The following article just appeared on the Automotive News website today:


Cadillac unveils ATS small car as assault on European dominance

GM executives hope the ATS sport sedan will help Cadillac become a global luxury powerhouse.






Photo credit: GM
Mike Colias
Automotive News -- January 8, 2012 - 4:45 pm ET
UPDATED: 1/8/12 6:10 p.m. ET
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PHOTO GALLERY: 2013 Cadillac ATS

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DETROIT -- Cadillac today will tout its new ATS sports sedan as a worthy rival to the best European small luxury cars and a step toward transforming the 110-year-old U.S. brand into a global powerhouse.

The ATS is Cadillac's first small car since the Cimarron in the 1980s. While the Cimarron flopped, General Motors Co. executives see the ATS as a formidable rival for the BMW 3 series -- the best-selling luxury sedan in the United States and the world -- as well as the Audi A4 and Mercedes C class.

The car debuts at the auto show here this week after an unveiling by GM's top executives this evening at the College for Creative Studies, one of the nation's top automotive design schools. It goes on sale in late summer.

"The ATS aims to change the status quo of the European-dominated segment," Don Butler, Cadillac's vice president of marketing, said in a statement.

That Cadillac's most critical launch in years is a small car might seem ironic for a brand best known historically for hulking sedans. But GM believes compacts have emerged as the most important segment in the global luxury market, in part because of their role as an entry point for younger consumers.

"All the luxury automakers are going for that piece of the pie because that's where the volume is," says Jim Hall, principal of consultancy 2953 Analytics Inc. in suburban Detroit. "Cadillac has got to be there."

Cadillac -- once the top-selling luxury brand in the U.S. market -- has been surpassed since the late 1990s by European rivals BMW and Mercedes, and Toyota Motor Corp.'s Lexus division.

In some cases, GM's flagship brand has been late to enter hot product segments such as SUVs or crossovers, or failed to gain traction with models such as the Catera or XLR roadster.

GM's financial woes have also forced Cadillac to pare its lineup and in some cases, delay products.

The ATS will be slotted below the mid-sized CTS sedan, the brand's top-selling car. Hall says the ATS has a chance to eventually surpass the CTS as Cadillac's volume leader.

China plans

In November, GM CEO Dan Akerson said the ATS, along with the recently unveiled XTS large sedan that goes on sale in the United States in late spring, will spearhead the expansion of Cadillac sales in overseas markets. He said GM will sell both cars in China and eventually produce them there, although he didn't say when.

The ATS' exterior design continues Cadillac's so-called art-and-science theme of angular lines and crisp edges, with narrow, swept-back LED headlights and plenty of creases. It's nearly 4 inches longer than the 3-series sedan, with a wide stance.

The interior, which features carbon-fiber and wood trim, will offer Cadillac's new technology interface that features an 8-inch LCD touch screen that lets the user flip through displays much as on a smartphone.

The ATS will be built at a GM plant in Lansing, Mich., alongside the CTS coupe, sedan and wagon. Industry sources have said GM eventually will build an ATS coupe and possibly a convertible.

IHS Automotive forecasts ATS sales of 15,000 units in the United States this year and 60,000 in 2013, including 3,500 coupes. It projects sales of 72,000 in 2014, including some convertibles.

Last year, U.S. sales of the BMW 3 series totaled 94,371, down 7 percent. A redesigned 3 series also will be shown at the Detroit show and goes on sale next month as a 2013 model.

The ATS will be the first GM vehicle to get a new 2.0-liter turbocharged four-cylinder engine that puts out 270 hp and 260 pounds-feet of torque. GM plans to roll the engine out to other models, too.

Other engines include the 3.6-liter V-6 used on the CTS and the SRX, which will be sold only in North America, and 2.5-liter naturally aspirated four-cylinder. They'll be combined with six-speed automatic and manual transmissions. All-wheel drive will be optional.

Lighter, more nimble

At about 3,400 pounds, the ATS' curb weight is lighter than some key rivals', including the Audi A4's 3,505 pounds and the Mercedes C series' 3,560 pounds. The BMW 3 series weighs 3,362 pounds. GM says fuel economy will top 30 mpg. An aluminum hood and natural-fiber door-trim panels help trim the ATS' weight, improving the car's fuel economy and making it more nimble.

The ATS should help reinvigorate Cadillac sales, which lost momentum last year after a strong comeback in 2010 that made it the United States' fastest-growing luxury brand. Cadillac's sales rose 4 percent in 2011 while industry volumes advanced 10 percent.

The slowdown stemmed mostly from a dearth of products. GM phased out the DTS and STS sedans last year to make way for the XTS. That left Cadillac with just three vehicles: the CTS, SRX crossover and Escalade SUV.

In addition to the ATS and XTS, Cadillac plans to introduce another new car, the ELR, a plug-in hybrid based on the Chevrolet Volt.

Carl Sewell, whose Sewell Automotive Cos. in Texas owns four Cadillac stores, said the ATS should bring younger buyers into the showroom.

Said Sewell: "For us to have a true entry into the largest market segment in the luxury field with the ATS is so exciting for Cadillac dealers."

 

I have an intense disgust for Cadillac. They would never have remained in business if they were a stand alone brand. I can't get over the fact that they've not made a "small car" since the 80s!

 

I just watched the video link of the reveal.....

270 hp 2.0l 4 cylinder
321 hp 3.6 V6
Manual or automatic trans
New platform with rear or all wheel drive
Magnetic ride control
Brembo brakes

The first comparison articles in the buff books should be very interesting.....

 

Finally, the boys over at GM are starting to get their act together.... we'll see if it looks the same once the real car hits the showroom, plus I'm looking forward to it's performance features and more importantly, it's price.

 

It looks slightly European side on if you can forget the nose & tail.

The Cadillac brand has just been dropped from SA again - the cars were so bad.

 

For better or worse, that is the production vehicle and was introduced to the public tonight at the beginning of the week of reveals of new vehicles at the Detroit International Auto Show.

 

Why should they have when the big ones were bringing money?

My wife just traded her 07 Escalade for a 08 C350 and a 09-10 CTS was also in the running. Nice car, but still really nothing compared to the W204. A new CTS-V would've been nice, but was not in the budget...

The Escalade was nice for what it was, but still a somewhat of a disappointment.

The specs of the new ATS look interesting. Maybe they are on to something.

 

The smaller cars (3 series, C, etc) have been the bread and butter of the luxury brands for a long time now. The big ones were not bringing money like the small ones do. The fact that it took them this long to even put out an attempt at a small car astounds me.

 

Cadillac did try before, but the Cimarron and Catera were not successful.

 

I do believe that it has been proven time and again that trucks and SUVs were the only real moneymakers to the Big Three for a long time. Including Cadillac.

And since Caddy's previous tries in the smaller car market (Cimarron and Catera) weren't really successes, I'm sure they were quite hesitant. They did their homework and then launched the CTS.

 

From the side it looks like a Toyota Camry, not such a bad thing as it is easier on the eyes than the recently restyled CTS.

It is an improvement for a GM product.
I think pricewise and features the CTS is more of a competitor for the C-class/3-series/A4, however in terms of size and weight this ATS is a competitor.
Cadillac still suffers from poor depreciation/resale value and doesn't have the cachet as Mercedes, BMW and Audi.

 

Definitely! And it will be hard for them to ever reach that, too. There's just too much legacy.

 

I definitely think its a great looking car, but I am kind of disappointed as far as being a "distinguished" model. I am surprised no one has touched on this yet, but it looks more like a refresh of the CTS model than a new "ATS"... I don't think that this will sell particularly well unless its priced well below c-class and 3-series, its main competition I feel will be the Infiniti G25/37...

 

True. Then again, there a lot manufacturers whose model lineup follow the same path. Or at least they used to.

It wasn't that long ago when it was pretty difficult to distinguish between 3- and 5-series with a quick glance, especially if you weren't up to date which was which.

 

There's the understatement of the month. The Catera was an Opel in drag and had terrible reliability problems. Did they sell them with Vogue tires?

As to the Cimarron, when Car and Driver road tested one, they said that for every sale, GM should send out a Letter of Apology.

 

At least they are making it RWD according to the posts here.

I do not understand this category of car when they aren't RWD.

I think there are worse cars than the new Cadillacs, not so bad.

 

The Catera was nothing but a badge engineered Opel.

Edit: Sorry - I did not read down. RLE had already commented.

 

Well - those "moneymakers" put them in the can - Federal bailout!

The CTS has done OK in the US but was considered garbage here hence the withdrawal. The things were falling apart on the showroom floor. In first year of ownership seats were going flat & trim falling off. Reliability problems.

It's sad. Everything with a GM/Chev badge here now comes from GM Daewoo Korea. The Opel brand is still sold & much better now.

 

Yes, because people finally realized that there are other vehicles than trucks and SUVs, too, and stopped buying them in large numbers.

That, any quite a few other factors. Legacy costs not being the smallest one, for sure.

 

As this has provoked a good conversation, here is another similarly sized car - the new 2013 Ford Fusion (which others may know better at the Mondeo) that just was revealed today, but at a lower price point (even if they have upwardly mobile aspirations). Is that a little Hofmeister kink I see at the C pillar base???

 

The ATS seems pretty good. To my European eyes it looks more cohesive than the CTS. I know that the CTS's selling point is its angularity, but it just seems a bit much in the front, especially the grill and the horrible fog light surrounds (those are even worse on the V – what were they thinking?). It's those details were the ATS outshines the CTS. Apart from that it is definitely more conservative than the brash CTS. Put some less blingy wheels on it, and it might not look out of place in Europe (not that any Cadillac is going to sell in any significant numbers over here anytime soon, no matter how good the car).

But what is going on with that interior? I have to admit that I'm not generally a fan of GM interiors, but the CTS looks fine on the inside (if they hadn't resorted to so much fake-o-luminum). However, this ATS interior looks horrid, both in the official press material and in the few "real" pictures that have surfaced so far. It can't possibly be as bad as it looks on screen...

The new Fusion looks very promising. Everything from the A-pillar back is a mild-but-good refreshment of the current Mondeo, and the new front end obviously looks great. I have never driven a current Fusion, but I hear that it is actually a good car. Very nice!

 

Now this is a car that should do well. Nice styling & the Mondeo platform has always been darn good.

I think Mondeo's are underated. People who own them have always been happy with the earlier generations. I think Ford is making some good cars. Focus & Fiesta are also darn good offerings.

The trapezoidal grill is becoming quite a signature piece. Almost Aston like!

 

Government Motors has always been known to built one frame, put different sheet metal on it and try to charge extra.

They need to get away from that and be more brand selfish; i.e. not share.

And just sticking more power under the hood isn't going to do it either for longevity.

Pay attention to the real consumer instead of STILL trying to tell them whats up.

$0.02

 

Cool looking car, hopefully its successful, I would be very surprised after the past decade if the new generation Cadillacs are unreliable, I'd hope GM used all that bailout money to make the quality right. Wondering when the new full size sedan will come out.

My mom has the Escalade and I must say I like it a lot. You'd think that a Chevrolet Tahoe with different bumpers and wheels, more wood leather, different suspension and a bigger engine wouldn't be much, but the end result is quite nice, very solid, comfortable, lots of torque, the leather smells nice and it looks classy. I would never let my parents pay retail for one though, I just think its a blatant rip off, a $30,000 premium over a tahoe for all the garish listed above, we got a 09 for low 40s, thought it was a good deal.

I can't help but like all of the big three, with a underdog sort of like.

And I really like the way that new Ford looks! It does have an Aston style grill, I guess they have the right to use that.

 

You are correct - it was the real moneymaker at the time (but not the only one!) This was the major cause of the downfall of the big 3 - they stuck all of their eggs in one basket without looking into the obvious future.

Edit: Glyn beat me to it!