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GM Cadillac chief: New CT5 will replace 3 sedans; EVs coming

DETROIT - The head of General Motors' Cadillac luxury division said on Thursday the brand will shrink its lineup of sedans and expand its offerings of sport utility vehicles and hybrid and electric vehicles in response to market shifts. Expanding Cadillac's global sales is central to GM's overall profit strategy, and Cadillac has reported a 27 percent increase in worldwide sales through the first half of the year. However, in the United States, now the brand's second largest market behind China, Cadillac sales are down 1.6 percent and combined sales of the brand's four sedan models have plummeted 16.3 percent through the first half of the year. That has forced GM to order layoffs at two Michigan factories that build Cadillac cars, and raised questions about the long term future of the plants. "We have to rebalance our sedan portfolio," Johan de Nysschen told Reuters in interview, offering new details about the strategy. Cadillac will not directly replace the current XTS, CTS or ATS sedans when they end their life cycles in 2019, he said. Instead, Cadillac will use a single new car called the CT5 to appeal to consumers shopping for sedans priced between $35,000 and $45,000. New versions of the CT6 sedan will be offered to customers who want a larger car starting at $50,000. Sources had told Reuters last week that GM was considering ending production on six cars including the CT6 and XTS and models from Chevrolet and Buick. That report now appears only half-right as far as Cadillac is concerned. The new CT5 will be built at a factory near Lansing, Michigan, that currently builds the slow-selling Cadillac ATS and CTS models. A small luxury sedan to compete with the Audi A3 will be built in the same plant, de Nysschen said. Cadillac will offer more SUVs, starting with a compact model called XT4, followed by a larger SUV with three rows of seats due by 2019 to compete with vehicles such as Volvo's current XC90 model. Volvo, owned by China's Zhejiang Geely Holding Group, scored a public relations coup by announcing plans earlier this month to power all its vehicles with either hybrid or all-electric technology starting in 2019. The move challenges Tesla, which has eclipsed more established brands with tech savvy luxury buyers. Cadillac has plans "not dissimilar to what Volvo has announced," with more electrified vehicles launching in the second half of the next decade, de Nysschen said.

GM To Offer Car That Will Almost Drive Itself

Cars that can talk to each other and almost drive themselves at freeway speeds are just two years away from the showroom, according to General Motors executives. The company announced Sunday that the semi-autonomous system for freeways will be an option on an unidentified new 2017 Cadillac that goes on sale in the summer of 2016. In addition, another 2017 Cadillac, the CTS, will be equipped with radio transmitters and receivers that will let it communicate with other cars, sharing data such as location, speed and whether the driver is applying the brakes. The announcements were made Sunday at the opening of the Intelligent Transportation Society World Congress being held in Detroit this week. They are part of a barrage of similar declarations that are expected from other companies throughout the week as the industry shows off progress toward self-driving and safer cars. The freeway system, dubbed "Super Cruise," uses cameras and radar to keep the car in the center of a lane and also stay a safe distance behind cars in front of it. The system will bring the car to a complete stop if traffic halts without driver action, and it can keep the car going in stop-and-go traffic. Other automakers, such as Mercedes-Benz, now offer similar systems that work at low speeds, but GM says it's the first to announce a system that operates at highway speeds. Others could have freeway systems in two years, though. "If the mood strikes you on the high-speed road from Barstow, California, to Las Vegas, you can take a break from the wheel and pedals and let the car do the work," CEO Mary Barra said in remarks prepared for the conference's keynote address on Sunday. But GM said the car still won't drive itself, and the company is working on a system to monitor drivers to make sure they're still paying attention. Details of that system weren't released. "Sensing technology is not yet to the point where the driver can check out," said John Capp, GM's director of global safety strategy. "This is a level of automation that can be done, that is feasible." The new Cadillac that will get Super Cruise hasn't been officially announced yet. But executives have hinted that GM will build a big rear-drive Caddy to lead its lineup in the coming years. Also Sunday, the Michigan Department of Transportation announced that it will partner with GM, Ford Motor Co.

2014 Cadillac ELR

Well, this is awkward.
A few years ago, Audi Of America's boss Johan de Nysschen went on record describing the Chevrolet Volt as "a car for idiots." Fast-forward to earlier this summer, and the well-regarded executive suddenly found himself in a new office with new business cards bearing the title: President, Cadillac. That means that among other challenges, de Nysschen is now tasked with selling the ELR, a car that is, at its core, a Volt in a sportier, less utile frock wearing a price tag that's twice as expensive.
Frankly, it's not a prospect we imagine the South African executive and recent Infiniti boss relishes. Just about nobody is buying the ELR - Cadillac has sold but 774 examples of its plug-in hybrid coupe this year and it presently has an almost a 200-day supply according to Automotive News. What's more, those numbers actually represent big improvements over just a few months ago, before GM started heaping on the incentives. The cynic in us says that the bad news for De Nysschen is that he's got a borderline sales-proof car in his new corporate garage. The good news? Cadillac customers apparently aren't idiots.