Cadillac has a legitimate contender on its hands with the CTS. The luxury sedan is selling pretty well considering the down market, and it will soon be joined by wagon and coupe variants in the not too distant future. Beyond the CTS, though, Cadillac's car offerings have been less successful.

According to The Detroit Bureau, Cadillac is hoping to improve its standing by bookending the CTS with a smaller BMW 3-Series fighter and an all-new flagship. The website quotes Cadillac Marketing Chief Steve Shannon as saying that a sub-CTS is 24-30 months away. Cadillac designers are evidently working on sedan, hatchback, wagon, and convertible variants, although it is unclear what markets would receive what variants. Shannon believes the small Caddy could be the global sales leader for Cadillac, and diesel powerplants may be available at home and abroad. The question remains whether the sub-CTS would come in the form of the RWD Alpha platform GM is rumored to be working on, or a FWD platform in the mold of the Converj concept from the 2009 Detroit Auto Show.

For a while now, rumors have swirled that Cadillac would fold its slow-selling STS and long-serving DTS models into one new successor. The top-line Cadillac has always been too close in size to the CTS (which is itself larger than most of its cross-shops), and sales never really took off for either – at least outside of the livery market. GM is reportedly looking to change that with a new model that will better differentiate itself from the CTS in terms of size, price, amenities, and style. We've been hearing about a new replacement for some time, with most talk surrounding whether or not the project is on hold. Though the replacement sedan would be larger than the STS, Shannon insists that fuel economy would be a top priority considering the ever-tightening standards worldwide.

The real question for Cadillac is whether or not GM will be able to afford the new models. If the General goes into bankruptcy, nobody really knows what stands to get cut. Shannon optimistically says that GM's brand bloodletting could work in Cadillac's favor, though. With fewer brands to feed, GM's luxury division could finally get the attention it so richly deserves.

[Source: The Detroit Bureau]

750-hp 7.5-liter V12 from the Cadillac Cien concept

Here's a shocker: Cadillac has reportedly canceled plans for a range-topping V12 engine. Really, you don't say? Last we checked, General Motors didn't seem to have any problems extracting plenty of performance from its 6.2-liter supercharged and 7.0-liter naturally aspirated V8 engines, and the majority of the development work has already been done for a Caddy installation. Additionally, we've heard some rumors of a possible twin-turbo version of GM's excellent 3.6-liter direct injection six, which could find a cozy spot under the hood of the next Cadillac sedan.

Cadillac is also said to be reconsidering its premium large sedan, where the V12 was originally intended to reside. In its stead, GM's classiest division will focus in on the replacement for the STS and DTS sedans. Also rumored is a new naming convention, as if the waters weren't already murky enough. Will the next Caddy sedan be known as the DT7? We sure hope not. Will it be based on the new Zeta platform? Well now... that decision would get our seal of approval.

[Source: Inside Line]

Click on the image above for our high-res 2008 Cadillac STS gallery

It may be the end of the Big Cadillac. Not only has General Motors put plans for a DTS/STS replacement on the back burner, but apparently the flame is close to being extinguished as consumers are demanding smaller and more fuel efficient vehicles. Cadillac's banner year was 1954 (the year Elvis was driving a pink '54 model). Back then, the big Caddys represented wealth and success (and gas was only $.25 per gallon). Today, a 4,000-pound super-sized sedan averaging 15 mpg in the city cycle doesn't bode well with anyone. With plans for their replacement on hold, and the rumor that the DTS/STS my be combined into one new vehicle unconfirmed, GM is focusing on coupe and wagon versions of the CTS and smaller and more fuel efficient SUVs. For the record, we don't consider the just-announced $71,000 2009 Escalade Hybrid smaller and more efficient....

[Source: Bloomberg]

When the American Axle strike began, GM had a 106-day supply of pickup trucks on dealer lots, and even a month-long strike likely wouldn't have hurt the Detroit automaker. It has now been more than a month, the strike isn't any closer to ending, and now GM's car plants are joining its truck plants in the unemployment line. Friday marked the last shift at the General's Hamtramck, MI plant, which builds the Buick Lucerne and Cadillac DTS, due to a lack of parts coming from American Axle. According to Automotive News the pain may not stop there, either, as the Lordstown, Ohio plant may have to shut down production of the Chevy Cobalt and Pontiac G5 due to a lack of brake components. GM may not have been all that concerned about the American Axle strike when it began in February, but now after a month with barely any talks and a quickly growing list of shuttered plants, we're guessing things are getting a bit tight over at the Ren Cen.

[Source: Auto News (subs. req'd)]

The rumor that the Cadillac DTS and STS will be nixed has officially been confirmed in an interview with the brand's general manager, Jim Taylor. Sales of both models are down for the year, and Taylor admits that one premium-luxury sedan will be developed to compete in the segment.

In the Automotive News interview, Taylor and his superior, Troy Clarke, GM's president of North America, also confirmed that a new entry-level model, designed to slot in below the CTS, is a distinct possibility. Both execs feel that Cadillac's brand image could sustain such a vehicle, likely to be priced in the $28,00 to $32,000 range.

No time frame was given for either new model, but Mr. Taylor also mentioned that a high-end, ultra-luxury flagship is still alive and well.

[Source: Automotive News – Sub. Req.]

UPDATE 1 - Ford announced this morning (9/15) that it will continue to offer the Town Car beyond 2007. More after the jump.

In New York City, black Lincoln Town Cars are almost as common as yellow cabs. Workers who stay late at their offices often pick up the phone, dial a livery service, and collapse into the back seats of the ubiquitous Lincs for the ride home. This sequence is replayed in urban centers across the country. The Detroit News knows this, and wonders what's going to happen if the big Linc goes to automotive heaven after 2007 as has been rumored.

The article mentions the Mercury Grand Marquis and the Chrysler 300C as potential replacements. While this could be a golden opportunity for the Chrysler 300 (and its long-wheelbase variant) to move in, and maybe the Cadillac DTS as well, we'll bet on the Merc and its Ford Crown Vic twin.

Why? They're built on the same platform, have the same powertrain, and equally substantial trunk space. Fleet versions are available with a 6" wheelbase stretch, which takes care of the discrepancy in rear-seat room. Fully-loaded examples are almost as plush, and importantly, servicing them should be no different than servicing the Town Car. We don't see why livery services would want to move away from the Panther platform cars, which have more than proven themselves in America's urban jungles as taxis, police cars, and upscale chauffered rides like the Town Car.

(Continues after the jump)

[Source: The Detroit News]