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Cadillac drops the base engine in the 2017 ATS

Cadillac, in an effort to boost sales of the slow moving ATS, is making some changes to the 2017 model. Most notably, the luxury manufacturer is dropping the base 2.5-liter normally-aspirated four-cylinder engine from the lineup, leaving the 272 hp 2.0-liter turbocharged four as the base engine. The base 2.0-liter ATS will start at $35,590, $1,380 more than the 2016 model, though that's partially offset by more standard equipment. The base model now comes standard with Cadillac's controversial CUE infotainment system with an 8-inch touchscreen display, a Bose surround-sound speaker system, and a backup camera. Despite the bump in price for the base model, all other ATS trim levels will see prices reduced between $650 and $1,100, depending on the model. The ATS was designed to be Cadillac's answer to the BMW 3-Series and Mercedes-Benz C-Class. Though the ATS was originally released at a time where the Germans were slightly off their game, it's never quite matched up in terms of performance or customer perception posting disappointing sales figures compared to the competition. Cadillac has had problems getting customers into cars, and few ATS customers are converts from luxury competition. In order to offload inventory and lure in new customers, the company has previously been forced to offer big lease deals. Many of these customers have come over from more mainstream brands like Chevrolet and Ford. ATS sales have fallen 23 percent through May versus 2015. The car's market share has fallen every year since 2013, currently occupying just 4.5 percent of the compact luxury market. Unless Cadillac can offer some truly amazing deals, we don't expect many shoppers to buy American over the strong German competition. Related video: Cadillac Luxury Sedan

Why Cadillac thinks it needs to succeed in Europe to sell cars elsewhere

Ward's Auto has taken an interesting look at the renewed focus General Motors is showing towards Cadillac in Europe. Susan Docherty, president and managing director of Chevrolet and Cadillac in Europe (pictured), says in order for the luxury brand to thrive in China, it first needs to succeed in the old country. The reason? Chinese buyers look to Europe for cues as to what's deemed worthy of the term "luxury." There are hurdles to the plan, however. In addition to the fact that the EU is flooded with high-end nameplates, GM doesn't necessarily have the distribution network in place to put buyers behind the wheel.
Combine that with persistent economic woes and Cadillac's checkered past marred by a lack of diesel engine options and a bankrupt distributor, and the road ahead for the brand looks like less of an uphill climb and more like a straight-up cliff face. But Docherty is optimistic and says she has a plan for the brand. We recommend heading over to Ward's for a closer look at the full read.

Cadillac XT4 crossover reveals its lighting

The upcoming Cadillac XT4 compact crossover has once again been spotted, this time with less camouflage and an update to its lighting. Specifically, the little crossover is sporting production lighting front and rear, and it's sure to make the luxury SUV one of the boldest-looking Cadillacs. Part of the reason for this comes from the taillights. As we suspected from the last set of spy shots, the XT4 will have highly distinctive lights that run the full height of the C-pillar. Though it's a similar design to that of the Escalade, it's made more interesting by the significant forward rake of the rear pillar. Not only that, but that pillar is quite thick, too. The look is actually reminiscent of the old CTS wagon. Moving around the side, the reduced camouflage reveals that the doors and quarter panels are fairly conservative and lacking in many creases or bulges. We can make out the edges of what will likely be black plastic fender flares and rocker panel cladding. Finally reaching the front, we see that the headlights are similar to those of many current Cadillacs, including the recently refreshed XTS sedan. The main part of the lamp starts high up and is slightly horizontal like the Escala concept, but they extend over the fenders and a strip of LEDs descends down the front. A previous report noted the XT4 will be built in Kansas on the Chevy Malibu platform. That means it will be a front-drive-based vehicle likely offering both front- and all-wheel-drive. Under the hood will probably be at least one turbocharged four-cylinder engine, with a second, more powerful upgrade option a possibility. We expect to see the fully revealed model to show up by the end of 2018. Related Video: Featured Gallery Cadillac XT4 spy shots View 15 Photos Image Credit: Brian Williams Spy Photos Cadillac Crossover SUV Luxury cadillac xt4 cadillac xt3