mobile-menu-icon
GM Authority

Cadillac XTS May Be Axed Following Introduction Of New Cadillac Full-Size Sedan

Yesterday it was revealed that production of the next-generation Buick Regal may move from General Motors’ Oshawa Assembly plant, where the current car is built, to Opel’s plant in Russelsheim, Germany. Oshawa is a consolidated line which also builds the Chevrolet Camaro and Impala, models which will eventually move to production facilities in Lansing and Hamtramck, MI., respectively. This leaves the future of the Cadillac XTS, the other model Oshawa builds, up in the air.

The fact that GM has not spoken about where production of the XTS might go isn’t what is making some think the car will be discontinued. Cadillac is working on a new, rear-wheel drive full-size sedan to compete with the cars like the Mercedes-Benz S Class and BMW 7-series, rendering the full-size XTS a bit pointless.

Automotive News notes the XTS is a relatively low-volume car and could easily be moved elsewhere if it lives on past the introduction of Cadillac’s new full-size flagship, which may arrive as early as 2016. If it does stay in the lineup, it could find itself a niche by undercutting the price of the new full-size sedan and offering customers a more affordable alternative, but this doesn’t seem likely.

The other question the departure of the XTS leaves is in regards to what will happen to the Oshawa Assembly plant. If the Regal is built in Germany, the XTS is killed off, and the Camaro and Impala have both moved production to Michigan, what is left to build there? Canada has long been known to be one of the more costly places for automakers to build cars, so it seems unlikely GM would go out of its way to add a new model to the plant. GM also signed a “vitality agreement” with the Canadian government as part of its bailout in 2009 requiring it to build cars in the country until at least 2016, meaning it will expire almost just in time for the new models to arrive.

 

Sam loves to write and has a passion for auto racing, karting and performance driving of all types.

Subscribe to GM Authority

For around-the-clock GM news coverage

We'll send you one email per day with the latest GM news. It's totally free.

Comments

  1. Not sure exactly what type of engines the LTS might end up getting, but hopefully the 4.5L TT V8 will find it’s way in the LTS. At least the base engine in the LTS should be a 3.6L TT V6. GM has to make sure that the LTS can deliver in order to unseat the Lexus LS as the alternative to the likes of the S-class, 7-series, and A8, and that’s no easy task at all.

    Reply
    1. Also to make matters worse for the LTS, the next LS and 7 series could debut at the same time.

      Reply
      1. I’m not sure that would “make matters worse.” It just means the competition “should” be at the top of its game and comparisons will be fair given that the cars are all new.

        Given how well Cadillac has executed the current generation of new vehicles (Escalade and CTS, especially), I have confidence that they can pull off something really special. The question becomes marketing. Can they convince people that a competitively designed and priced Cadillac is worth the money? They haven’t really succeeded so far.

        Keeping my fingers crossed that they hit the Omega (LTS?) out of the park…with a real name and no more alphabet soup!

        Reply
    2. What 4.5L V8? To the best of my knowledge, that engine doesn’t exist at all other than on some spec sheets.

      Reply
  2. “Chevrolet Camaro and Impala, models which will move to production facilities in Lansing, MI. and Hamtramck, MI.,”

    I was under the impression that the only Impala begin built at Oshawa was the fleet-only Impala Limited, better known as the last gasp of the W-body.

    Reply
  3. The new Impala is built on the flex line along with the XTS, Camaro and Regal. The old Impala is built on the consolidated line along with the Equinox.

    Reply
  4. I find it strange that in the comments that It is mentioned that ” Canada has long been known to be one of the more costly places for automakers to build cars”

    Really? With the exception of some very recent “analysts” stories, I’ve been hearing for decades that due to much smaller health care costs and currency conversion the opposite is true. This is why Ontario is not only home to multiple assembly plants from the big 3. But also multiple assembly plants from Toyota and Honda. Oshawa is also well known for one of the highest productivity and quality facilities in the world. If Ontario is so expensive to build cars why does Ontario build more cars than Michigan or any other province or state?

    As far as analysts are concerned there are liars, damn liars and then there are analysts.

    If this happens, and Oshawa does close I may have to consider buying one of the last Oshawa built cars. It might be the last decent built GM vehicle.

    Reply
    1. And the Great Canadian Inferiority Complex strikes again:

      Coming from a person who actually lives in Ontario, Canada, I can give you an honest account:

      * Ontario, CANADA IS now an expensive place to manufacture/ do business due to the Liberal government who has raised electricity prices sky high and taxes too. Everyone is feeling it here…It is not just GM, as many international companies have left and decimated the economy.

      * The only reason Honda and Toyota are in Ontario is because they were handed out hundreds of millions in tax breaks and grants by the Ontario government to keep union jobs here (a.k.a. buying their votes). Much the same GM was in the past, not necessarily because it was a super great place to make cars. Too bad they were late to the ball game, which is typical of many things in Canada, as Mexico and other places now offer lower costs, etc. to car companies.

      * Michigan is now a better place to do business for car companies now that the unions have been reigned in and Michigan needs jobs.

      * GM is going to move to where it has lower costs, period. If it moves to Michigan, it is because it is cheaper than Canada. Canada must up their game or deal with it…A lot of manufacturing has left Ontario, Canada in the last decade. Might want to clue in why…

      * At the end of the day, GM is an American company that must first be responsible to the American economy. My fellow Canadians don’t mind yapping about “Canadian Made” this and that, and that we Canadians “must buy Canadian products only”, which really just translates as nationalistic rhetoric for NOT buying American products…Don’t whine and cry when the neo-nationalism goes the other way.

      My 25 cents worth…. 😉

      Reply
      1. Interesting.

        I live in Kitchener, Ontario and I’m an Engineering manager that develops products in the electrical industry so I would consider myself well informed on Ontario’s economy and costs of doing business.

        I see you listen only to propaganda and clearly can’t think for yourself.

        Have you ever compared our Electricity rates to other places or do you only regurgitate what others tell you?

        While the electricity rates in Ontario are not cheap they are not expensive either. They sit around the North American average and are currently about 30% less than most European countries. And Ontario has done this with now having one of the most sustainable electrical grids in the world.

        http://www.ieso.ca

        Also Ontario has the lowest corporate tax rates in the industrialized world. Yes that even includes all the US and even Alberta.

        As for Honda and Toyota the incentives they received from the Ontario government is from a pool of money allocated to employee training. The big three automakers all also have access to these funds. These funds were not specific to any one project or company.

        So Ontario is not this business wasteland analysts with an agenda would like us to believe.

        GM is a global publically traded company and it’s commitment is to it’s shareholders. At the end of the day GM will do what it feels is best for them.

        Reply
  5. The real issue in Canada has been the CAW as they have been playing hard ball compared to the UAW. GM has more plant capacity than they need and can shop these models around and just see who is willing to work with them and not against them.

    Anyways this car may or may not go away as this car may hang around like the rental Impala to serve fleet sales and not hurt the resale value of the ATS, CTS and other Cadillac models with cheap fleet sales.

    Reply
  6. Scott,

    While it’s true that Unifor (CAW no longer exists) has not conceded as much as the UAW, they still have made major concessions.

    The UAW needed to make major concessions just to be competitive.

    Reply
    1. Unifor is as corrupt and bloated as the CAW before it. There is a reason why unions outside the cozy government relations have been in serious decline in Canada. Low membership and support is why the CAW merged and created “Unifor.”

      Get over it, because car manufacturing is on its way out in Ontario, Canada due to high taxes and electricity rates…Not to mention many “developing nations” can do the same thing at a fraction of the cost.

      I do find it ironic that the Liberal “eco” Ontario government, which preaches public transit and the “green economy”, is so obsessed with handing out hundreds of millions of dollars of taxpayer money to build polluting plants and more cars…oh, wait,the union…*sigh*

      Reply
      1. Thanks for giving us feedback. I noticed that vehicle monthly sales are low compared to US monthly sales. Are high electricity cost and taxes hindering people to purchase vehicles?

        Reply
        1. What’s funny is Canada in general has very low costs of electricity. Ontario’s rates are average for North America but also well below the global average.

          Corporate taxes in Canada and especially in Ontario are the lowest in the industrialized world.

          The reason cars sales are slower in Canada is due to our much higher gas prices and other than Alberta the general Canadian economy has been slow to start moving up. The Canadian economy has always followed the US economy in a general sense by a couple of years. When the US took a big hit we also took a hit. Our banking system and housing market was more robust which allowed us to mitigate many of the major problems but eventually it lead to a stalling of our economy. Now that the US economy is picking up the Canadian one will eventually follow but it will take some time.

          General Motors also took a big hit here. It started with the death of the popular brand Pontiac which often outsold Chevrolet here. The bailout was even less popular (people asked why are we helping to bail out an American company?). Also the recalls are having a big effect in Canada. I’ve had several co-workers who were considering buying a new car but wouldn’t even look at GM because of “all the recalls”. I own a 2013 Chevrolet Volt (and even after plugging in all day I still pay less for electricity than I do cable “even here in supposed evil Ontario”). I’ve had people coming up to me asking me if I’m going to ditch my car because of all the recalls. Even though my car has never been recalled.

          Reply
    2. Oh you can all it what you like but the blunt truth is GM has had more union issues in the great white north than they have had here of late.

      The unions have for a long time used leverage to get their way and today with over plant over capacity the automakers now have some traction.

      The simple truth is who ever cooperates the most gets the work.

      Reply
  7. I think they should kill the XTS and and have a new segment for Chevy and Buick…..the 2016 Buick flagship Lacrosse can be 199 inches long and the 2020 chevy impala can be 197 inches long….the new full-size segment should be 197-199 inches long and 55-57 inches in body height….instead of 200+ inches long and 58-59+ inches tall…shrink full-size cars a hair and get rid of all the wasted space…Cadillac can get away with an over size flagship.

    Reply
  8. Rye Shelton, the point of a full sized sedan is wasted space you really don’t need most of the time, it doesn’t matter if it’s mainstream or luxury, that’s always been the point.

    Reply
  9. Ok so this is the second day I have read here on this site that the Impala is leaving Oshawa, I have to assume it’s the new generation model your talking about, my question is : where did you receive your information? This is totally news to us here in Oshawa! Yes we know the camaro is going to Lansing as a 6thgen model, yes there might be the possibility of a German built regal in the future ( your words) but we have never been told anything along the lines of the new generation leaving. So again please tell me your source along with the time lines when it’s leaving. Regards from Oshawa.

    Reply
    1. I agree with you. Sometimes people can’t use logic.

      According to the rumours DHAM is apparently going to build the next E2XX Lacrosse, Omega Cadillac, D2XX Volt’s and ELR. Oh and it will take over full production of the new Impala too! “even though DHAM has to get some of it’s stampings shipped from Oshawa because they haven’t figured out to make them properly yet”

      Something doesn’t add up.

      What I don’t get is GM shuttered a number of plants after the BK to right size it’s capacity. And now that GM is growing and many facilities are running near capacity (some like CAMI are running over capacity) they are going to start closing plants?

      Not only that people jump up and down and go ohh that makes sense lets close our factory with the highest productivity and quality.

      Reply
  10. The next Buick Lacrosse to be a bigger and better looking four door coupe than Audi 7…..Porsch Paminara….BMW 6.

    Reply
  11. The 2016 Buick Lacrosse to be 198.5 inches long……and 56 inches in body height…. like a four door coupe….just a thought.

    Reply
  12. I hope GM gets some new engines soon! The LTS should be powered by a 3.2t V6 (VVT, SIDI, IVVL, and VTM) making 380HP and 395-410LB-FT as well as a 5.3t V8 (VVT, SIDI, AFM, and VTM) which punches out around 525HP and 535-550LB-FT.

    Reply
  13. I’d like to point to out that the Chevrolet Camaro, Chevrolet Impala, Buick Regal, and Cadillac XTS are built on the FLEX line at GM Oshawa. Flex line is designed to accommodate any car GM decides to build on it. Consolidated line only handles the old impala which is used for fleet vehicles and the Chevrolet Equinox.

    Reply
  14. There is a lot of truth in many of the comments above. Oshawa DOES win many awards for quality. Surely that should count for something? As someone who grew up in a GM Oshawa family, I find it unfathomable to think GM would leave. I think there is lots of politics going on behind the scenes. I know my Brother who still works there , works his ass off. The days of union guys sitting around playing cards etc are long gone. And sorry to say, but many mfg jobs have gone away due to the insane govt we have here.

    Reply
  15. Stopping production at Oshawa probably makes for a good financial decision and also decreases the CAW’s membership which I believe is GM’s biggest reason for no new products at the plant . Some of GM’s decisions of late seem a bit confusing . The Buick Regal going to Germany , whats the cost of shipping them to the US ? And Cadillac Headquarters moving to New York , the new CEO of Cadillac is wasting money . Why not bring the new hip engineers to Detroit !? And thepossibility of the XTS going away because of the new Omega based high line car coming . All the money spent to develop and build that car , the engineering and training that went on , what a HUGE waste of money . I don’t see that they sold enough of them to cover the costs involved . Sounds like the OLD GM to me . Just throwing money away . Does anyone remember gool ol’ Roger Smith and his idea to bring up Saturn but not under the corporate umbrella . A ” stand alone ” company . Cadillac now wants to try this experiment again ? NOT GOOD >

    Reply
  16. Are there plans to address the serious railway shortage from the Ontario plants? i would be very hesitant to commit to new or further production from those plants unless I could be guaranteed that my product wasn’t going to languish in holding lots. That time spent between build and sale is costing GM money by the day. My 2015 Regal waited in a holding lot for a month before GM could get a railcar to ship him to me. Dealers are also complaining about delays and a lack of supply for the Equinox/Terrain.

    Reply
  17. So I’m doing some shopping… If I decide the xts and they axe it, what’s going to happen with the value of the car? I’m going for the smoother ride and room. My next choice is the 14 cts. But still prefer the xts and its in my budget right now. Heellppp lol

    Reply
  18. Cadillac sold 1,600 XTS vehicles in the month of September compared that with 1,319 CTS as the XTS has almost consistently outsold the CTS this calendar year; thus, unless Cadillac makes a higher profit from each CTS sale than the XTS, you’ve got to wonder why Cadillac would consider discontinuing the XTS especially when there’s no guarantee that the upcoming CT6 will be an immediate success especially if the reports on the base price being $70K.

    Reply

Leave a comment

Cancel