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Cadillac could base its entry-level sedan on the Chevy Cruze [UPDATE]

UPDATE: Cadillac spokesperson Donny Nordlicht tells Autoblog , "The post speculating on a future Cadillac model derived from the Chevrolet Cruze is completely false." Premium automakers Mercedes-Benz and Audi have seen plenty of success with new small front-drive-based sedans. The CLA-Class had its best January ever this year, while Audi moved more of its new A3 in 2015 than its predecessor sold in 2005 through 2010 combined. The fact that Cadillac wants a piece of that pie is no surprise, then. There's a new rumor that GM's luxury brand could launch its own compact – possibly called CT2 – to battle the Germans. Cadillac, a brand that's pushed hard to rebuild its rear-drive reputation, could develop a new entry-level model based on the front-wheel-drive 2016 Chevrolet Cruze's D2XX platform. Go ahead and make your Cimarron jokes. Sources are telling GM Inside News that a Cadillac built on the Delta platform would ditch the Cruze's turbocharged 1.4-liter four-cylinder for a 1.5-liter turbo in base models. General Motors' well received 2.0-liter turbo four would serve in higher-end models. According to GMIN, the Delta-based Cadillac would likely command a $6,000 to $9,000 premium over the Cruze, so figure $23,000 to $26,000 on the low end to $30,000 to $33,000 for something at the top of the range. As much as we dislike the kind of badge engineering that brought us the Cavalier-based Cadillac Cimarron in the '80s, the company has done an admirable job of distinguishing vehicles on shared platforms lately. A Delta-platform Cadillac would at least have a good basis – the new Cruze is surprisingly comfy. That said, we question GM's rationale if this rumor is indeed true. Put simply, Cadillac needs another sedan like I need another student loan payment. The company has four sedans, three of which overlap two segments, and none of which are selling very well. That's not because they're bad, but because customers want crossovers, of which Caddy has but one – the new XT5. Spending the time and money to add a fifth sedan to the mix when the company desperately needs to flesh out its CUV range would be a tremendous mistake. As much as we hate to say it, if Cadillac really wants to add a small, entry-level car to its range, it'd better be a crossover. Related Video:

GM offering factory-backed extended warranty for Chevys, GMCs, Buicks and Cadillacs

Cars are generally more reliable than ever before. When things do go wrong, every automaker offers some form of factory warranty (in most cases at least three years and 36,000 miles, though many extend even longer), providing peace of mind to new-car buyers that many faults will be fixed at no charge to the customer. Starting today, GM is offering a new optional plan that will extend the factory warranty on all new Chevy, GMC, Buick and Cadillac products. In the past, extended warranties have been offered as dealer add-ons, with all profits from these sales going to the dealership. GM's new program can be viewed as another nail in the the looming dealership-model coffin. According to Automotive News, some dealers aren't happy to see GM cut into their business like this, saying that it helps GM far more than it does dealers. GM says the new program will help keep customers in the GM family. Customers are also more likely to visit a GM service center rather than going to an independent repair shop. Currently, new Chevy and GMC vehicles come with three-year/36,000-mile warranties. Buicks and Cadillacs are covered for 4 years or 50,000 miles. The new program extends Chevy and GMC warranties to five years or 60,000 miles. Buick and Cadillac warranties extend to six years or 70,000 miles. GM, citing IHS Markit, says most owners keep new cars for about 6.8 years, so these warranties will cover most of the length of their ownership. The extended warranty will add between $1,000 and $2,000 to the price of a vehicle, and the additional cost can be rolled into the vehicle's purchase or lease price. Unlike many dealer extensions, the factory program covers the vehicle no matter who owns it. That should help increase the car's resale value if it's sold within the covered timeframe. GM says there's no deductible and no need to file a claim form when getting warranty repairs. Additionally, dealerships can continue to sell their own extended warranties or service contracts. Related Video:

GM adds 1,200 jobs at Detroit-Hamtramck plant

General Motors is making a big move at its Hamtramck, MI, factory, announcing it will add a second shift and hire over 1,200 workers within the next several months. It's expected that by early 2016, the factory will employ over 2,800 workers to build the Chevrolet Volt, Impala, Malibu, Cadillac ELR, and by early next year, the new CT6. According to GM Hamtramck spokesperson Courtney Zemke, 40 of the 1,200 positions are for salaried employees, while the remainder will be hourly positions. As for where these employees will go, positions are being made available across the factory, so GM isn't focusing on any particular area for its new hires. It's a similar story behind the hiring surge itself. GM said in its press release that the "second shift is necessary to meet forecasted market demand," a position Zemke reiterated. It's a matter of demand across the plant's portfolio, rather than any one particular product seriously outstripping supply. Naturally, the United Auto Workers is happy with the move. "The workforce at Detroit-Hamtramck is second to none," UAW Local 22 Shop Chairman Don LaForest said in the attached release. "We appreciate the opportunity to expand our UAW-GM family." Hiring is going on now, with the second shift slated to get underway in early 2016. GM's Detroit-Hamtramck Assembly to Add Second Shift and More Than 1,200 Jobs Plant will nearly double its workforce by early 2016 2015-10-22 DETROIT – General Motors is nearly doubling its workforce at Detroit-Hamtramck Assembly by adding a second shift and more than 1,200 hourly and salaried jobs. The addition of a second shift will increase the plant's workforce to approximately 2,800 people when hiring is completed. The second shift is necessary to meet forecasted market demand for the five cars produced at Detroit-Hamtramck. "This is the result of the award-winning vehicles Detroit-Hamtramck produces and the confidence GM has in our team to build world-class quality for our customers," said Plant Manager Gary West. Second shift hiring is underway, and the shift is scheduled to begin operations in early 2016. "The workforce at Detroit-Hamtramck is second to none," said UAW Local 22 Shop Chairman Don LaForest. "We appreciate the opportunity to expand our UAW-GM family." The 4.1 million-square-foot Detroit-Hamtramck Assembly opened in 1985. GM has invested $1 billion in the plant over the last six years, making it one of the company's most-agile manufacturing facilities in North America.