves the brand with "very reduced scale in terms of individual architectures, engines, technology."

"We have to make very careful decisions," he says.

Some of those already have been made, including the redesigned CTS and Escalade SUV, both expected late next year. The ELR plug-in hybrid coupe also is due next year.

You can reach Mike Colias at mcolias@crain.com.


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