Thursday, January 12, 2012

Cadillac Contemplating BMW X3-Rivaling Compact SUV



A couple of days after the official revealing of the brand-new ATS that will compete in the premium sedan segment against the likes of BMW’s 3-Series, Cadillac is rumored to be going all out against the Germans. Aside from the development of a diesel version of the ATS, GM’s luxury brand is also said to be considering a smaller SUV to rival the likes of the X3, the Mercedes GLK and the Audi Q5.
“We’re looking at options there”, Cadillac’s vice president of sales, Kurt McNeil, told Businessweek at the Detroit Motor Show. “I think it would go a little bit more head-to-head with, like, the X3.”
Cadillac already has one commercial success in the SUV segment with the SRX, which saw its sales surge by 11 percent last year, so a more compact sized model with a lower price tag could fit nicely in its range and allow the company to compete in other markets outside North America.
McNeil admitted that Cadillac’s push to become a force to be reckoned with in the premium segment is likely to influence the small SUV: “"he fact that Cadillac is becoming more of a global brand will certainly play a role in that decision."
The Cadillac exec also added that GM is keen to reinforce the brand's image as a luxury carmaker, having already reduced fleet sales, mostly to rental car companies, by 33 percent in 2011 in an effort to increase its models’ resale value.


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