When looking around the automotive luxury market landscape in America, small cars are becoming increasingly more apparent. Audi as the A1 and A3, Mercedes has the CLA, and BMW has the 2 Series and i3. Consumers seem to desire them because of the prestigious brand being sold at relatively affordable price. Yet Cadillac is still absent from the party. But not for long, according to Car and Driver.
In an interview, Cadillac marketing chief Uwe Ellinghaus heavily hinted, even detailed, that the brand is busy with a new small sedan program, or even 2+2 coupe program, set to compete within the subcompact luxury vehicle market. But unlike most of the vehicles in the segment, which are primarily front-wheel-drive-based outside of the 2 Series, Ellinghaus and company are in line with the car entering the market with a rear-wheel-drive-based setup. Tantalizing, no?
“Our future is rear-wheel drive and, of course, all-wheel drive where appropriate,” Ellinghaus said. But that’s not all he said.
“My personal crusade is to spare us a hell of a lot of dilution of our emerging brand image by moving to front-wheel drive for potential smaller cars,” he continued.  “As you know, the entire competition is moving to front-wheel drive for their entry-level cars. I am under a hell of a lot of pressure, as are [Cadillac chief engineer] Dave Leone and [executive director of Cadillac design] Andrew Smith, because front-wheel drive offers these package and cost advantages. If we are just after the lowest price point possible to enter the category, we would have to go front-wheel drive tomorrow. That said, what is the reason to buy a Cadillac in that segment in a couple of years’ time when all the German competitors will have front-wheel drive? It is that we are maybe—if we are lucky—the only ones left with rear-wheel drive.”
Of course, a fwd small hatch like the A3 or A1 may have a broader sales appeal than a less-roomy and less-practical mini ATS, but Ellinghaus argues that the aesthetic and dynamics of an rwd car would also draw a crowd. It’s suggested by Car and Driver that the upcoming car will utilize GM’s Alpha architecture that also underpins the ATS, CTS and soon-to-be 2016 Camaro, however the timetable for this vehicle is not too close. Expect a sub-ATS to pop up around 2017, if ever.
Comments
All this is wonderful. But you know, my mind is actually going in the opposite direction – larger not smaller. I recently discovered that as much as I love the ATS (more my kinda car IF I didn’t have a family) and the XTS (the kinda car that I WOULD get if all other members of the family had their own cars), I would seriously prefer a Cadillac that was on the Lambda platform. Or even a CTS-based Alpha. Right now I need the extra space.
“Or even a CTS-based Alpha.”
The CTS is already using the Alpha platform.
I figured creating a vehicle for this segment for Cadillac would be somewhat of a step backwards; the affordable luxury image is what drove people away from Cadillac. But since this market is among the fastest-growing, it makes sense for Cadillac to compete.
But what stands out the most is the fact that Cadillac is willing to standout in the segment by going RWD. “Our future is RWD, and AWD”. All Cadillacs going forward should follow this path. Leave the FWD vehicles to Chevy and Buick. Cadillac needs all the exclusiveness they can muster to keep sales strong!!!
Larger would be nice but that is just not in the cards anymore.
All the MFG including all the luxury brands are scrambling to find ways to down size their more higher volume products. They need to offset the fuel ratings of the few larger models with more smaller models.
Also they are making a grab and a lower cost market because so many customers are down sizing do to older age and the poor economy.
The fact is like I have warned the auto market will be radically different in 10 years. Bill Ford as echo’d the same thought. IF you do not believe it just look how the Major MFGs like Benz and BMW are now embracing FWD like it is the greatest thing out. In the past they showed such distain and now they embrace it because they have to.
The economy has made many people who could afford more expensive cars down size. To gain them back Luxury brands either have to make smaller cheaper cars or they have to discontent cars like Audi A3’s are.
But if Cadillac choses to do a smaller RWD this could deliver other smaller RWD models to another GM division.
Trust me all the MFG other than Honda are running scared as to where they are going to go with many models as the regulations are going to play hell with them. Even a Republican in the White House is no longer a guarantee that the regulations will be rescinded.
It will be interesting but painful to watch at times.
I fully agree with your take on the fuel economy thing. I’ve been saying this for a while now. These new EPA fuel economy standards are going to require smaller, lighter vehicles and technology advancements. Something else I’ve always said or a belief held is that they just need to offer them to get the gov’t. averages where they need to be. It would also be helpful if things were done right and they were appealing so that they’d sell and make the co. money as well so as not to be a burden only to get dropped shortly. Another aside to this would be that it could end up being more affordable as an entry Cadillac, but just don’t be skimpy with it and scare the buying public away thus giving yourself another big fat black eye(Cimarron).
Why does Cadillac need to “to offset the fuel ratings of the few larger models with more smaller models”?
Cadillac is part of GM — isn’t GM (as a whole) evaluated, not Cadillac? In other words, if Chevy sells enough Sparks, Cruzes and Volts and Buick sells enough Encores and Veranos, etc, that will qualify the company, allowing Cadillac (if GM so chooses) and GMC to make higher priced, larger vehicles?
A hypothetical situation.
You’re young, college educated family with 1 child and $30K to spend on a car. A well equipped Camry can be had with that money, but it also gets you into a smaller CLA or an A3. The Camry may be larger and offer more for the money, but the German offerings have clout and status that no Camry could ever project of its owners.
Sub-compact luxury cars may be lauded by some, but they exist to tempt and lure consumers away from the mainstream, non-luxury cars with the promise that the product is that much more special than what they would otherwise choose by default.
Yes, more money will be spent getting into the A3, but the A3 isn’t your grandmothers Camry, and it isn’t saddled with all the negative baggage (boring, bland, vanilla, soulless, appliance) that comes with every new Camry.
As for Cadillac, I don’t think RWD is strictly necessary for the segment. They need to make a compelling product that people will want for the image and clout it projects of them.
I fit this category, and instead I got platinum dts 2010 under 36k miles and extended warranty… man forget those small cars!!!!
You’ve bought a used, 4 year old K-body DTS with 36K miles on it that you cannot account for.
It proves my point; that you’re not a luxury consumer because you’re price conscious. Cars like the above were never on your shopping list because your budget was too small.
The DTS wasn’t anything special when it was new as its platform was just a variant of the much older FWD G-body, and given how much they depreaceated, it tells me you were neither in the market for the well equipped Camry or the CLA/A3.
Yeah, even a new Camry has more clout than a 4 year old DTS.
Good news from Mr. Ellinghaus. Now how about the Code130R type of Bowtie to make my commute a little better. Not much else to say since for the most part good comments have already been stated.
I hope this doesnt backfire on Cadillac. The reason the subcompact luxury segment is hot right now is because people who never could afford a bmw, audi, or mb all of a sudden can. I dont know if Cadillac has the same clout, status, or whatever you want to call it as the germans. Also you have to remember that RWD is more expensive. So it will probably be a little more expensive than the competition. Very few people know the difference between FWD and RWD or care about it. When it comes out(if its rwd) im sure it will have more substance than the rest. I just hope thats enough.
I like the idea, but Cadillac still lacks crossover medium under the SRX
Regards from Spain
Boomers still count in the market, but this will not always be the case. Boomer empty nesters don’t need a large car, as the majority drove gutted compacts in the 60s and 70s. Now the segment needs comfortable small vehicles. Little back seat room, no problem.
GM already has this vehicle in the Cruze and it’s variants. Its less of a problem, to give Cadillac a variant based on the Cruze platform, than create a rear wheel drive variant.
Small, front wheel drive autos, are much more stable on the highways, than rear wheel drives. Besides cost… the Europeans may finally be realizing this attribute of front wheel vehicles.
Like it or not… Boomers still command a huge market voice. The wise corporations realize this fact… Depends anyone?
There’s a lot of potential for a small RWD platform so I don’t think it is crazy.
Market trends suggest a small revival of the roadster market. With the Saturn Sky and Pontiac Solstice off the market, there’s nothing to say there isn’t room for a Chevy variant in the coming years.
If that is the case, it would be an ideal platform to share with cadillac for one OR TWO cars. Cadillac is out of the convertible market and could do well with a 2+2 convertible in the likes of the BMW and Audis. They could also go with a small 4 seater, and could compliment it with a Z4 competitor. It probably wouldn’t be a huge hit in the US, but globally it could make some headway.
There’s also the ability to have cadillac developing a 130R equivalent. Even if the 130R is build on the same platform as the ATS, that may be a short term plan.
Lastly, don’t be too US-centric and forget about China. GM sold more cars last year in China than they did in the US! Cadillac is hugely successful in China. In this market, a small luxury car could have some serious staying power. While in the US, we may question if cadillac has the clout of the germans, in other asian markets, the germans don’t have the clout of cadillac. Sales are up 67% in one year in China, up to 50k and with the new manufacturing plant there, Cadillac is already slated to build one new car model a year.
This may be good news for the small RWD Chevy.
I feared the word of a turbo 4 going into a Camaro as a possibility could have meant the chance for the small coupe declining. But this news may help spur it back into the possibility range.
Either way I would not be surprised if Cadillac could still have a FWD offering at some point for even smaller cars.
Rear Wheel Drive used to be the norm, but when the markets discovered that Front Wheel Drive was more economical, seems like everyone went that direction.
The mentioning of BMW and Benz in their front wheel drive category made me laugh, simply because if you have never been to Germany or Austria, I will ask you why not.
For example in Stuttgart Germany, home to Benz and Porsche, the layout of the roads has not changed in forever. Tight narrow curves with one lane in either direction in a terrain that sets you back in time a minimum of 200 years.
The designs and agility of their vehicles are the norm for the countries for which their vehicles handle everything thrown in front of them. Snow and Ice covered roads during winter are literally impassable for the rear wheel drive, yet you put a front wheel drive vehicle out there and you’re gone.
Here, in America it’s completely the opposite, with more freeways and interstates then meet the eye.
Granted the economy generates what is designed and built, and having the front wheel drive vehicle says economy to the families looking to buy into the class of the next generation.
The downside to the front wheel drive is the CV Joints. CV stands for “constant velocity”, meaning that vehicle will wear out front tires more quickly, as well as the CV Joints and CV Boots which are rubber covers that fit over the CV Joints. When you look at the schematics or blue prints of what the CV Joint is, you will come to understand where the torque is generated from. It’s not what you think.
Front Wheel Drive is “a pull you down the road vehicle” – Rear Wheel Drive is “a push you down the road vehicle”.
The markets in years past in America had changed over to front wheel drive to increase gasoline mileage, yet at the same time this has led to lower the costs of making the vehicles, which in turn kicks up the profits margins across the board.
Granted, the muscle cars from generations past still run rear wheel drive, simply because the torque ratio from the transmission down the drive shaft to the pumpkin which displaces evenly at best the torque to spin the rear axle is greater than the ability of a front wheel drive vehicle to handle safely.
The variables of torque to weight displacement ratio must be as close to even or you will end up twisting your rear axle. The suspension must be set up to where there is equal load displacement on either side, right or left, at the same time. Standard factory suspension will tweak under duress and over torque with zero compensation and in turn will destroy the rear end.
For auto manufacturers to return to the rear wheel drive platform in all honesty can and will be taken either way. Is it that their trying to find their niche in design and performance, while still achieving the gas mileage estimates set down by the government, or is it simply because they are no longer able to comprehend common sense in the economy base of this country?
Competition in the world’s economy has lit a fire inside of the designers, for example the Camaro, knowing that very design remained on paper for 8 years prior to the first run production.
Everyone seems to think that going back to “old school ways” is the answer, yet once they understand that the cost per gallon of gasoline is no longer “$0.25 per gallon”, and that now there’s only a handful that are quite literally able to meet their total family expenses, every month, the population overall will still look at economy over “gee, I wonder how fast this baby will go”!
Businesses are closing shop because of the cost to do business on a day to day is exceeding their bottom line, and now with this mandated insurance imposed by our leaders in government has literally got them leaving the country, just to save on expenses.
Job growth in this country is a farce, when unless you own your own business or have been with a company for eons, life kind of leaves you wondering, and it’s not about buying a new vehicle just because all of the advertisements and your friends say it’s the best choice you can do.
You want more room inside of your vehicle? Buy a Mini Van or a Wagon, not a Cadillac.
TL;DR
Yeah that would be an awesome lil car. Just like my older IS300. I really wanted the ATS but it’s just too big for my liking just like all the other cars in that segment. So Rwd would definitely be a good alternative to the FWD you’re force to get from audi and cla. I just hope when they do they’ll give a manual tranny too. That would just make it redundant if they didn’t. Yeah I’d buy that in a heartbeat. 🙂