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Weekly Recap: Automakers rethink the definition of luxury

Variety is the spice of life, but it's becoming a prerequisite for luxury carmakers in the ultra-competitive US market. The Detroit Auto Show was strong evidence of this reality. It's not enough to offer attractive and well-appointed cars and SUVs anymore. Luxury brands that want to be competitive need to invest in everything from high-powered supercars to clever hybrids. To be relevant, you need to be green and mean – and everything in between. As General Motors product chief Mark Reuss said after the reveal of the 640-horsepower Cadillac CTS-V: "We are not leaving anything on the table." He was speaking for Cadillac, but he might as well have been speaking for the luxury car market. The CTS-V debuted in Detroit about an hour after Lexus surprised showgoers with the reveal of the RC F GT3 race car and then announced ambitious plans to return to competitive racing. That almost overshadowed the fact Lexus had just revealed another potent addition to its growing F line, the 467-hp GS F. View 20 Photos But for luxury brands, it's not just about maximum horsepower for well-heeled enthusiasts or decadent amenities for the Grey Poupon set. Strong competition from all corners has forced automakers to refine and expand their lineups in ways unforeseen even a few years ago. Case in point: Mercedes-Benz finally has an answer to the BMW X6, rolling out the GLE coupe in Detroit. The X6, which blends coupe-like styling cues with some of the functionality of an SUV, debuted in 2008. Back then it was a punchline, but seven years and more than 260,000 sales later, the X6's success has compelled Benz to respond. Mercedes – one of the strongest proponents of diesel technology – also debuted the C350 plug-in hybrid sedan, which promises a range of 20 miles on electricity, though fuel economy figures were not announced. The car pairs Mercedes' well-received 208-hp turbocharged four-cylinder with an electric motor for total output of 275 hp and 443 pound-feet of torque. Meanwhile, Infiniti will add the Q30 hatchback to its lineup by the end of the year, new president Roland Kruger reiterated in Detroit. It's expected to be joined by a crossover variant, and the additions will help strengthen Infiniti in the United States and abroad. "While we're expanding our product line, we're also expanding our market reach," he said. That's something echoed by Jaguar executives, who are preparing to launch the brand's first crossover, the F-Pace, in 2016.

Comparing Cadillac's crazy classy coupes

I just returned from the press launch of Cadillac's new ATS-V, a high-performance version of the US luxury marque's entry-level compact car. While ordinary ATVs offer a choice of a 202-horspower, 4-cylinder, a 272-hp turbocharged four or a 321-hp V-6, this one packs a twin-turbo V-6 that pumps out 464 thoroughbred horses and 445 pound-feet of hard-charging torque. Starting at $62,000 for the sedan and $64,000 for the sexy coupe, ATS-Vs are available with a 6-speed manual (with Active Rev Matching and no-lift shift capability) or an 8-speed automatic with steering-wheel shift paddles. They comes with GM's latest 4-mode Magnetic Ride Control, 5-mode Performance Traction Management (with launch control), competition-spec traction and stability controls, an electronic limited-slip differential, specially-tuned electric power steering, huge Brembo brakes, and added air cooling for their engine, transmission, and rear axle lubricants. They roll on 18-inch Michelin Pilot Super Sport tri-compound summer tires on 9-inch-wide front alloy wheels and 9.5-inch-wide rears. And they will rocket from rest to 60 miles per hour in less than four seconds while delivering 16 city EPA miles per gallon and 24 highway with the automatic and 17/23 with the manual transmission. The obvious purpose of all this technology is to effectively endow Cadillac's latest V-Series models with a rarely achieved true dual personality: go, stop, and corner like race cars on a track, then sooth, coddle, and entertain like luxury cars on the way to and from the track, or work. We had ample opportunity to verify both personalities with multiple hot laps of the Circuit of the Americas (COTA) Grand Prix course, followed by a more leisurely drive on public roads near Austin, TX. Even lacking wheel-to-wheel comparisons, we believe these hot new ATS-Vs are fully competitive with their pricier German competitors, and probably superior in some ways. So now, Cadillac will offer not one but two very sharp-looking, upscale, small-volume, 2016 compact coupes, almost the same size and at similar prices, but with totally different missions: this new high-performance ATS-V and the soon-to-be-upgraded ELR extended-range EV. The key question: why? Aside from its cramped back seat and ridiculous $76,000 starting price, I loved the ELR when it was introduced for 2014.

Why Cadillac needs a real truck in its lineup

Premium brands such as BMW, Mercedes-Benz, Lexus, and Cadillac sell vehicles that cover the spectrum from car to crossover to SUV. But trucks? They remain the last frontier when it comes to luxury brands. These days Chevy, GMC, Ford, and Ram sell cheap, bare-bones work trucks alongside loaded models that top $75,000. There is a reverse elitism that comes with this sales tactic. A brand gets to reflect a rugged working class lifestyle with the emblem up front, while what's behind it costs as much as a small house in middle America. But Americans who spend big money on cars and SUVs have always gradually tailed towards luxury nameplates over time. Everyone knows what an Escalade is, and thanks in large part to that image the Escalade is now the best-selling fullsize luxury SUV in the USA. Cadillac's flagship model, along with its midsize luxury crossover, the SRX, routinely outsell the competition from Audi, Mercedes, and BMW, not to mention Ford's Lincoln brand and most of the Japanese rivals. With trucks already dominating overall sales and headed into the pricing stratosphere, I believe it's time for Cadillac to consider a fullsize truck. And no, not a lipstick version that merely takes a Chevrolet Silverado pickup and throws in a few leather seats and some slight interior touches. That experiment already failed both for Cadillac (the Escalade EXT) and for Ford's Lincoln brand (Blackwood, Mark LT). Cadillac is an American brand that currently focuses a ridiculous amount of energy and resources trying to compete with European car offerings. The brand needs to create the Cadillac of trucks. Head honcho Johan de Nysschen has been blunt in his desire to "restore Cadillac to the pinnacle of global premium brands, not in sales but in aspirational brand character." This sounds well and wonderful. But the present problem in achieving this goal is that, on a global basis, Cadillac is a failed brand. Look at Europe, where Cadillac has sold so poorly in recent years that former Soviet manufacturer Lada managed more new registrations in 2014 by a factor of more than four to one. Cadillac is an American brand that currently focuses a ridiculous amount of energy and resources trying to compete with European car offerings. After more than 20 years of Cadillac models selling themselves as import killers, the only one with sustained success has been the CTS, and even that has been a marketplace loser for the last several years. The CTS-V?