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Cadillac XT5 platform to underpin three-row crossover

Cadillac just launched the XT5 crossover to replace the SRX. But that's only the start. Speaking with Automotive News, Caddy president Johan de Nysschen confirmed that a new three-row crossover is also on the way. The seven-seater is based on a stretched version of the flexible platform underpinning the XT5, which we just drove recently. Taking that approach will give the luxury brand a larger crossover to pit against the likes of the Infiniti QX60, Audi Q7, and Volvo XC90 without having to develop one from scratch. It will also give buyers a more car-like alternative to the larger, truck-based Escalade. "It's one of the benefits of having this very flexible architecture. We can expand it, make it longer and wider. That gives us the ability to develop the car very quickly, as opposed to starting from scratch," de Nysschen told AN. "It's not running yet. It is a program request that we initiated with the engineers only last year. They are working at remarkable, record-breaking speed to get us the car." The new model would likely be called the XT7 and offer similar levels of equipment to the existing, smaller XT5. The existing mid-size model packs a 3.6-liter V6 mated to an eight-speed automatic transmission and comes in four trim levels. Related Video:

Cadillac considering more electric cars, Elmiraj business case gaining popularity

Cadillac's electrification isn't likely to stop at the $76,000 ELR coupe, according a report from TheDetroitBureau.com. Speaking to Cadillac's global sales boss, Bob Ferguson, a successful ELR will likely lead to a larger, even more upscale offering than the Volt-based two-door. "I could certainly see a larger vehicle, something even more luxurious," Ferguson said of a potential second, battery-powered Caddy.
That car would likely boast a more potent version of the Voltec powertrain that motivates the Volt and ELR. This next-generation system is still sometime off, though, and won't likely arrive until the second-generation Volt hits the market.
Besides hinting at future plug-in hybrids, Ferguson spoke to TDB about the improving business case for the Elmiraj Concept, shown at the Pebble Beach Concours in Monterey in August. "I'm very excited about the reception for the Elmiraj," Ferguson said. "I'd like to see it in showrooms as soon as possible," he added, before saying that a business case for the production version of the big coupe still needed to be presented to the brass. "It was made to be operationalized," Ferguson added, which is just what we want to hear when it comes to big, flashy concept cars.

Why Cadillac is willing to lose 43 percent of its dealers

Cadillac is offering about 400 dealers in the United States a lump sum of money to close down. That represents over 40 percent of Cadillac dealers in America. Offers start at $100,000 and top out at $180,000. The average offering is around $120,000. According to Automotive News, Cadillac chief Johan De Nysschen estimates it will cost the automaker around $50 million to close these dealers. Any dealer that chooses to remain open will have to submit to Cadillac's ambitious Project Pinnacle, which will divide dealers into incentive categories based on how many units they sell. "Every single Cadillac dealer will have the potential to earn significantly higher profits than they do today," says De Nysschen. Dealers have until November 21 to decide if they want to take the cash or submit to Project Pinnacle. A logical question: Why is Cadillac willing to spend $50 million to close down 43 percent of its dealers? First, GM's luxury brand has way more dealerships than it needs. Second, the 400 dealers with offers to shutter each sold 50 or fewer vehicles in 2015, representing just 9 percent of its sales volume in America. So, while closing these smaller dealerships may have a small initial impact on sales, it's not going to be a major hit to Cadillac. Related Video: News Source: Automotive News - sub. req.Image Credit: Gary Cameron / Reuters Cadillac Car Dealers Luxury Performance