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Cadillac to fight Audi A3, Mercedes CLA with small rear-drive sedan?

Compact luxury sedans are fast becoming the trend among upscale automakers. Mercedes has the new CLA (and its many platform-mates), BMW has the 1 Series and 2 Series, Audi has the A3 and, though Lexus apparently isn't interested in anything smaller than its CT 200h, Infiniti is getting in on the action with a compact model of its own. It would only follow logically, then, that Cadillac should launch a competitor, and according to the latest reports, that's just what it has in store.
Speaking with Car and Driver, Cadillac marketing chief Uwe Ellinghaus confirmed that such a project is in the works. But unlike its rivals, Cadillac aims to go with a rear-wheel-drive layout. This despite research that apparently indicates that a surprising 80 percent of owners think that their BMW 1 Series is front-drive. It's the driving dynamics and styling proportions that motivate Ellinghaus and his colleagues to stick with rear-drive, however.
The new model would in all likelihood be based on the same GM Alpha architecture that underpins the ATS and CTS - a platform that has helped Cadillac keep the weight down on both models and which is expected to underpin the next-generation Chevy Camaro, as well. The sub-ATS could be positioned as a four-door 2+2, however, as the ATS grows a little larger in its next iteration in order to make room for its new baby brother.

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Twin-turbo Cadillac CTS coming

Cadillac XTS to become Opel flagship sedan?

According to Auto-News.de, Opel is considering using Cadillac's all-new big sedan, the XTS, as the base for its new flagship car, which would likely carry the name Omega.
WorldCarFans.com speculates that Opel could use GM's 3.6-liter direct-injection V6 that generates 304 horsepower or, possibly, a 2.8-liter turbocharged six-cylinder engine that creates 321 horsepower to power the vehicle. The European automaker could even use a 195-horsepower turbocharged four-cylinder engine in this application - fine, since many of Europe's largest sedans are powered by smaller, more efficient engines.
Regardless of power, the Omega could arrive at dealerships by the end of 2013.