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Cadillac can't keep up with Escalade demand, can't move its sedans

No matter how much Cadillac revitalizes its lineup and its image, it seems that all consumers want is the Escalade. In fact, Automotive News reports that General Motors can't keep up with demand for the fullsize luxury SUV, despite sticker prices that start at over $70,000 and approach six figures at the top end of the spectrum. Contrast that with sedans like the ATS and CTS, which are far cheaper but which Cadillac hasn't been able to move fast enough to keep up with production, prompting both the manufacturer and dealers to offer substantial incentives to keep them from piling up. Cadillac had been resisting a price cut of the ATS or CTS, lest it hurt resale values – itself a factor that could explain consumers' reluctance to buy them in the first place – but been offering subsidized leases, discounted financing, rebates and cheaper options. Combined with incentives from individual dealers, according to AN, buyers can be looking at five-figure discounts on buying a new Cadillac sedan. And now, finally, it seems the CTS will indeed get a little bit off its bottom line. Yet GM has been producing the ATS and CTS at rates that their sales can't keep up with. The automaker was forced to idle the plant in Lansing, MI, where it assembles the ATS and CTS for six weeks starting this past December. And since it reopened late in January, it's been reduced to a single shift as dealers try to move the metal they've already got. Meanwhile the plant in Arlington, TX, that produces the Escalade and its Chevy and GMC siblings has been running on overtime, with three shifts throughout the week and even into the weekend to keep up with demand. Profitable as it's been for Cadillac and GM, though, the Escalade does not represent the future of where it wants to take the brand - separating the Escalade as almost a brand unto itself that's been left out of the company's new naming scheme. If only it could make its sedans as successful as its fullsize SUVs, it'll be all set.

Cadillac, Buick and Chevy decisions impacted by worries abroad

European Concerns Drive GM, But Beware Of The French Connection
GM's bid to rationalize Europe will impact the products that will be offered domestically.
It seems that Europe is defining the future of General Motors more so than its home North American market. Having axed Saturn, Pontiac and Hummer, GM has done a fairly good job of repositioning its remaining four divisions, Cadillac, Chevrolet, Buick and GMC. Cadillac carries the luxury banner. Chevrolet is aimed at the masses with cars and trucks along with a nod to performance thanks to Camaro and Corvette. Buick bridges the premium gap between Chevy and Cadillac, while GMC offers a hardcore work/upscale proposition.

Cadillac CT6 hybrid likely to appear in Shanghai

Cadillac is poised to reveal a hybrid version of the CT6 sedan later this month at the Shanghai Motor Show. Rumors have swirled of the sedan's pending reveal, and General Motors product chief Mark Reuss reportedly confirmed its existence last fall during an investor conference. On Wednesday, Reuss again said that GM is working on the hybrid CT6, and when asked by Autoblog, he hinted at the pending debut. "We've really got to wait until we finish rounding out the portfolio," he said. "The Shanghai show is where you should look for all of it. So stay tuned." A Cadillac spokesman declined to comment, but confirmed "we will add variants." The brand has already announced two V6 engines and is looking to expand the line. Reuss also said GM has considered a V-Series model for the CT6, but it's focusing on launching the four-cylinder and V6-powered sedans first and promoting V-Series versions of the CTS and ATS that arrive this year. "The [CT6] architecture is certainly capable of doing it," he said. "The question is who's going to buy the CT6? What kind of person? And do we need a V-Series off of that is the question we haven't answered yet. It's certainly capable of doing it ... we've certainly thought about it." Details of the hybrid powertrain aren't known, but it could use plug-in technology. Chevrolet announced the 2016 Malibu will get a hybrid model that employs electric powertrain features from the new generation of the Volt. For the CT6, electric-vehicle technologies would likely be used to extend range and aid the performance of the conventional engine. Related Video: