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Cadillac's 2-Year Goal: Follow the Germans

To get noticed for more than its Escalade, Cadillac is expanding its lineup to every size class.

By Clifford Atiyeh Apr 10, 2012 6:11AM

Cadillac ATS (c) MSN AutosThe Cadillac CTS is a competent, high-quality luxury car whether in sedan, wagon or razor-sharp coupe form. In V trim it can keep up with -- and occasionally surpass -- Mercedes' AMGs and M Series BMWs. But as fantastic as the CTS is, it’s just one model. Since Cadillac killed the slow-selling STS and old-school DTS last year, the company now only offers three.


Not surprisingly, BMW, Mercedes and Lexussell more cars than Cadillac. Despite 152,389 Cadillacs sold in the U.S. last year, Lexus was ahead by 30 percent; sales by Mercedes and BMW were each more than 60 percent higher. To that end, Cadillac will introduce two new sedans later this year, the full-size XTS and compact ATS, both replete with touch-sensitive controls and iPad-like media interfaces. It won’t be enough, however, until Cadillac can stare down the Germans in every size class, complete with a no-limit S-Class competitor and a revived XLR roadster.


We sat down with David Masch, chief engineer for the ATS, at the 2012 New York Auto Show last week and eked out some details from him on Cadillac’s evolution. Read on and tell us if you’re convinced.


MSN Autos: Is the ATS the replacement for the discontinued BLS in Europe?


David Masch: It’s not just a replacement for that. It is the intention to right-size a startup portfolio where they need to be, to be competitive with the other entries in the entry-luxe, mid-luxe or high-end luxe. This was an all-new -- from the ground-up -- architecture.


MSNA: Would you see Cadillac offering a diesel engine in the U.S.?


DM: There are discussions of that, but we haven’t announced anything yet. Our leadership would like us to pursue some diesels. We’re also pursuing hybrid strategies and things like that -- electrification. I think the market still needs to sort out where we want to go. We’re looking at all of those.


MSNA: For awhile, Cadillac has been talking about coming out with an S-Class competitor, V8 with rear-wheel drive, something more than the XTS. Is that project still alive?


DM: I’m not able to comment on that, other than to say there are a lot of other entries coming in the Cadillac portfolio, and it’s intended to be a full lineup of vehicles. We’re going to compete locally in North America, but we’re also intending to grow the brand globally, too. To do that, you’ve got to have a full complement of vehicles.


MSNA: Will there be a replacement for the STS?


DM: There are some other entries after the ATS launch, possibly the following year or the year after that that we will be continuing to expand the Cadillac portfolio.


MSNA: How long is it going to take for Cadillac to regain brand perception as “the standard of the world”?


DM: I think it’s a continuing challenge to earn the respect of the consumers to demonstrate that you are, in fact, building cars that are the “standard of the world.” We believe we’re there now. It now make take a little bit of time to [improve] some of the public perception, but there already are a lot of people that appreciate that. We’re on a very good path.


MSN: Do you consider Lincoln to be a threat?


DM: Not right now. They’re probably eight to 10 years behind where we were when we started the evolution and the change of Cadillac, and so, it takes time.


MSNA: The ATS is going after the 3 Series, but what’s with the CTS? I thought that’s what the CTS was after.


DM: The CTS is kind of in the middle ... [It] is a great product, but it has the concern, or the challenge, of wanting to compete on price of the entry-luxe cars and on performance of the mid-luxe cars.


Our final take: We’ll really know Cadillac has scored when its flagship car stops getting hilarious, insulting sneers from Jeremy Clarkson. 



(Edited from a longer interview.)


Clifford Atiyeh has spent his entire life driving and riding in cars he doesn't own. He was raised in Volvos and has grown to love fast, irresponsible vehicles of all kinds. He lives in Boston, is a member of the New England Motor Press Association, and has reported for The Boston Globe, Car and Driver, Popular Mechanics and The Times of London.

15Comments
Apr 12, 2012 2:57PM
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My very first car was a Cadillac and I currently own two Cadillacs. Call me a Cadillac enthusiast, but I'd never dream of purchasing any other brand. You'd be hard pressed to find another car company with such an extensive and storied past as Cadillac. Cadillac did indeed lose its way decades ago when most other American brands did, but Cadillac has once again regained its trademark leadership segment--STYLE. Show me a mass-marketed luxury brand that can compete with the likes of Cadillac's uniquely American style? I get to have cutting-edge styling with the satisfaction of knowing that my car was designed and built by Americans as well. Cadillac's reputation was founded upon reliability, precision engineering, and prestige. Cadillac had been making the world's finest luxury cars for more than 80 years when the toddlers of the luxury car market--Lexus, Acura, Infiniti--started cutting their teeth in the 1980's.


Apr 12, 2012 1:22PM
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I like the idea of the ATS. A smaller car with a 4 cylinder turbo for the high country here in Colorado. For me this has appeal. Up high I'll take the turbo over the V6. I hope the nose weighs less than the 6. Softer body lines draw me in even more." I like the looks of Audi's other than the Dodge truck grills." A real manual tranmission and a 8 speed auto transmission... Oh only a 6speed auto. Oh and no AWD, manual or 8 speed auto , with a FE3 type suspension.The Germans make'em.  I've owned almost everything German and Asian you can think of. I've wanted to buy domestic sooo bad it hurts. A little smaller G8 Holden with a clean, no boy racer scoops looking 2013 Malibu. Nope. A 300 to big. Ford, no live axels or east west drivetrains for me. The ATS is so so close but I'm starting to get that I'm Charlie Brown and the domestics are Lucy with that football, again.....

 

CMPSKI

Apr 12, 2012 1:44AM
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Whatever envy-ers say, Caddillacs today are very competent, upmarket, distinctive machines. If they can extend that throughout their line then within the next decade they could be on par with the best. I never owned one but I would be more than tempted to become a customer, especially in Europe where the streets are flooded with the big three Germans.
Apr 11, 2012 5:55PM
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The ATS is a step in the right direction. So if they R & D the new entries coming in the next few years they'll be right with MB,BMW and Audi . Keep it going Cadillac......
Apr 10, 2012 7:24PM
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I'll make this real simple  Cadillac  is twenty years behind.    Like the Republican party is the Michigan Legislature they are in their own world thinking that making up their own rules and spinning the truth.
Apr 10, 2012 6:42PM
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As far as I'm concerned Cadillacs are little more than optioned out Chevys.  Luxury cars should usher in new technology not sit idly by while the automotive group's lowest offering explores new technologies. 
Apr 10, 2012 6:30PM
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When you can't lead, you either follow or get out of the way. In the case of Caddy, they're not up to par for leading so they've instead chosen to follow. 
Apr 10, 2012 12:12PM
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nor is the CTS-V unique, as it is actually a Holden SS Sport-V, from Australia.

Small factual correction.  The Holden SS Sport-V is based on the larger Zeta platform, the CTS is based on the mid size Sigma platform.  The two platforms are actually very similar, but the Sigma came first in 2003.  The Zeta platform Holdens came in 2006.  So the Holden SS is actually a copy of the CTS in my opinion.

Apr 10, 2012 10:37AM
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TXMX, you seem to be forgetting about the 556 HP V8 offered in the CTS.
That is the same engine as the one in the Corvette. It is not unique to the CTS-V, nor is the CTS-V unique, as it is actually a Holden SS Sport-V, from Australia.

Personally, I would much rather have a Holden than a Cadillac. I like the styling better.
Apr 10, 2012 9:32AM
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TXMX, you seem to be forgetting about the 556 HP V8 offered in the CTS.  That's unique to that car.

You mean the LSA engine?  The same engine offered in the Corvette ZL-1 and fundamentally similar to the same LS engines offered in the Silverado?


As for economies of scale helping to keep parts availability up and price down, you forgot one thing.  Luxury cars aren't supposed to be cheap.  A true luxury car demands a certain level of exclusivity.  That's why cars like the Lexus LS460 and the Infiniti M56, while nice, will eternally be hanging behind Mercedes-Benz and BMW.

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