REPORT: Cadillac to base new sub-CTS on front-drive Epsilon II platform

Just a year ago, the future of Cadillac's line-up looked pretty bright. By 2010, the CTS would spawn coupe and wagon versions, the "super-Theta" platform SRX would replace its Sigma-based predecessor, the Escalade would get a Lambda-based replacement and the Converj would come to market. Cadillac was also tipped to launch a new small sedan to slot in below the CTS using the new rear-drive Alpha platform, plus a new larger sedan to replace the aging DTS and STS models. However while the CTS derivatives, the new SRX, Escalade and Converj are all still in the works, drastic cutbacks at GM have meant the Alpha and DTS/STS successor have been canned. In their place, the next-gen. CTS is expected to grow larger, while a new front/all-wheel-drive sports sedan is now tipped to enter into the mix.

In order to make the Alpha compact rear-drive platform feasible, GM would have needed to spread development costs across several of its divisions, but many of those brands – chiefly Pontiac and Saturn – are now facing the axe, while its European assets Saab and Opel are on their way out the door. So what is a downsized GM planning for Cadillac instead? Using the next-generation Epsilon II platform, the replacement for the European-market BLS is tipped to come home to roost, positioned between the new Buick LaCrosse and the Cadillac CTS. With its advanced turbo-diesel programs also on hold, the General realizes it lacks the resources to produce a serious contender for the European market, so expect a decidedly more American approach when the new small Caddy hits the market late in 2011 as a 2012 model with a price tag of around $35,000.

[Source: Motor Trend]